Ask The Experts - Top Tips For First Time Buyers
January 2025
Buying your first home is both an exciting and daunting prospect, and making an offer can be particularly nerve-wracking if you've never done it before. Getting your offer spot-on can be the difference between bagging a bargain and paying significantly over the odds for a property. If you're a first time buyer, then read on for some top tips on making an offer.
Get a Mortgage In Principle
Before you even think about making an offer on a property, it's vital that you know what your budget actually is.
Many would-be buyers make an offer on a property assuming they'll be able to borrow the amount they need, but in reality, they might come up short. However, on the other hand, you may be able to borrow more than you actually think, so you're viewing properties that are much lower than your real budget
Therefore, it's a good idea to visit a mortgage broker before making an offer so they can tell you exactly how much you can borrow. Having a mortgage in principle will also help you when it comes to making your offer as it shows that you're a serious buyer and that you're well prepared.
Do Your Research
It's worth bearing in mind that the asking price and the value of a property aren't necessarily the same thing.
Remember, sellers want to get as much money for their property as possible, and the asking price is usually the figure they're hoping to achieve, rather than the figure they're willing to accept. However for properties which are in desirable roads and don't come to market very oftern then asking prices can be over the limit.
Find out how much other properties in the area have been sold for recently, and find out how long the property you're interested in has been up for sale. Is it in a desirable area or has it recently had a major refububishment which has made it one of the most valuable in the area ? Has the price been reduced, or has it remained the same? Getting these valuable pieces of information will help you to put in an offer that's more likely to be accepted.
Play To Your Strengths
As a first time buyer, you're in a relatively strong position when it comes to negotiating, particularly if the seller is looking to move quickly. First time buyers are generally very attractive to sellers because there's no lengthy chain to consider, which means a faster buying process and potentially more flexibility on exchange and completion dates.
Therefore, don't forget to gently remind your estate agent and the seller, of your first time buyer status.
If time is an issue for them, sellers may be willing to accept a slightly lower offer from a first time buyer who has their finance in place and ready to move, than a higher offer from someone who's part of a chain.
Don't Worry If Your First Offer Is Rejected
Making an offer can be a bit of a balancing act. On the one hand, you want to get the lowest price possible, but on the other, you don't want to make an offer so low that it frustrates the seller and leaves them not wanting to sell to you.
As long as your initial offer isn't ridiculously low then don't be worried if the seller rejects it. Remember, it's all just a natural part of the negotiating process, as the seller is looking to get as much as possible for the property, and rejecting an offer isn't anything personal against you or a sign that they're offended.
There's no set rule on how much to offer, or how much you can expect to knock off the asking price, but if you're in two minds about making a offer, ask your agent how best to approach this in order to be taken seriously and not be seen as a time waster.
What Happens After A Survey
After all the property viewings and your offer has been accepted, will the sales processing start. This means instructing your solicitor who will start the neccesary searches that to get a more detailed picture of the property you're buying. It is at this point that certain flaws or issues may crop up.
For example, the boiler may have never been serviced, or the conservatory might have been underpinned. If anything comes up in your searches or survey that's likely to cost you a lot of money to sort out in future, then you may be in a reasonable position to reduce your offer or ask the seller to have the issue fixed before you commit.
It's worth remembering that buying a house will raise all sort of queries and the key is to make sure you are as prepared as possible and to take advice from the experts who you are employing. Queries and questions may happen at any point before contracts are exchanged.
If you are a first time buyer and you have questions about the buying process, give us a call for help and advice. Kerr and Co Residential are your local property experts for Hammersmith Shepherd's Bush and surrounding areas area. Call us on 0208 743 1166 or email [email protected]