Written by Polly Greenway, Director
How much should you bid when you’re ready to make an offer on a property?
It’s difficult to know how much to bid for the ‘dream house’ once you have finally found the one.
You may have just sold your own property and been thrilled at the price you have achieved. Or perhaps you have been renting, having already sold, and not sure whether to jump back into the market now or wait to see if the market cools a little. Equally, you may be trying to get on the property ladder for the first time, and in a sellers market, finding that the reality of finding the perfect property is slipping further away.
It’s not surprising that buying a house can be stressful, but there’s are a number of things you can do to put yourself in the most attractive position when making an offer on a property:
Top Tips for Making an Offer
- Make sure your financial information is readily available so you can swiftly confirm you are a reliable buyer. When it’s a competitive market, sellers are keen to ensure that the buyer they pick is going to be secure.
- Make sure you have a full understanding of your own budgetary needs: the stamp duty payment involved (it varies according to price and whether it’s your main home or not), likely legal fees and potential removal costs.
- Check to see if the property is on a private drainage system and that it is currently compliant. It’s important to understand all the sizeable costs, which need to be taken into consideration.
- Consider your own experiences. Is this the first house you have viewed? Have you been keeping an eye on the market and sales prices achieved for other properties? The market is moving swiftly, so keep up to date and ensure your understanding is still current.
- Is this a reasonably temporary move or is this going to be your next home for a good number of years? If the latter, paying what may be perceived as ‘over the odds’ now, may well pale into insignificance over a period of years. Buying the property now may ensure you keep your own buyers on track (a sensible concern if they are paying an attractive amount) and it also avoids paying rental income if you are forced to rent instead. However, buying a house is a costly exercise so, equally, you want to make sure you don’t make an obvious mistake.
…………Then the big question: how much should you bid? And should you offer above the asking price in a competitive situation?
- Just remember, NEVER try and second guess what the best bid might be and try and beat that. It’s only natural you should want to bid just enough to secure that property, but that’s where disappointment so often lies.
- Work out the ‘sweet spot’ of where that bid lies for YOU. Think hard about the level you put forward and bid at a level that if you were subsequently told you had lost the property you don’t wish you had bid that little bit more. The ‘sweet spot’ is when you think ‘ah well, if we don’t get it, we’ll have done our best’. That’s the bid to choose. Good luck!
Thinking of your next property move? Contact the team at DOMVS to find out how we can help on 01305 757300.