We found a property that feels like home. Right location, right size… You're ready to make an offer, but you want to get this process right. Here's what you can do:
This blog includes tips on how to calculate your offer price, how to enhance your offer without giving away more money, and more. But if you take away one thing from this blog, it would probably be to be prepared. The more you prepare, the more focused you will be, and the more you will be proud of your decision. The more prepared you are, the more serious you will appear, the more sellers will trust you to perform your role efficiently, and the more real estate agents will be able to recommend you as the best buyer.
Step 1: Know what you can offer
It’s important to speak to a mortgage advisor if you haven’t already done so. Have them draw up an Principal Mortgage Agreement (AIP) to calculate the mortgage and interest rate you can afford. Not only is this important when making an offer, but it can also be used as proof of funds to the vendor. 
Our partner, Alexander Hall, works with all financial institutions, large and small, to provide you with a wide range of mortgage options. We'll also help you gather documents, submit applications, and liaise with lenders, supporting you every step of the way.
We also recommend that you consult an attorney before making any offers. You should allow enough time to find the best lawyer for your situation so that you can begin inquiries as soon as possible after your offer is accepted. We encourage you to contact Conveyan, who will help you determine if you are ready to purchase.
What does the offer include?
There are multiple strategies for making an offer on a home. You may want to start talking about your actual offer right away to avoid haggling. If not, you may want to start with a lower offer to give you some room to negotiate without going over your budget. Buyers may try 5-10% below the asking price as their first offer. We only recommend accepting offers realistically.
Whatever your strategy, you need to make a list of all the factors that influence price. This is useful not only for the initial offer, but also as negotiations progress. Consider:
housing market. Is it a buyer’s market or a seller’s market? Do you have an advantage? How committed are the vendors? Are they part of a real estate chain and need to sell as soon as possible to free up capital? ?Are they just trying it out and only selling if the price appeals to them? How keen are they? Initially, this will influence how much risk they take, such as bidding low. may give. Also, the more you negotiate, the more you might fall in love with the property. Its worth. Look at other similarly sized homes in the area to see how fair, underpriced, or overpriced the asking price is. Active properties are helpful here, as they can provide a more accurate indication of value than sold properties, which reflect the previous market. Anyone interested? If you think the asking price is fair when you first walk through the door, and you know the offers will pile up by the end of the week, you might make an offer at the asking price. I don't know. If it's been on the market for a while but you can't eat it, you might be lucky and get an offer at a lower price. We may offer slightly more than the asking price and request no further showings, subject to reaching agreed upon milestones along the way. Speedy timeline. Everyone wants to avoid negotiations taking too long and falling apart. If you can get the process done faster – provide proof of deposit, mortgage principal approval/additional funds, have a well-trained attorney available, and make sure your home is on the market. If you are buying/selling, and you have the necessary documents (including ID and proof of address) you are ready – that alone is worth it. A seller may accept a lower bid than a higher bid from an unprepared buyer. deposit. Consider how much cash you can put down upfront, especially if you're thinking of making a low bid. Inflating the deposit can sway an uncertain seller. What kind of work does that require? How old is the boiler? How old is the roof? If you need work done, is it urgent or can it wait? Major repairs will put a strain on your new home's budget, but are they worth it?
How to make an offer
The offer letter (or email) will clearly state the amount you are willing to pay. Other things you can include are:
What factors led to that price: What we found from surveying the area, estimated repair costs, speed of schedule, and anything else we considered when considering the offer. You will need to do some work on the day you plan to move in. If there is a mortgage agreed between the principal/solicitor, the amount of the earnest money.Contingency: A condition that, if not met, allows the transaction to be canceled without penalty. These include “Subject of Investigation”; In this case, the offer will depend on what is discovered in the survey you arrange. “Subject of Contract”. This means that the legal side of things (the contract of sale) must be satisfactory to you and your legal advisor. and “remove the property from the market.” This is often a request to stop new viewings even though good progress is being made.
Always send offers in writing (yes, email is considered “writing”). Written proof of the full offer is required to avoid future confusion.
Second offer (and third)
Don't be discouraged if your first offer isn't accepted. That's common. Ask your real estate agent why and get as much information as possible. That way, you won't blindly offer more money even if that's not the reason for the rejection.
Suppose the seller rejects your offer because of the time period you proposed. When I asked for more information, I found out that the problem was that I had asked for an “investigated” contingency. Please keep asking. You may find yourself competing with cash buyers who don't want a survey and can close the sale faster. Once you know all the details, you'll know whether to walk away, raise the price, or find an inspector to visit the property right away.
Once you find out the reason behind the rejection, think about what to do next. If you want to make a second offer, go back to your list of factors and think about what the property is worth. When making a second offer, especially if you're increasing the price, it's a good idea to ask what you can get in exchange for your compromise.
If your second offer is also rejected, why not ask them to make a counter-offer to see where they are coming from? You may not be able to reach an agreement with the seller. It happens and it’s upsetting. But if it does happen, take it positively. You'll have a clearer picture of what you want in your new home, you'll have done a lot of research on the area and the market, and you'll have experience making an offer. Talk to your agent and get back to the field. Who knows, maybe you'll find the perfect home just one place away.
next step
On the other hand, if your offer is accepted, it is essential that you retain a lawyer (if you do not already have one). A good lawyer can make all the difference and ensure a quick and smooth purchase.
The market is flooded with buyers right now, so to make sure you stay ahead of the competition, it's a good idea to hire an attorney before making an offer.
There are many excellent lawyers out there, but we recommend Conveyan – Foxtons expert lawyer panel. Conveyan works with a number of independent law firms, all of which have been invited to join the panel based on their previous experience with Foxton transactions. Our extensive experience in numerous companies ensures that we always have the expertise you need. You'll also stay informed with regular updates, 24/7 access to case tracking through the Conveyan portal, and a dedicated attorney who will be your point of contact throughout the process.
Additionally, all companies on Conveyan's panel operate on a no-move, no-fee principle, meaning that if something goes wrong along the way and you are unable to reach the exchange, you will be covered for legal costs. There is nothing to do.
Another thing you need to do is arrange for a property inspection. It's important to approach this big life investment with all the facts in mind. A good surveyor should be able to help you. We work in partnership with Arnold & Baldwin, a Royal Institution of Chartered Surveyors (RICS) regulated property surveyors who provide expert insight. They give you honest, third-party information you can use to make decisions, avoid costly surprises, and have confidence in the price you're offered.
