Making an Offer on Property

Making an offer on a property is both fun and daunting at the same time.

If you really like a property and are desperate to buy it, then it can also be a game of holding your nerve or trading off how much you want that property versus what you are prepared to pay.

First of all, only make an offer on a house if you are genuinely interested and want to buy it. Don't do it trying to sniff out a bargain because your heart needs to be in any property purchase.

For most of us, it makes sense to offer around 5 - 10% below the asking price as an initial offer and then see what happens. It is often quite easy to tell early on in price negotiations the factor that affect whether the owner will budge on price:

- how quickly they want to move
- how many offers they have had
- whether they are selling for money or because they are moving on

In other words, how much power you have versus the vendor when it comes to the price that you pay.

If you see a house that you really like, then consider that it might actually be worth offering the full asking price right out. Although you might think this deprives you of a bargain, for your dream home it also means that if someone else offers full price when you come in low, then you could be blown out of the competition for the house and risk losing it... so it really is a bit of a game of chance!

Also remember that the vendor may respect you for coming in with what they see as a fair price from the off, and reduces the time for you to be gazumped too! And when an offer is accepted ensure the property is taken off the market and a sold board goes up to put others off trying to gazump you - you want piece of mind once your offer is accepted!

Buying Property

Mortgages

Buying Overseas

Tools and Resources

Making an Offer on Property

House Prices