How to Make an Offer on a House: A Future Homeowners Guide

News at Jones Robinson | 07/09/2023

Buying a house is one of the most important decisions you will ever make. It can also be one of the most stressful and complicated processes, especially when it comes to making an offer. How do you know how much to offer? How do you negotiate with the seller? What are the legal implications of your offer? In this blog post, we will answer these questions and more, and guide you through the steps of making an offer on a house.

Why You Need an Estate Agent

An estate agent is a professional who helps you buy or sell a property. At Jones Robinson, we can provide you with valuable advice, market insights, and access to properties that suit your needs and budget. We can also help you with the legal aspects of buying a house, such as preparing contracts, arranging surveys, and liaising with solicitors.

We have the experience and expertise to help you make an offer on a house that is realistic, competitive, and attractive to the seller. We can also negotiate on your behalf and handle any issues that may arise during the process. We will act in your best interests and follow the Property Ombudsman Code of Practice, which sets out the standards and obligations of estate agents in the UK.

How to Research Local Properties

Before you make an offer on a house, you need to do some research on the local property market. This will help you determine how much you can afford, what kind of properties are available, and what are the current market conditions.

You can start by browsing our properties for sale online, to get an idea of the prices and features of properties in your desired area. You can also use online tools, such as Finder’s mortgage calculator or Confused.com’s budget planner, to work out how much you can borrow and how much your monthly repayments will be.

You should also visit the area in person and view as many properties as possible that match your criteria. This will give you a better sense of the neighbourhood, the amenities, and the condition of the properties.

How to Set a Budget

Once you have done your research, you need to set a budget for how much you are willing to spend on a house. This will depend on several factors, such as your income, savings, debts, lifestyle, and future plans. You should also take into account other costs associated with buying a house, such as stamp duty, conveyancing fees, survey fees, removal costs, and insurance.

A good rule of thumb is to aim for a property that is within 10% of your maximum budget. This will give you some room for negotiation and unexpected expenses. You should also get a mortgage agreement in principle from a lender before you make an offer. This is a document that shows how much they are willing to lend you based on your financial situation. This will show the seller that you are serious and ready to buy.

How to Make an Offer

When you have found the property of your dreams, the next step is to make an offer. You can do this verbally or in writing, but it is advisable to do both for clarity and confirmation. You should also highlight any points that make you a particularly attractive buyer, such as having no chain, being flexible on completion dates, or having a large deposit.

You should make your offer through the estate agent if the property is sold through one. They are legally obliged to pass on every offer they receive to the seller. If the property is sold privately, you can make your offer directly to the seller.

The amount of your offer will depend on several factors, such as:

The asking price of the property
The condition of the property
The demand for similar properties in the area
The length of time the property has been on the market
The motivation of the seller
The competition from other buyers

There is no definitive answer to how much you should offer on a house. However, some general tips are:

Start low but not too low. A reasonable offer is usually between 5% and 10% below the asking price.
Be prepared to negotiate. The seller may counter-offer or reject your offer. You should have a clear idea of how much you are willing to increase your offer or walk away.
Be respectful and polite. Don’t insult or offend the seller by making a very low offer or making unreasonable demands.
Be flexible and realistic. Don’t expect to get everything you want or pay less than what the property is worth.

How to Write a House Offer Letter

A house offer letter is a document that you can write to the seller to express your interest and enthusiasm for buying their property. It is not a legal requirement, but it can help you stand out from other buyers and persuade the seller to accept your offer.

A house offer letter should include the following elements:

A personal introduction. Tell the seller who you are, why you are buying a house, and what attracted you to their property.
A summary of your offer. Reiterate the amount and terms of your offer, and mention any contingencies or conditions that apply.
A statement of your financial situation. Provide evidence of your mortgage agreement in principle, your deposit, and your chain status.
A compliment to the seller. Praise the seller for their taste, style, or care of the property, and mention any specific features that you like or appreciate.
A closing remark. Express your hope for a positive response, and thank the seller for their time and consideration.

A house offer letter should be concise, sincere, and respectful. It should not be too long, emotional, or desperate. It should also not reveal any information that could weaken your negotiating position, such as your maximum budget or your urgency to buy.

