If you are a first-time buyer or have previously struggled having an offer accepted on a residential property, then read on. This, the third blog in our ‘buying a property’ series, includes our insider tips on the topic of offers that we think all buyers should know when putting an offer forward on a property. Some property purchases can be straight-forward and it’s great when that happens. However, some  need more extensive negotiation and others may even go to sealed bids - whichever route your next property purchase takes, preparing yourself with this information might help you get the home of your dreams.

Preparing to place an offer on a residential property

The most important thing to do first is ensure your paperwork is ready. As required by the AML regulations, you will need to be able to verify your personal ID and verify your proof of funds so do ensure that you have your Mortgage in Principle agreed and that you have any cash funds available to view.

What steps will make my offer attractive and stand out?

To give yourself the best chance of securing a property, make your offer as concise as possible and include all of your terms within the offer so that there can be no ambiguity. Include information such as your  preferred completion date or what furniture or furnishings you would like to be removed or left behind. Being as clear as you can be can also help to minimise the need for further renegotiation after your offer has been accepted.

Being confident when negotiating on your offer

Making sure that you lead with your head and not your heart is vital when it comes to being clear with yourself on what you can afford. Set a maximum budget and don’t be tempted to go above it, as facing financial difficulties down the line, or pulling out of the purchase before the sale completes will cause upset and expense for both you and the seller.

Additionally, a seller won’t take your offer seriously if you make offers on more than one property at a time; so, do make sure you have thought long enough about whether the property you offer on is your preferred option. The seller will want to be confident you love their property and that it is at the top of your list, not just an option among others.

The process of going to sealed bids

A sealed bid is often the fairest way to agree a sale if there are multiple buyers hoping to secure the same property. It is a confidential process whereby buyers are not able to ask what the highest bid is in order to simply bid higher to try and secure the property.

The Sealed Bids process works as follows:

  1. All buyers are contacted, and the process is explained to them.
  2. The buyers will be asked to submit their ‘best and final’ bid in writing to the agent by a specific time and date.
  3. The agent and seller will then discuss the bids and the seller will choose which to accept.
  4. Buyers are then told of the outcome.

It is worth bearing in mind that the winning bid isn’t always the highest; for some sellers, the strength of a buyer’s position is paramount and will influence how attractive a buyer’s bid is. For instance, for a seller looking for a fast sale, a chain-free cash buyer’s offer will likely be more appealing than the offer of a buyer with a complicated chain behind them, even if they have the highest bid.

What happens when my offer on a property is accepted?

If all goes in your favour and your offer is accepted, have your solicitor ready to be appointed (or already appointed) so that the agent can issue the Memorandum of Sale and the legal process can get underway quickly. Moving swiftly will demonstrate your commitment to the property and sets the sale up on the right foot. At this stage it is also worth considering whether you will need a survey and swiftly appointing your surveyor means their report can be produced before too much time has lapsed.

Asking your estate agent for advice

The estate agent you are buying through will be able to give you advice on all areas of buying a property. If you have any queries, always ask an expert as they will be up to date with current regulations and want to help both you and the seller achieve the best outcome.

If you need advice and help on buying or selling a property in or around Tunbridge Wells, please contact us to speak with one of our award-winning team who will be able to help you.