How to make an offer on a property

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Purchasing a house can be a tricky process. There’s conveyancing to worry about, survey reports, EPCs, mortgages and more. But before you can start any of this, it’s important to find a house you wish to purchase.

When we bought our current house, we’d been to view it and put an offer in 30 minutes after leaving the property. We both loved it, and our estate agent told us to sleep on it for 24 hours before making the offer. But neither of us could wait!

If you’re worried about the process of making an offer on a house – how much should you offer, how do you do it, how long will the process take, what if you get declined? – read on to find out the answers with me and HSBC.

Making an offer on your dream property

   

First, it’s important that you make your offer to the estate agent that’s selling the property on behalf of the sellers. The best way to do this is to phone them, providing clear information about who you are and which property you’re making the offer on.

Tell them the figure and then follow up the same figure in writing, such as an email. It’s important that you send it in writing just in case they mishear the figure you discussed on the phone.

Then, it’s a waiting game for the estate agent to speak to the seller, discuss your offer and either accept it, reject it or return with a counter offer.

What if your offer is rejected?

It’s quite common for a first offer to be rejected, so don’t be dismayed. You can decide whether you can slightly up your offer or whether it’s worth waiting for another property.

 

As HSBC’s image above recommends, you should consider whether upping your offer is the right thing to do. You may wish to consider whether you’d be able to get a mortgage for the increased amount, whether the property is worth it and whether you’re willing to increase the amount for the property. In some cases, you may wish to find another property. In other cases, you may speak to your estate agent about increasing your offer.

Some sellers keep their property on the market in the hopes that they’ll get an offer higher than yours. If the seller accepts your new offer, it’s important that you ask them to take the property off the market, or mark it as Sold.

Ensuring your offer is the one that’s accepted

 

There can be a lot of competition when buying a house. Many other people can have their eye on the same property, particularly if it’s a popular location where houses rarely come on the market.

So what can you do to ensure that your offer is the one that’s noticed?

Well, you can mention anything that sets you apart from other buyers. Perhaps you have a large cash deposit or aren’t in a chain of buyers. Being in a chain can slow the buying and selling process down, so having no chain can be a big pull for a seller.

It may also help if you have your mortgage in principle ready. If your bank has already preapproved you for a mortgage, the seller could be more likely to sell to you, knowing you’re a safer option than someone who may not have completed this step.

Having a solicitor or conveyancer ready may be beneficial, also.

What is a sealed bid?

Sealed bids are a type of offer that are used when there’s lots of competition for one property.

   

It involves putting your offer in a sealed envelope, which is handed to the estate agent. The agent will open all envelopes, check all the offers and the seller chooses the highest bid. Sealed bids are frequently used in Scotland, but also when the seller believes there could be a lot of offers on the property.

When this is the case, you should think carefully about your offer. It’s usually not worth overpaying if you can’t afford what you’ve offered or if the house isn’t worth that much. Make a sensible offer and don’t put in a very high offer if you cannot follow through with the purchase.

 

Making an offer on a property is a really exciting process. Do you have any stories about making an offer or purchasing your current house? I’d love to hear them! Comment below.

 

Advertisement feature: This is a paid collaboration with HSBC. Lending is subject to status. Your home may be repossessed if you do not keep up repayments on your mortgage.