How do you make an offer?

paulb567

Hi,

We're viewing a property for the second time over the weekend and provided we don't find anything terribly wrong with it we will hopefully be putting in an offer.

My question is how do you do this? Do you just call the estate agent or should we go in to see the estate agent in person? Should we make the offer verbally or in writing?

When do you bring up some of the bad points you've noticed into the negotations? E.g. lack of parking, bad reports of road in paper, etc. Also when do you try and sell some of your good points like having a mortgage agreed in principle, being a FTB with no chain, etc?

Sorry if these things seem a little obvious but having never done this before we're a little confused.

Thanks

meanmachine_2

You pick up the phone, call the agent and make an offer, subject to survey.

Unless the vendor has insisted on only being informed of offers above a certain price, they will contact the vendor.

The vendor will ponder it and then probably reject it, expecting you to raise your offer.

Your offer will take into account all bad points and your good points, but you should always qualify an offer by explaining your situation, whether you have a mortgage agreed in principle etc.

You can also attach a time limit to the offer, but that is more likely to happen further down the line - for example, final offer, which will stay on the table until X date.

Ian_W

Agree with MM [wow! ], call the EA explain your position [good points, lay it on thick], tell them why you think the prop is worth what you're offering [bad points, but don't lay it on with a trowel, otherwise why're you offering?] make your offer.

If it's close to the asking it may be accepted, if not be prepared for rejection. Have in mind a max you're prepared to pay and don't go beyond.

Bear in mind also that if accepted there may be further negotiations after you've had a survey, if it brings up any faults you weren't aware of, that's quite normal.

Happy_saver_4

Hi Paul,

Whilst being shown around try and find out the current position regarding any other offers and how long the prop has been on the market, have the vendors found another property and need an urgent sale etc etc. All this info should indicate a likely price drop.

Then I suggest you phone or call into the EA; doesn't matter which. First explain your strengths of mortgage agreed in principle and FTB etc. This lets him know that you are a strong purchaser and he'd better listen to you.

Discuss with him any offers he's previously rec'd and get him to suggest an offer likely to be accepted by the vendor. Then bring up all the 'against' points and any money needing to be spent on the property. If you are still interested give him an offer below the price he suggested. Ask him to get back to you quickly as there is another property you could be interested in buying, at another Agent, if the vendors don't wish to accept your offer.

Hope this helps and good luck.

meanmachine_2

Yes, and never be pressured or feel you have to make a decision there and then.

If you lose the place, no worries. There are lots more.

And be prepared for the EA to suggest interest from other parties. They might be telling the truth, but the EA is working for the vendor, not you. So take everything they say with a large dose of salt.

Be courteous, but firm in your dealings. The vendor and the EA want as much money from you as possible.

John_M_Business

Agree with much that has been written above. Would add:
- Don't seem too interested, so definitely don't visit the EA unless you're just passing by
- Be patient, don't call up every day to hassle the EA, because that will only firm their resolve
- If the EA does come back with a 'No' you can always leave the offer with him/her
- You can invite the EA to suggest a price that their client would consider (not that you need to offer that much!)
- Keep looking, particularly with the EA that you're already in dialogue with, so that they are also aware you are not standing still in your search
- If you have any particular bonuses in your offer (you are 'no chain', you've already accepted an offer on your place etc.) then make sure you mention it

river_kwai

Is there a difference in making an offer verbally and in writing?

For example, would the buyer be more difficult to withdraw the offer if it's done in writing?????

John_M_Business

river_kwai wrote:

Is there a difference in making an offer verbally and in writing?

For example, would the buyer be more difficult to withdraw the offer if it's done in writing?????

No to the first point - because the EA is obliged to send the vendor any offers in writing in any case.

and, until exchange of contracts there are NO guarantees - whether or not the offer(s) were in writing.