What to Consider Before Making an Offer

Buying a new home is exciting, especially if it’s your first one! Before making an offer on a property you like, there are several important factors you need to consider to ensure you make a well-informed decision that won't impact your future negatively.

Have a look below for our suggestions.

Know Your Financial Position

Before you start house hunting, you should check how much you could borrow and afford to spend. There is nothing worse than falling in love with a home that could end up being out of your budget. This can impact the way you view every other property after and unnecessarily prolong the process, as you look for a similar home, especially if the features you want exceed your affordability.

Having a mortgage agreement in principle and a deposit will put you in a good light with estate agents. Your deposit should be at least 10% of the property price, although some banks might let you get a mortgage with a lower deposit. Either way, don't forget to look at different banks and the mortgage deals they offer- you don't need to go with the one you usually bank with.

Research Local House Prices 

Prior to making an offer, it is a good idea to research the local house prices and sold prices, so you understand how much properties like the one you are looking at are selling for in that specific area. This will reassure you that you aren’t paying too much, but it can also help you avoid finding yourself in negative equity if you decide to sell the property in the future.

The Property

Don't forget to consider the age and condition of the property, the area it is in and any potential improvements in the future. This could affect its current price and how much you could sell it for later on. A property that requires significant renovations (brand new kitchen & bathroom for example, replastering and knocking down walls to fit your needs, etc.), can end up costing more than one that is slightly more expensive but you can move in straight away. 

The location of the home you are looking to place an offer on is something else you need to consider- are there any planed works in the area, what are the local facilities like, are there handy transport links, schools, GP surgeries, crime rate, etc.? 

Negotiations 

Before entering into either negotiations or a sealed bidding process, decide on how much you want to spend on the house you are buying and think hard before exceeding that amount. Do not forget the extra costs of buying a property, like broker and solicitor fees, stamp duty, re-painting the walls, buying new furniture etc.