Finer points of making an offer

1980sFlunky

Hi all,


Looking for some advice on the etiquette of making an offer on a house. As a FTB I've trawled the forum for months, absorbing as much knowledge as I can, but I couldn't find any single thread or post that quite directly answer my questions now - if there is another thread out there please feel free to direct me to it!

I'm just after advice on how to put an offer in.


From the posts I've seen on these forums, I would say I've heard the following advice:


Put it in writing/follow up in writing
Explain a bit about your situation, and what makes you (hopefully) an attractive and serious buyer
Explain the offer is subject to survey
Explain the offer is subject to the house being marked SSTC
Explain the offer is subject to the house being taken off the market
Clarify what is being included in the sale (I know this obviously comes up when viewing the property also)


So my questions would be as follows:


1. How accurate is the above advice do you think?
2. Assuming you follow up in writing, how much of the above should also be covered in the phone call? If 'all', then fine! Also, by writing do we mean snail mail or email?
3. How much do you 'justify' your offer (we feel the property is overpriced for the local market) at either initial offer stage, or at increased offer stage should it come to that? I've seen some suggesting not to get bogged down in this at all, is that fair?
4. Is there anything I've missed?


As a complete amateur at house buying and negotiations, the one thing I don't want to do when putting the offer in, is to come across as a clueless. Even if I am haha


Thanks in advance for any replies!

Cakeguts

You offer what the house is worth to you after you have looked at what houses in the immediate area have sold for.

[Deleted User]

Hi,


you can compare prices on Zoopla, maybe even see how much the seller paid for it and how long ago, if massive increase in price then has he made a lot of improvements?

1980sFlunky

Thanks for the speedy replies both of you, which does help confirm that the offer I want to put in is fair! However as I say I'm after advice on how to put the offer in, rather than on the amount of the offer

Mutton_Geoff

1980sFlunky wrote: »

1 - Put it in writing/follow up in writing
2 - Explain a bit about your situation, and what makes you (hopefully) an attractive and serious buyer
3 - Explain the offer is subject to survey
4 - Explain the offer is subject to the house being marked SSTC
5 - Explain the offer is subject to the house being taken off the market
6 - Clarify what is being included in the sale (I know this obviously comes up when viewing the property also)

1 - Won't make any difference or add any weight compared to a call to the agent, but fill your boots.


2 - The agent will be interested in whether you have a mortgage offer in principle, funds for deposit etc. You are are no obligation to see their own mortgage broker whatsoever although many will try to convince the naive that it's part of their checks on you. It is unlikely your offer is acceptable unless you are "proceedable", ie funds lined up.


3 - Almost goes without saying, although I didn't bother with a survey on my last purchase.


4 - Irrelevant how it's marked, some agents will ring round their prospects to let them know that particular property is under offer to see if they can get a better offer for their client.


5 - As above. Remember, the agent doesn't work for you. You can ask this though, it's perfectly reasonable.


6 - Small detail, that is covered by stuff later but ask any biggies.


Apart from a mortgage offer, I would also get a solicitor lined up (I don't like conveyor belt conveyancing firms). By all means ask the agent for a recommendation, but remember they will often be on a commission. Ring round locally for ballpark figures and have someone tee'd up so you can complete the details in the agents Memorandum of Sale almost immediately.


And always remember, nothing is binding or included/excluded until you actually exchange contracts. You or your vendor can walk away at any time, so the stipulations you mention don't really carry any weight. First to the post with the money does.

Grenage

No justification or rambling; just give the agent the figure you are offering.


If there are larger items that you wish to be included, you might as well ask before you make the offer.

shortcrust

I think you’re massively over thinking it. I made my offers in fairly informal phone conversations with the EA. I didn’t put anything in writing. I’d chatted to the vendor about my ‘position’ in a casual way when I viewed. We discussed the finer details of what was included after the offer had been accepted on follow up viewings. You don’t need to justify your offer or even particularly sell yourself. Everyone knows it means taking it off the market etc but it won’t hurt to say “great, so obviously it’ll be taken off the market and they’ll be no more viewings?” if and when your offer is accepted.

