Last blog I shared our adventures in house hunting. We saw three properties and liked one of them enough to make an offer. Unfortunately, after a few days deliberation we received news from the estate agent that the vendors had moved forward with somebody else’s offer.
Having reflected on it, I’m not too surprised at this outcome and there are definitely a few things we’re going to do differently next time.
Do your homework!
Don’t just research the home that you’re viewing before making an offer. Spend time learning about the neighbourhood. How much have similar properties in the area sold for? How long ago were they sold for? How long were they on the market before selling?
We went to the viewing not really knowing what to expect or really what we were looking for. The house had a few features that made it particularly desirable (big garden and garage) and there weren’t many other properties for sale like it in the area. It had only been on the market two weeks when we jumped in and offered 7% lower than the asking price. The estate agent warned us that there were other offers that were higher but we thought blind optimism could win the hearts of the vendors.
How low will the vendor go?
The seller has probably done their research when putting their home on the market and has their own bottom dollar that they won’t go below. Perhaps they require a certain amount in order to afford their next house, they are mortgage-free and can afford to wait for a higher offer or they are going through a divorce or other major life event. Maybe they just believe that the property is worth more than your offer. At this stage, you can return with a higher counter offer.
Not having an Agreement in Principle
Our offer was made rather hastily so we didn’t have an AiP (despite me writing a post about them recently!). Thankfully we were able to get one quite quickly so this aspect did not let us down.
Once you put your offer in, all you can do is wait and see if the vendor will accept but with a bit of pre-planning and research, you will be able to increase the chances of your offer being accepted.