You’ve been searching for your dream house for weeks or even months, and you’ve finally found it. Great! Now there’s just the small issue of making an offer …
For home buyers, making an offer is fraught with difficulties. Should you bid high and secure the property? Should you bid low and risk offending them? Here are some of the main issues involved in making an offer so you will stand a better chance of getting your hands on your dream property.
Don’t Show How Interested You Are
First of all, don’t give away how much you want the property. Play it cool and don’t start saying to the estate agent or seller how desperate you are to buy it. This will only give the seller more leverage to demand a higher price because they know you will be willing to spend more to get your hands on it.
Do Your Research
It’s important to find out as much as you can about the property and the area before making an offer. For example, find out how much similar properties are going for in the area because the seller might have overpriced it.
Also, how long has the property been on the market? If it’s been on a long time, they might be more keen to sell, which means you could put in a lower offer. Ask the right questions during the viewing to find out as much as you can.
Why are they selling? It might be hard to find out, but if they have got a job or are moving overseas, this could be the perfect opportunity for you to put in a lower offer.
When making an offer, it is generally good practice to start lower than what you expect to pay. Don’t go so low that you risk offending the seller, but up to about 10% lower than the asking price is fine. Many sellers ask for more than they expect to get.
If there are other people making offers, you will usually find out from the estate agent whether someone else has offered more, so you can usually go back and make another offer.
Be Realistic and Polite
Don’t be rude or aggressive at any time because the seller can always just refuse to sell to you. This is especially important if you negotiate with the seller directly.