Before putting in an offer you need to some research about the area and also ask the estate agent some questions.
Research similar properties in the area
Do your homework before you place an offer so you go into the process comfortable and confident.
Research the asking and sold prices of properties of a similar size and type in the area that you are looking to buy. This will help you to better understand the local market and will hopefully make you feel more comfortable that the price that you’re willing to pay is the right one for you and the area you are buying in.
The following websites will be able to assist you and it will also give you an idea of how often properties are sold in the area
QUESTIONS TO ASK THE ESTATE AGENT
The estate agent is there to work for the seller, not for you, but they can still be a very useful source of information.
How long has the owner lived at the property?
If they’re moving out after a relatively short time, ask why. If they’ve lived there for a long time, they may have a stronger emotional attachment to the property, which you should bear in mind when you put your offer in writing
Why has the owner decided to sell?
If there’s a time-sensitive reason, e.g. needing to relocate for a new job or having a baby on the way, they might be more flexible on the price.
How long has the property been on the market?
If it’s been on for a while, the owner may be willing to accept a lower offer.
Has the owner found a property to move to yet?
The answer will often be no, as many people start house-hunting once their own home is under offer. But if it’s yes, this could speed things up.
How many people have viewed the property?
This could help you understand how much competition there is. If you are the only one, you are in a strong negotiating position and the seller is likely to accept a lower price. If there are two or more parties making offers, the seller and their agent will be far tougher during negotiations and you may be sensible to offer the asking price.
Have any previous offers been made?
If so, were any accepted? The agent can’t legally tell you how much past offers were for, but they may hint at how close they were to the asking price.
What’s the minimum price the seller will accept?
The agent might not be willing to share this (and they may not know), but it’s worth asking.
Your own position will also affect the negotiation. First time buyers, people who have already sold or exchanged contracts on their own property and people who have nothing to sell all have this advantage.
if you don’t think the property is worth as much as is being asked, you can introduce this into negotiations. For example, if some repair work is needed and you think this should bring the price down, you can try to persuade the seller that the property is overpriced.
If you’d like to speak to a member of our in-house mortgage team, please book a complimentary appointment here.
Your home may be repossessed if you do not keep up repayments on your mortgage.
AAG Wealth Management is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority). AAG Wealth Management is a trading name of AAG SJP Ltd.