Buying a property tips; How to make an offer
My first tip on property investment.
It is best recommended that you do a few checks on the property first before you think about making any type of offer. Things that you would need to consider is would include the reason the owner is selling the property as this particular time which could amount to a number of reasons such as planned development in the surrounding area and the property that you are considering is literally located right next to a construction site.You should also check the value of the house, like with doctor you may want to get a second opinion on the pricing of the property as sometimes the estate agents’ valuation can be very different from one another. Another option is to check the pricing of similar properties in the local area, if the similar properties seem more expensive then you could be onto a good bargain here, however if you find out the properties are actually cheaper you may want to take this into consideration when you make an offer. And finally, something which you may or may not already know but you would need to check whether the particular property that you are interested in is freehold or leasehold. For leasehold property the mortgage lender would normally require 60+ years left on the lease.
Your ability to negotiate will determine the right price
After you have looked through the property and deem that it is still worth it, the question now is how much should you offer? You should take some of these factors into consideration when making any offer, such as; how long has that particular property been in the market, this is because the when the property has been on the market for a long time it may indicate that there is low interest in that property therefore you would be in a better position to make an offer that will satisfy you. If you sense that the seller is desperate in selling the property, you can take that to your advantage and make a lower offering. However the seller would be more demanding with the price tag if there is more than one party that is interested with the property, but if you are the only one then you stand a better chance of getting a better bargain on the piece of property. Set a certain budget for yourself, so that at the end of the day you would be happy with the investment. Make sure that you do not go over the budget and make the initial offering less than this so that there would some room for negotiation on the price.
Your status as a buyer will determine a lot
Another thing that can be useful during negotiations is the position that you are in as a buyer, so when you have the opportunity you may use the following to your advantage. For example have you already arranged your finances, do you have a deposit ready at hand and what about the provisional agreement with the mortgage lender. If you show that you are prepared in terms of finance and you know what you are doing, then the seller would take you more seriously. You would also be in a better position if you don’t need to sell your own home before you move, so whether you are a first time buyer or someone who has sold their own home plays a role as well. Not being in a short chain which basically means that you are not selling another house will put you in a better position as well.
If you are not the pleasant type, then fake it until you make it
So take the tips that have been provided and make them work to your advantage, this way you can get the best offer for the property that you are interested in. Another thing to take note of is that when you are negotiating with the seller always try to stay pleasant as this can play into the decision making process for the seller that have several potential buyers who are all offering the same deal. So naturally they would want to sell it to the ones that they have the best relationship with.
Bypassing the middle man
If the person that you are negotiating with is the estate agents, you should take note that the agent will be getting paid a certain percentage of the selling price. This basically means that they will be negotiating for a higher selling price and they should be good negotiators, since they are already doing this for their living. So when you are negotiating with them try to remain indifferent, if they sense that you have set your heart on this particular property then they would use it to their advantage. Another way to get around this obstacle is to contact the seller directly so that you can negotiate with them directly.
Verbal or written: Which is safer for you?
After you have agreed to the offer make sure that it is made in writing as verbal agreements are not legally binding as compared to the written ones. While this is the case you should also bear in mind that your written offer should be clearly marked as subject to survey and contract. This is to actually protect you as you do not have to be committed to the purchase if anything goes wrong with the exchanging of the contracts or if the survey reveals any problems in the property. The offer should also include other information such as the details of what fittings and fixtures that will be included with the property.
To avoid the unlikely case of gazumping, once you have made the offer make sure that the property has been taken off the market.
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