House Offer Letter Template

Here is an example of a house offer letter template:

Dear [Estate Agent/Seller's Name],

I am writing to formally submit my offer of [Offer Amount] for the purchase of [Address of Property]. I have attached a copy of my mortgage agreement in principle from [Lender Name] as proof of my ability to obtain financing for this amount.

I am very interested in this property and believe that my offer is fair based on the current market conditions and the condition of the property. I have taken into account any necessary repairs or renovations that may be required.

If my offer is accepted, I am willing to move forward with the purchase as soon as possible and am available to discuss any further details or answer any questions you may have.

Thank you for considering my offer. I look forward to hearing back from you soon.

Sincerely,

[Your Name]

How to Handle House Offers

Once you have made an offer on a house, you will need to wait for the seller’s response. They may accept your offer, reject it, or make a counter-offer. They may also ask for more information or time to think about it.

If the seller accepts your offer, congratulations! You have taken a big step towards buying your dream home. However, this does not mean that the deal is done yet. Your offer is still subject to contract and survey, which means that either party can withdraw from the transaction without penalty until contracts are exchanged.

If the seller rejects your offer, don’t be discouraged. You can either make a higher offer if you can afford it and really want the property, or look for another property that suits your needs and budget.

If the seller makes a counter-offer, you will need to decide whether to accept it, reject it, or make another counter-offer. This may involve some back-and-forth negotiation until you reach an agreement or decide to walk away.

If the seller asks for more information or time to think about it, be patient and respectful. They may be waiting for other offers or dealing with personal issues. You can follow up with them after a reasonable period of time, such as a few days or a week.

During this stage of the process, it is important to communicate clearly and promptly with the seller and the estate agent. You should also keep an eye on the property market and be aware of any changes that may affect your offer or decision.

How to Secure Your Offer

Once you have agreed on an offer with the seller, you will need to take some steps to secure it and move forward with the purchase. These include:

Instructing a solicitor or conveyancer. They will handle the legal aspects of buying a house, such as preparing contracts, conducting searches, checking title deeds, and transferring funds.
Arranging a survey. This is an inspection of the property by a qualified surveyor who will assess its condition and value. There are different types of surveys available depending on how thorough you want them to

be, such as a homebuyer report or a full structural survey. A survey will help you identify any potential issues or defects with the property that may affect your offer or decision.

Applying for a mortgage. This is when you submit your full application to your lender and provide them with all the necessary documents and information. They will then conduct a valuation of the property and a credit check of your financial situation. They will then decide whether to approve your mortgage and issue you a formal offer.
Exchanging contracts. This is when you and the seller sign and exchange the legal contracts that bind you to the sale and purchase of the property. You will also pay a deposit, usually 10% of the purchase price, to the seller’s solicitor. This is the point of no return, as you will lose your deposit and face legal action if you pull out of the deal after this stage.
Completing the purchase. This is when you pay the remaining balance of the purchase price, usually 90%, to the seller’s solicitor. They will then transfer the ownership of the property to you and hand over the keys. You can then move into your new home and celebrate!

How We Can Help You

As you can see, making an offer on a house is not a simple or straightforward process. It involves a lot of research, negotiation, communication, and paperwork. It can also be very stressful and emotional, as you may face challenges, setbacks, or disappointments along the way.

That’s why you need an estate agent who can help you navigate this process and achieve your goals. As an estate agent, we can:

Help you find the right property for your needs and budget
Advise you on how much to offer and how to negotiate with the seller
Represent your interests and act as a mediator between you and the seller
Handle any issues or problems that may arise during the process
Keep you updated and informed at every stage of the process
Work with your solicitor, surveyor, lender, and other professionals involved in the transaction
Ensure that everything goes smoothly and efficiently until completion

We are not just estate agents, we are your partners in buying your dream home. We have the knowledge, skills, and experience to make your offer successful and your purchase enjoyable.

If you are interested in buying a house in Berkshire & Wiltshire or any surrounding areas, please contact us today. We would love to hear from you and help you make an offer on a house.

Conclusion

Making an offer on a house is one of the most exciting and important steps in buying a home. It can also be one of the most challenging and complex ones. That’s why you need to do your homework, set your budget, make your offer, handle offers, secure your offer, and work with an estate agent who can guide you through this process.

We hope that this blog post has given you some useful tips and insights on how to make an offer on a house in the UK. If you have any questions or comments, please feel free to leave them below or contact us directly.

Thank you for reading and happy house hunting!