Buying Property - A Guide to Making an Offer

Buying property in the UK can often be aIf there has been a lot of interest in the home
complicated process. Once a prospective buyerthen it is less likely that the owner will accept a
has identified the home they would like to buylow bid and so any offer made should take this
they need to make an offer. Making an offer caninto account.
be the most challenging part of the house buyingWhen buying and selling a home there are a
process.number of 'hidden' costs. Examples of these
If an offer is made that is too low the chanceshidden costs include various legal fees, moving
are it will be rejected and there is the risk thatcosts and the price of making essential repairs to
the property will be lost to another buyer. On thethe property. All of these costs should be taken
other hand making an offer that is too high runsinto account when setting a budget for how much
the risk of paying more than the property isa person can afford to pay for the property. This
actually worth. Fortunately with some researchbudget will obviously need to be set before any
and planning the process can be made easier.offer to buy a property can be made.
Before making a bid an interested buyer shouldA further cost in property sales is stamp duty
do as much research as possible into why thewhich is paid by the seller of the property and is
property is being sold and how long it has been onset at a percentage of its selling value. This
the market. If the property has been up for salepercentage varies according to the value of the
for a long period of time the owner may beproperty and so it may be in the interest of a
more willing to accept a lower offer. Similarly ifhome seller to accept a reduced offer if it keeps
the owner is desperate to secure a sale, theythem below a certain stamp duty threshold.
may for example have themselves had an offerWhen the offer to buy the property is made it
on a property accepted they are likely to beshould usually be done so in writing. Unless
more willing to negotiate on price.submitting a 'best and final' offer the amount of
When viewing a house it can be useful to find outthe bid should usually be set at slightly below the
how many other people have viewed themaximum amount that they would be willing to
property. This will give an idea on just how muchpay.
competition there is from other interested buyers.