Making an offer
Buy, sell, buy, sell. The property chain can be frustrating. The best part is, as a first time buyer you are in the most favourable position of all, as you don't have a property to sell. Make sure you let potential sellers know your position and they will be more likely to accept your offer if they are in a hurry to sell.
Making an offer in England, Wales or Northern Ireland
Brilliant, at last you have found the home you truly want. Now before you get carried away and start offering the world, stop and consider, what do you really believe the property is worth?
Don't feel shy about offering less than the asking price. Some people offer even less if the place needs a lot of work. To gauge other property values in the area visit upmystreet, here you will get an idea of how much property is worth along with a whole host of other information about the area you're interested in. Make your offer verbally, unless you are told by the estate agent to put it in writing, then hold tight.
Your offer will either be accepted, rejected or you'll have to wait until other potential buyers have made their offers. Be prepared to negotiate if they do. If a property has been on the market for some time, you might find your offer is accepted quickly.
It's still standard to make it clear that your offer is subject to contract and valuation and survey This means you're not yet legally bound to buy. It covers you in case you cannot go ahead with the purchase, for example: if the survey advises against purchase, if you can't get a mortgage or if you change your mind for another reason.
One thing to beware when buying in England, Wales or Northern Ireland is "gazumping".It happens rarely but it is something you should be aware of.
Basically, gazumping is what happens when you are out-bid by a rival buyer when you have had an offer accepted. If their offer is higher and the seller decides to accept it (for example because they need more money for their next property) you sadly lose out. You could even lose money already spent on your conveyancing - unless you are insured through your conveyancer.
Your offer hasn't been accepted?
If you can't afford to make a higher offer you may need to
start your property search again.
Your offer's accepted?
Well done! Now visit 'the bank' to arrange your mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Making an offer in Scotland
Brilliant, at last you have found the home you truly want. Now before you get carried away and start offering the world, stop and consider, what do you really believe the property is worth?
To find out for sure, you arrange a valuation/survey before you make your offer. Your conveyancer then puts your offer in writing - including a price, date of entry, and a series of conditions regarding the property. To guage other property values in the area visit upmystreet. Here you will get an idea of how much the property is worth.
The seller invites offers in excess of the asking price through a sealed bids system, where all interested parties make their bid in writing. When you make your bid, try to avoid a rounded figure - instead try an odd amount, such as £100,101. The aim is to avoid a tie with the other bidders.
If your bid is successful, the seller's conveyancer then replies with an answer to your bid and their conditions. The exchange of letters, known as missives, continues until all differences are resolved. Once everyone is happy, the well-known phrase, "we hold the bargain as concluded", is spoken and the contract is binding.
Your offer hasn't been accepted?
If you can't afford to make a higher offer you may need to start your property search again.
Your offer's accepted?
Well done! Now it's time to arrange your mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.