How to prepare to make an offer
Making an offer on a property is a big decision and one we’re sure you haven’t come to lightly. Having said this, if you’re truly ready to take the steps to make a place yours, there are a few key indicators you should consider before you get out the cheque book.
Leave your feelings at the door
Whilst this may be a very emotional decision for you, you can’t let your feelings solely dictate how you proceed when making an offer. Try to be rational and reasonable about what you can and will be able to offer, regardless of your feelings about the property.
This also applies to feeling heated or frustrated with the process, too. Everyone involved wants a sale to run as smoothly as possible. Though there are many processes and procedures to cover, everyone is hoping for the same end result.
Do your research
Know the market you’re heading into. Understand the typical prices for properties of that type in that location, this could give you far more bargaining power in the long run.
If at all possible, try to be at the first open inspection. This isn’t being over-eager, it’s actually research. Particularly if the property is up for auction, you’ll be able to somewhat determine the wider interest in the property.
If you are one of few there, the seller may be more flexible on asking price and jump at the opportunity to make a sale on an early offer.
Timing can be everything
Make an offer quickly. As mentioned above, offering early could be the perfect opportunity to snap a place up when the vendor is eager to make the sale.
Leaving more time for the seller to get desperate is actually a rare occurrence in reality. Instead, this creates the opportunity for other buyers to emerge and gets you into a more competitive market.
If the property is up for auction, again, it’s not being overeager to simply lay your cards on the table and make a pre-auction offer. Having the offer in writing and have your finances prepared already is very important in convincing a vendor to move ahead with you in this instance.
Create the path of least resistance
Putting offers in with conditions merely adds obstacles to a smooth sales process. This is not something vendors want to occur. By putting in an offer without conditions you could effectively fast track yourself to the front of the queue. This most commonly means you should have your finance arranged before making your offer.
Be willing to negotiate
The asking price isn’t the be-all and end-all. Take it as more of a rough guide as to what the seller is hoping for the property. However, you have to be willing to move on this too. Negotiation can be a back and forth dance but hopefully, it results in a price that both parties feel comfortable with, in the end.
Look at it this way, if you’re in love with a property you should be willing to pay what you can to make it the home you envision.
Whilst leaving room for negotiation is important, going in with your lowest possible offer doesn’t always leave you in great stead with the vendor. Being forthcoming and upfront about your intentions, once again, leads to a path of least resistance.
No one likes to feel like they’re being played games with, so be truthful and reasonable with your offer, whatever the best version of that looks like to you.
Be prepared to walk away
If you have truly made your best offer, be prepared to walk away. Overstretching yourself is not the best way to begin the journey of owning a property and will only add further stress to what is supposed to be a positive outcome.