All you need is to ring the EA and say “Hi, I’d like to make an offer of £xxxx on the property.” and let them guide the conversation from there. They know what the vendor wants to know.

klew356

Put it in writing/follow up in writing
Explain a bit about your situation, and what makes you (hopefully) an attractive and serious buyer
Explain the offer is subject to survey
Explain the offer is subject to the house being marked SSTC
Explain the offer is subject to the house being taken off the market
Clarify what is being included in the sale (I know this obviously comes up when viewing the property also)

All I can offer is my own experience, I emailed the EA, with my offer price explaining that I had taken into account the prices in the area and the work needing done on the house. I explained what excellent situation I was in to get the ball rolling quickly for a quick sale. I said subject to SSTC and being taken off the market plus anything I wanted done before the exchange in my case it was a stairlift removed.

i did nothing over telephone and all over email, i have yet to meet my solicitor!

patch9495

Hi,

Others may disagree with me however being a first time buyer myself not too long ago these were the steps I took

1) Look on Rightmove/Zoopla and identify sold house prices for similar properties within the area. Assuming this house doesnt have any additional features the others dont, this should determine your maximum walk away price

2) Get agreement in principle (AIP) sorted prior to placing offer

3) Upon viewing the house, make your intentions for a quick sale clear to the agent/vendor. Being a first time buyer you are in a strong position due to no chain. Also stress that you already have an AIP in place, and ascertain the sellers need for selling. If they are after a quick sale this could be handy negotiation tool further down the line

4) Offer one. Verbal conversation followed up by an email to the seller. 10% below your maximum walkaway price (not asking price). This is to display serious intent, and is not expected to be accepted. Infact if accepted then alarm bells should start ringing as to why they have accepted so cheap. If you are a football fan this can be compared to Arsenals "stupid" £40m bid this summer for zaha.

5) Offer rejected. EA will most likely say vendor is holding out for X amount. Wait a few days-week or so then go back in with an offer halfway between what the vendor is looking for and opening offer, followed up by email. At this point say offer is SSTC and survey.

6) If offer 2 rejected, leave another few days and offer the amount vendor is after/ your maximum walkaway price (whichever is lowest) Again follow up in email saying SSTC and survey. At this point you stress that you are a FTB, no chain, and other similar houses have only sold for X, therefore you feel your offer is fair (justification for offer) If accepted great you begin the process if not, then the property if no additional features I would personally walk away.This of course depends if you are emotionally invested in the property.

A house we offered on had nearby sales of £290K and a bathroom refurb and was on the market for £300k to £325k. We offered £280k rejected £287k rejected and then £293k rejected. We walked away at this point, with the EA saying the vendor was holding out for £325k.

Said house is still on the market a year later for £280k. We are happy in our higher potential and cheaper house

Hope this helps

shortcrust

patch9495 wrote: »

Hi,

Others may disagree with me however being a first time buyer myself not too long ago these were the steps I took

1) Look on Rightmove/Zoopla and identify sold house prices for similar properties within the area. Assuming this house doesnt have any additional features the others dont, this should determine your maximum walk away price

2) Get agreement in principle (AIP) sorted prior to placing offer

3) Upon viewing the house, make your intentions for a quick sale clear to the agent/vendor. Being a first time buyer you are in a strong position due to no chain. Also stress that you already have an AIP in place, and ascertain the sellers need for selling. If they are after a quick sale this could be handy negotiation tool further down the line

4) Offer one. Verbal conversation followed up by an email to the seller. 10% below your maximum walkaway price (not asking price). This is to display serious intent, and is not expected to be accepted. Infact if accepted then alarm bells should start ringing as to why they have accepted so cheap. If you are a football fan this can be compared to Arsenals "stupid" £40m bid this summer for zaha.

5) Offer rejected. EA will most likely say vendor is holding out for X amount. Wait a few days-week or so then go back in with an offer halfway between what the vendor is looking for and opening offer, followed up by email. At this point say offer is SSTC and survey.

6) If offer 2 rejected, leave another few days and offer the amount vendor is after/ your maximum walkaway price (whichever is lowest) Again follow up in email saying SSTC and survey. At this point you stress that you are a FTB, no chain, and other similar houses have only sold for X, therefore you feel your offer is fair (justification for offer) If accepted great you begin the process if not, then the property if no additional features I would personally walk away.This of course depends if you are emotionally invested in the property.

A house we offered on had nearby sales of £290K and a bathroom refurb and was on the market for £300k to £325k. We offered £280k rejected £287k rejected and then £293k rejected. We walked away at this point, with the EA saying the vendor was holding out for £325k.

Said house is still on the market a year later for £280k. We are happy in our higher potential and cheaper house

Hope this helps

Crikey. It’s not that complicated...

1980sFlunky

Thanks all for the replies, much appreciated. Perhaps I am overthinking it, but sometimes you need to post on a friendly forum before you realize it haha.


Thought of a follow up question that possibly also falls into overthinking territory, but how many offers would one usually put in on a house? I've seen "aim for no more than 2" bandied about a little, how do you all feel about this?


Having never sold a house before (obviously), I can only empathise so much with the vendor - at some point I can appreciate repeated incremental offers will become annoying and I don't want to come across as, or indeed be, a timewaster. I would think 2-3 is reasonable - is this a fair assumption?


Thanks again to all who've replied