9 steps to securing your dream home

Some properties are advertised at a fixed price (especially in Scotland). Most, however, are advertised as “offers over”. Either way, this is just an indication of what the seller wants.

It’s up to you what you actually offer. With that in mind, Simon, Sales Manager at Manchester Estate Agents; Indlu shares his expertise on working out the right offer for a property.

Start with what you can afford

There are two good reasons to get preapproved for a mortgage. The first is that it marks you out as a serious buyer. The second is that it shows you clearly how much you can really afford.

Do your research thoroughly

There are three areas you need to research. These are the local micromarket, the property itself and the seller.

The local micromarket

National average house prices are unlikely to be of any real help when you’re trying to work out how much to offer on a house. In fact, average house prices in any given city or large town are, at best, going to be of limited use. Any large urban area is going to contain a wide range of micromarkets, each with its own characteristics. This is what you need to research.

The property itself

If you’ve done your research on the local micromarket, you’ll have a good idea of average prices for different property types. Now you need to figure out how any specific property stacks up against the average. Remember, that certain features typically carry a price premium.

These include:

• Access to good schools
• Access to green spaces
• Private gardens (including communal ones)
• Potential for extension (especially if there is planning permission)
• Access to parking/transport links

The seller

In the real world, sellers fall into one of two broad categories. These are sellers who are focussed on price and sellers who are focussed on convenience. If a seller is focussed on price, then you’re usually just going to have to put in your best offer and hope it’s good enough. If, however, a seller is focussed on convenience, then you may have some room to manoeuvre.

There are two reasons why a seller might be prepared to sacrifice profit for convenience. Firstly, a seller may have bought a new house already. If so, then they’re currently paying for the maintenance of two properties when they only need one. What’s more, they’ll have had to pay the second property SDLT surcharge and will only get it refunded when they sell their old home.

Secondly, all sellers are selling for a reason. In most cases (not all), that’s because they need or want to move. This means that it’s usually very much in their best interest to get the sale concluded as quickly as possible.

This allows you to impress the seller by making them aware of how you can make their life easier. There are three ways to do this.

Prove you can afford the property

Smart sellers will be well aware that offers are only as good as the money behind them. Even if they’re not, competent estate agents definitely are.

Prove that you can move quickly

Buyers without a chain are vastly preferred to buyers dependent on selling their own property. If you want to buy before you sell, then it’s highly advisable to get mortgage preapproval on that basis.

Show that you want to move quickly

Explain your reason for moving to give the seller confidence that you’re as eager to complete as they are.

Offer a fair price

Once you’ve done all your research, put in the offer you think is right for the property. Don’t worry if it’s on, above or even below the asking price. Explain why you think the offer is fair and leave the seller to respond. It’s up to you if you are willing to negotiate afterwards. Just make sure you think each decision through carefully so you avoid being dragged into “price creep”.