Buying your very own first house is a big milestone and a personal achievement. The process can be tricky, as wrong choices might end up making you further away from your dream house.
As a house buyer, it’s not that hard to score a dream house. However, making an offer that the seller can’t resist is another thing. So in this post, we’re going to guide you through some essential steps to making a great offer when buying a house for the first time.
So, what do you need to do before making an offer when buying a house? Let’s find out!
How to Make an Offer When Buying a House
The first important step in buying a house is understanding your finances in order to get your mortgage pre-approved. Feel free to discuss it with more than one potential lender, so you can compare the pros and cons of getting a mortgage from each one of them.
At this point, you’ve probably already talked to a real estate agent, and maybe done the searches and surveys to consider which house you want to buy based on your desired criteria. And maybe you’ve already come up with a house that you’d like to make a serious offer on.
Now that you’ve checked all the necessary steps, here are some necessary steps to do before making an offer on the house you want to buy!
Get your lender pre approval for a mortgage.
It is highly recommended to get mortgage pre-approval before making an offer, even before searching for a house. It will give you a realistic view of what you could borrow and afford, so you can avoid wasting time on properties that don’t fit your budget.
In any transaction, trust is required to finalise the transaction. That applies especially to the property business. Sellers tend to approve offers from those who can actually afford to buy the house, so getting your mortgage pre-approval is essential for them to take your offer seriously.o
In order to do this, you can apply for a mortgage in principle to get you started. A mortgage in principle can be obtained by a soft credit check, and it will give you an idea of how much your mortgage lenders can lend you based on your credit.
Once you get the approximate number, you can focus more on the properties within that range to maximise the acceptance rate of your offer.
Do your research to find the average price of the property in the same area.
It’s important to know the ballpark of properties’ prices in the same area so you can make a fair offer to the seller. Talk to your real estate agent to find out how quickly the seller wants to sell. Those who need to move quickly will most likely accept offers at the lower end.
As a buyer, you don’t want to spend more money than necessary to get your dream home. But from the seller’s point of view, they don’t want to sell it too short, so they will most likely prioritize an offer with the higher bid.
Start with the fairest offer you can give for the house.
Now that you know the average price of property in the same area, it’s time to pitch accordingly. Before making an official offer for the house you’re interested in, make sure to talk to your real estate agent to give you a fair view of how much the seller wants to sell their house. Get yourself the leverage to bargain at the fairest price for both parties.
At this stage, your main goal is to get the seller interested in selling the house to you. There’s always room for negotiation, but it won’t be possible if your offer doesn’t fit the criteria. So, be sure to make a fair offer when buying a house to get a conversation started with the seller. Think about the win-win solution for both buyer and seller, just to complete the transaction.
Tips to Get Your Offer Approved
Now that you’re ready to make an offer on a house you’re interested in buying, you may want to maximise your chances of getting your house offer approved. The bidding war in the house market can be challenging, and it can be especially difficult if you’re a first-time home buyer.
Here’s a checklist you can use to put yourself in a stronger position as a potential home buyer!
- Work closely with your real estate agent, as they play an essential role in connecting you with the seller.
- Be clear about your background. Don’t hesitate to share your future plan with the seller on how you want to move and start a new beginning on their property. Sometimes the number in your offer itself isn’t enough to secure the house. Some sellers want to connect with the potential buyer first, so be ready to get into details on why you’re interested in their house.
- Clinch the deal by adding a few hundreds in your haggling process. Offering £300,500 will give you some room for negotiation to close the deal.
- Understand the seller’s motivation to use it to your advantage. Sometimes it’s not always about the highest price, it’s about to pass on a property that has a sentimental value.
- Ask for a second viewing to show that you’re serious about making an offer. It will also help you double check all the details about the house before making a final offer.
Conclusion
Making an offer when buying a house is a crucial move. The negotiation process can be tricky yet exciting at the same time, since a house can contain emotional attachments for both the seller and potential buyers.
As a buyer, be prepared to get into details to convince the seller that you’re the right person for the house. Be fair when making an offer so the seller can put you at the top of their mind in their final decision to pick a buyer.
Once your offer is accepted, Which Removals can assist you with any aspect of the moving process, from packing to logistics. So, are you ready to make your first offer to buy your first house?