Making an offer on a property is a big step, and it can feel a bit daunting if you’re not sure where to start. With a bit of guidance, you’ll be able to navigate the process smoothly.
Here’s everything you need to know about making an offer on a property, from getting started to what happens after your offer is accepted.
Related: The process of buying a home explained
Understand what an offer means in England & Wales
In England and Wales, when you make an offer on a property, it’s important to remember that it’s subject to contract. This means that even if the seller accepts your offer, nothing is legally set in stone until both you and the seller exchange signed contracts. Before that point, both you and the seller can still pull out if needed, so things can still change.
This gives both parties some flexibility during the process, and it’s important to keep this in mind as you move forward. Unlike in certain countries where an accepted offer is immediately binding, in the UK, the offer simply shows your intent to buy and begins the negotiation process.
Related: Top tips for getting your offer accepted on a property
Prepare before making an offer
Before you make an offer, there are a few key things to do to ensure you’re in a good position:
First, it’s a good idea to get a mortgage in principle. This is a statement from a lender that shows how much they’re willing to lend you based on your financial situation. Not only will this give you an idea of how much you can afford, but it also demonstrates to the seller that you’re a serious buyer.
Next, make sure you research the property’s history. Check how long the property has been on the market, whether the asking price has been reduced, or if it has been taken off and put back on the market. This can give you clues about the seller’s motivation and whether there’s room to negotiate.
Additionally, take the time to understand the local market. Look at recent sale prices for similar properties in the area to see if the asking price is fair. This will help you decide how much to offer.
Lastly, it’s important to set your budget and stick to it. While it’s easy to get carried away with excitement, be realistic about what you can afford. Remember to factor in costs beyond the property price, such as stamp duty, legal fees, surveys, and moving costs.
Related: Your complete guide to stamp duty: rates, reliefs & rules
Making the offer
Once you’re ready to make your offer, it’s time to take the next step. The first thing you’ll need to do is contact the estate agent. They will pass your offer on to the seller and let you know how they respond.
When you’re ready, put your offer in writing. While you can make a verbal offer initially, it’s a good idea to follow up in writing. This makes the offer more formal and provides a record of your proposal. Be sure to include the price you’re offering, any conditions like a survey, and possibly the completion date if you have preferences.
Timing is also important. If the property has been on the market for a while, you might want to make your offer sooner rather than later. On the other hand, if it’s a new listing, you might want to take a bit of time to evaluate it properly.
Finally, make sure to clarify that your offer is subject to contract. This means the offer is not legally binding until both parties exchange contracts, which is an important part of the process to protect both you and the seller.
Negotiation strategies
Negotiating is often a part of making an offer on a property. Here’s how to approach it:
Start by offering a reasonable price based on your research of similar properties in the area. If you offer too low, the seller might dismiss your offer outright, while offering too high might mean you’re overpaying. A fair starting point allows room for negotiation.
Be prepared to compromise if needed. Sellers may come back with a counteroffer, so stay flexible and be ready to meet somewhere in the middle.
It also helps to understand the seller’s situation. If the seller needs to move quickly, they might be more willing to accept a lower offer. Understanding their motivations can give you an edge when negotiating.
If you’re in a strong position, such as being a cash buyer or not needing to sell another property, make sure the seller knows. This can make your offer more attractive, as sellers often prefer buyers who can move quickly.
Related: Exchanging contracts: guide to completion
Make your offer stand out
To make your offer more appealing, consider offering a larger deposit. A larger deposit shows that you’re financially serious and capable of following through with the purchase, which can make your offer stand out, especially if the seller is considering multiple offers.
Another way to make your offer more attractive is by being flexible with the completion date. If you can accommodate the seller’s preferred moving timeline, this could work in your favour.
Additionally, if you’re confident in the condition of the property, you might consider waiving some conditions like a survey. But be careful with this – it’s important to ensure the property is in good shape before committing fully.
Related: How long does a house survey take
Secure the offer once accepted
Once your offer is accepted, the real work begins. First, you’ll need to instruct a solicitor or conveyancer. They’ll help you with all the legal work, including handling the contracts and ensuring everything is in order.
You’ll also want to arrange a survey. Even if the property seems fine, a survey can uncover hidden issues that might affect your decision to proceed. It’s always a good idea to know exactly what you’re buying.
If your mortgage hasn’t been fully approved yet, now is the time to get that final approval. Once you have it, your solicitor will help you exchange contracts with the seller, which is when the sale becomes legally binding.
Related: Understanding solicitors fees: a complete guide for first time buyers
Legal context & risks
Until contracts are exchanged, either the buyer or seller can pull out. If you decide not to go ahead before that point, there are usually no penalties, though you might lose costs like the survey fee. Once contracts are exchanged, however, the deal is legally binding. Backing out at this stage could result in losing your deposit and facing legal consequences.
Special considerations for Scotland
In Scotland, the process is different. Once your offer is accepted, the sale becomes legally binding immediately. There’s no “subject to contract” phase, so it’s essential to be sure before making an offer. This is formalised through “missives,” which are letters exchanged between solicitors that confirm the terms of the sale.
What to do after your offer is accepted
Once your offer is accepted, there are still a few steps to complete:
Stay in touch with your solicitor to ensure the process moves forward smoothly. They’ll keep you updated on any legal requirements or documents needed. You’ll also need to prepare for the move – book your removal company, set up utilities, and take care of any other details.
Finally, when everything is finalised, it’s time to celebrate! You’ve made an offer, agreed on the terms, and now you’re ready to move into your new home.
Making an offer on a property is an exciting process, but it’s important to approach it with care and preparation. For more advice or assistance, contact your local Martin & Co branch, our friendly team is here to help guide you through every step of the property buying process.
