Sian Hiatt, Sales Manager, offers some useful advice that homebuyers can take onboard before making an offer on a property...
For those property buyers who have found a suitable house or flat during their hunt, conversation quickly turns to making that first offer. It’s a question every homebuyer asks themselves when looking to open up negotiations - how much should my first offer on a property be?
This can be an especially awkward part of negotiations for first-time buyers. It’s difficult to understand market conditions when you’re brand new to the property buying process, and it’s also easy for newcomers looking to get their foot on the ladder to be blind-sided by the excitement they feel when they believe they have come across the perfect first home for them.
On one hand, a buyer will typically feel as though they don’t want to come in with a first offer that’s so below the asking price it offends the seller and ends up with them being disregarding as serious bidders, while on the other hand buyers don’t want to offer too close to the asking price just in case the sellers were always willing to consider significantly less.
So, how do you meet in the middle with your first offer?
How can you make sure your first offer is good but fair?
The property market is incredibly competitive, so it’s vital that buyers do all they can to put themselves in the best position possible before an offer is even made.
The first steps to take before weighing up the right opening offer to make, is to ensure you are fully aware of your financial situation. In fact, this should really be done before you even line up viewings. You don’t want other potential buyers to be several steps ahead of you when you do make your opening offer, or worse still, find your offer accepted only to soon find out that the price is actually out of reach for you anyway - yes, this happens, far more often than you may think!
Speak to a financial advisor or mortgage broker beforehand so you can house hunt with an affordable budget in mind and gain an idea as to which mortgage route will be best for you. There are many misconceptions about deposits and what will be required, not to mention the property market and the mortgage lenders within it are almost always moving in one direction or the other, so it’s important to be clear on what you can afford.
Check out our useful mortgage guide.
A homebuyer can also benefit from a mortgage in principle when making an opening offer as this proves to both the estate agent and the seller that you’re a serious bidder with everything in place to quickly proceed should the offer be accepted.
Once you have an affordable budget confirmed, the next step should involve researching the local areas that the properties you’re looking to view will be located in. Check out the recent sold prices for similar properties so that you can compare them with one’s you’re going to view and gain a better idea as to whether a potential home you may want to buy is either over-priced or under-priced.
This is where the help of a local estate agent can prove invaluable as they will fully understand the local market and will be able to assist and advise buyers through the entire buying process. Furthermore, if they are the estate agent acting on behalf of the seller, despite having a likely goal to achieve the best price possible, they will also be able to relay back key information to a buyer - for example, some buyers may task an estate agent with selling a property as fast as possible rather than for as much as possible.
Having all of this information to hand and taking the necessary steps before you even begin your property search will ultimately help you make an informed decision when it comes to putting in a first offer on a house or flat.
If you'd like more tips and advice on buying a property, be sure to read through our property buying guide to help put yourself in the best position possible when making that opening offer.
Are you on the lookout for your first property in Cardiff? Or are you on the search for an upgrade as you hope to find your forever home? Here at CPS Homes, our dedicated sales team have the drive and expertise to help you successfully make that purchase. Get in touch with us to find out more about how we can help by calling 02920 668585, e-mailing email@example.com or by simply popping into one of our three Cardiff based branches for a chat.