Making an Offer
So, you've found the house of your dreams? Now's the time to go about making an offer - believe it or not, there's an art to this!
Usually, when you make an offer it will be over the phone (or possibly in person) to the estate agent. When you make the offer you need to be very clear about what it is you're offering and what you are expecting in return.
If you do make the offer over the phone or in person then it will not be legally binding. If you make the offer in this way then it's important to say that the offer is made "subject to contract and without prejudice". If you decide to make the offer in writing (or by email) then it is also worth stating at the top of any letter that "the offer is made subject to contract and without prejudice". This is important, otherwise your written offer could be held as legally binding.
So that's the technicalities - now let's think about the amount that you are going to offer. Unless there are specific circumstances (such as a really fast-moving housing market, or you know of great demand for a particular property) then it does not seem sensible for you to offer the asking price.
If you offer a lower amount than the asking price and the offer is rejected then there will always be the opportunity for you to increase your offer at a later stage. The estate agent will be duty-bound to forward your offer on to the seller.
On the other hand, some would advise not going in with an insultingly low opening offer. Offering somewhere in the region of 5-8% less than the asking price might be a good starting point. If the offer is accepted then you could be in line for a nice discount! If, on the other hand, the offer is rejected, you will still leave yourself plenty of rooom for negotiation.
When you make the offer (and any subsequent offers) don't forget to give details of exactly what you expect for your money. If your offer is made on the expectation of purchasing the carpets, curtains, oven, electric fire or whatever else it is that you intend to include as part of the purchase then do say so up front - it will save you hassle in the long run and ensure that both you and the seller (vendor) is clear on what is involved.
House buying, as you may have found out before reaching this article, can be a stressful business. Make sure that you are clear in your mind about what to expect at each step in the process. Good luck with your property purchase.
See Also:
First Time Buyers, Finding Estate Agents, Winchester Estate Agents