After all the great efforts and plans, once you have finally found the perfect property to build your dream home, the next important step comes in preparing an offer.
Here are the steps to carry out the process properly or you can simply get our sample offer letter to purchase property below:
Step 1 : Do some research
- Make sure to carry out the proper research. Check what the property is truly worth by comparing the house prices for similar properties in the same area.
- Make a note of any obvious faults or repairs that you noticed while viewing the property, as you can put this in order to lower the pricing.
Step 2: Make sure how much you can manage
- Get a Decision in Principle from your lender. You are required to provide a copy of this to your solicitor so that the broker can get insist that you are serious.
- Confirm how much you are needed to pay out for legal and survey fees for your mortgage and deposit. If the property needs work consider costs for specialist reports on property conditions.
Step 3 : Get organised
- Have your solicitor in place so that you are able to provide the estate agent their details at the same time as putting forward your offer. (get this free sample offer letter to purchase property)
- Provide your full contact details and the best times and ways to contact you.
Step 4: Be personal to get ahead
It helps to emphasise your strengths as a buyer and your appeal to potential partners. Never always believe that paying the asking amount is sufficient.
Verify with the seller if there is anything you can use to close the sale. In cases when the seller is in chain, first-time buyers, purchasers without a chain, and buyers with pre-arranged mortgages frequently have an advantage over the majority of the market.
State around 2-3 brief sentences suggesting why you want the property and what you adore about it. Homes are considered very personal and often times a seller will accept a buyer’s offer knowing it’s going to someone who will adore it in the same manner as they did- rather than going it to a property investor.
How to make an offer on a property
- You can make an offer by any method, either in person or by phone.
- Always follow it up in written form, usually by email these days, so it is kept on record.
- It is suggested to write out the email offer letter first- then read the main points out to the estate agent on the phone.
- Make a clear statement that your offer is : Subject to contract and Subject to survey- Subject to contract: the final sale takes place only when lawyers have exchanged legally binding documents- Subject to survey means: this allows for the amount of any flaw or issues to be taken into account once your surveyor has examined the property out.
- As the final step, ask that the property is removed from the market. This minimizes the chances of someone coming in with a more appealing offer, known as gazumping.
How to Write a Winning Offer Letter To Purchase Property
Here are five top tips on writing a successful offer letter for your dream property:
1) Always provide an offer in writing
The offer must always be made in written form. An email is fine. The estate agent is then responsible to put this forward to the owner by law unless the seller has stated some conditions not to receive offers below a certain price.
2) An offer
An offer made over the phone isn’t considered as really convincing. At the same time, experiences have shown that there can be discussions made which may be later found incorrect. Take for example, you were told by an agent a lease is over 100 years but it may turn out to be 81 years which clearly means that the premium to extend the lease will be more expensive than your expectations.
3) Add ‘subject to contract’ to any offer in writing
This clearly means that your offer is not able to bind the buyer until the solicitor has accepted the stated terms and conditions.
4) Include as much detail as possible
You must account for anything you have been informed by the estate agent. You should provide maximum information about your offer and position including whether you’re a first time buyer or cash buyer as this will always make you more approachable to the vendor. The better and informative you can make your offer look, the more likely it is to be accepted.
Provide your solicitor details and whether you’ve obtained a decision in principle from the bank.
You are required to speak to the selling agent’s mortgage broker and you may even have to do this as part of the due diligence process by the selling agent. As stated above, always involve lease length and service charge if appropriate as mortgage broker frequently get these wrong.
5) Be as flexible as possible on timing
Generally, the seller has certain requirements and limitations related to date like a move date, new school start date etc. To get the best price you should be adaptable as much as possible.
6) Use evidence to back up your price
If you are willing to reduce the price, try to clarify the reasons why, with evidence to back up your argument. In case the property is highly priced provide comparable property sales to prove your offer is valid for the current market.
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