Making an offer on a house is an exciting but potentially daunting prospect, especially if it’s your first home.
We often get asked, "how do I make an offer on a house?" So, our handy guide will help take you through the process to give you the best possible chance of securing your perfect property in Newport.
Work Out How Much You Can Afford To Spend
It’s surprising how many buyers begin viewing properties and then make offers based on vague assumptions of what their actual budget is.
Before you even begin any viewing, it’s important to find out exactly how much you can afford to pay for a property, including a deposit you have in the bank, or with a mortgage.
Getting a mortgage in principle (decision in principle or DIP) before making an offer can increase your chances of having an offer accepted and being seen as a serious buyer, so it’s worth speaking to a mortgage advisor before you start viewing property for sale in Newport.
You may be interested to read: First Time Buyer? Key factors to Consider
Research The Area
Knowing how much to offer and how much to reveal to the seller can be a real minefield. On the one hand, you want to ensure you get a good deal, but on the other, you don’t want to make an offer so far under the asking price that they don’t want to even begin negotiating with you!
Take a look at how much other properties in Newport and the surrounding area have sold for recently, and use these as a guide when making your offer. Our team at Freelancer Lets & Sales are expert negotiators and have the experience to help you through this process.
Preparation is key when it comes to making a fair offer that the seller will be willing to consider.
Stay Confident and Strategic During Viewings
When you find a property that feels like it could be “the one,” it’s important to express genuine interest while remaining calm and measured. As a buyer, showing that you’re seriously considering the property without revealing too much enthusiasm can help maintain a strong position.
You can demonstrate your interest by asking thoughtful questions about the property and its features. This approach keeps the conversation focused on the details that matter and helps ensure you stay in a good position throughout the buying process.
Next Steps: Making An Offer
Once you’ve researched the area, worked out your budget and found a property in Newport, it’s time to make your offer.
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Call the seller's estate agent and give them the offer verbally. They are obliged to inform the seller, regardless of what your offer is.
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Follow up with an offer in writing. An email should be sufficient, and this will help to avoid any confusion or misunderstandings further down the line.
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Emphasise what makes you an ideal buyer. For example, first-time buyers are often attractive to sellers as they come chain-free, while cash buyers are probably the most sought-after as they’re likely to be able to complete in the quickest time.
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Remember, most sellers are looking to move fairly quickly, so anything that can help speed the process up is likely to put you in a stronger position.
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If you don’t have any ‘USPs,’ then maybe provide details on why you want to buy the property. It may be for emotional reasons or because you have plans for raising a family there. It won’t necessarily make a difference, but if it comes down to you and one other buyer, then it might just swing it in your favour.
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Prepare to negotiate. Once you’ve made your offer, it’s likely that the seller will come back with a counter-offer. All of this is conducted via the estate agent who is working on behalf of the seller.
How Much Should I Offer?
There’s no set rule on this, as every transaction is different. If you know there’s been a lot of interest in the property, then you’re likely to have to pay the full asking price, and sometimes more.
However, if the property’s been on sale for a number of months and has already been reduced in price then you may be able to negotiate on price.
This is where your research will come in handy. Try to figure out what your strengths and weaknesses are in the negotiation. This is another reason why it’s a good idea to look at properties in Newport that are slightly below your budget, so you’ll have a little more room for manoeuvre.
Another point to consider when it comes to your strengths is to work out what makes you a good buyer. If it’s your first property and you already have a mortgage in principle agreed, or if you’re a cash buyer, then these can put you in a very strong position to negotiate a discount as you should be able to move quickly.
Always ensure your offer is fair and reasonable - avoiding any temptation to make an unrealistically low offer.
Freelancer Lets & Sales is your local estate agent in Newport. Get in touch with us on 01633 856344 or email us at enquiries@freelancerlets.com to find out how we can help you find your dream home.
Property to sell but not on the market yet? Request a valuation here.
In the meantime we've answered some of your common questions about making an offer on a property.
Frequently Asked Questions About Making an Offer on a House
How much should I offer on a house?
The amount you should offer depends on various factors, including the property's value, market conditions, and your budget. Research recent sales in the area to get a sense of fair market value.
When is the best time to make an offer on a house?
The best time to make an offer depends on the specific circumstances. However, it's generally advisable to make an offer promptly after viewing the property to show your interest.
How can I increase my chances of having an offer accepted?
To increase your chances of having an offer accepted, consider the following:
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Be prepared: Have your finances in order and be ready to move quickly.
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Make a strong offer: Offer a competitive price and be prepared to negotiate.
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Highlight your strengths: If you're a first-time buyer or a cash buyer, emphasise this to the seller.
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Be patient and persistent: The home-buying process can be time-consuming, so be patient and persistent in your search.
What happens after I make an offer?
Once you've made an offer, the seller's agent will communicate it to the seller. The seller may accept your offer, counteroffer, or reject it. If the seller counteroffers, you can accept, counteroffer again, or walk away. If your offer is accepted, you'll need to proceed with the conveyancing process and secure a mortgage.