So you’ve found a house you want to buy, hurrah! Next comes the slightly trickier part – putting in an offer and getting it accepted.
Here’s a brief guide on how to navigate your way through the offer process – what to do and what to look out for.
Before you book a viewing
By speaking with a mortgage adviser before viewing a house, you can be sure that you know it’s within your budget. A mortgage adviser can also give you a Decision in Principle (DIP) which proves to the seller that you should be able to get a mortgage.
Our Newcastle-based mortgage advisers can offer a free, initial no obligation appointment at a time to suit you, including evenings or weekends.
Before you make an offer
Before you do anything, take some time to have a think about how much you’d like to offer. Consider your budget and work out what the maximum amount you can offer is (in case you go in with a lower figure first and the seller rejects it). It may also be worth considering the cost of any large-scale works that need to be carried out straight away, such as fixing the roof, replacing windows or treating damp.
Making an offer
This is usually done via the seller’s agent. Once you’ve made your offer, the agent will take it to the seller for consideration and come back to you with their decision.
If your first offer is rejected and you want to go back to the seller with a higher offer, remember to stay within your budget – there’s no point in the seller saying yes if it’s to a number that you can’t afford.
If you’re a first time buyer, cash buyer, or not part of a chain, make sure you let the agent know when putting in your first offer. This puts you in a more favourable position when negotiating, as you can move through the buying process more quickly.
You should always make an offer ‘subject to contract and survey’ to ensure that you have the opportunity to have the house checked over before you’re legally bound to the purchase.
Beware of gazumping
Gazumping is the term used when a seller takes an offer on their house after they’ve already accepted one from someone else. This is most likely to happen when the housing market favours sellers over buyers, for example if the number of houses for sale is low and the number of buyers is high. Gazumping is completely legal and at the discretion of the seller, however it can be upsetting for buyers who risk losing out on their dream home.
To prevent this from happening, you should tell the estate agent that your offer is subject to the house being taken off the market straight away, if the seller accepts it, and ask them to confirm this to you in writing.
Offer accepted
Congratulations, you’re one step closer to owning your new home! You’ll need to provide the seller’s estate agent with documentation so that they can take the house off the market – this is usually your DIP, photo ID and proof of deposit.
After this, it’s time for your mortgage application, property valuation / survey and legal searches before signing contracts to complete the sale.
Giving you the best chance of getting your offer accepted
Our mortgage advisers in Newcastle have access to mortgage products from more than 90 lenders, meaning there’s plenty of opportunity for them to help find the right option for you. Not only that, as experts in the local property market, they’re on hand to guide you through the process of making an offer; whether that’s supporting you when making an offer, or making an offer on your behalf.
If you’re currently looking for a new home and would like to get some mortgage advice to help you get started, get in touch to arrange your free, initial no obligation appointment with an adviser by calling 01914 018229 or send us an e mail.
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