Making an offer

The offer process will be heavily influenced by local market conditions. Estate agents will list properties at an asking price based on their experience of similar properties in the local area. This should give a good guide as to how much the seller is expecting.

Market conditions

If the market is slow or normal, the offer process will likely involve submitting your offer to the estate agents and negotiating until you reach a price that both you and the seller are happy with.

You may be bidding against other potential purchasers. If this is the case, it is sometimes the case that your first offer will be rejected. Try not to get disheartened at this. If it’s within your budget and you think it is worth the money, it might be worth increasing your offer. However, do not be tempted to offer above what you can afford. There will be other properties and it is generally not worth overstretching yourself.

Make sure the estate agent is aware of your situation. The ability to move quickly can be very attractive to sellers and estate agents.

Make sure you have your mortgage in principle, your conveyancer lined up, and your deposit in place. Make sure the seller knows whether you are in a chain, and, if so, what are the timescales.

Different offer processes

In buoyant markets, many other offer processes may be used by the estate agents. We’ve summarised the most common ones below, but if you aren’t sure how it works, don’t be scared to ask the estate agent.

Modern method of offer – Bidders will submit offers until no more offers are forthcoming. At this point the price is agreed. This differs from a traditional auction in that you do not commit to purchase there and then. There will usually be a reservation fee payable, although this is not the same as a deposit and will not be used towards the house purchase. It is normal for you to be given a set amount of time after the auction to exchange contracts and a set amount of time after this to complete.

Sealed bids – this involves putting your best bid in an envelope and submitting to the seller. This is usually done to encourage people to go straight to their best bids and can result in offers above the asking price. Your bid should include all aspects of your offer, including whether you are a cash buyer, the size of your deposit, whether you are in a chain etc. Whilst the seller will usually just choose the highest price, if there are multiple similar bids, your situation and ability to move quickly may tip the matter in your favour. As above, do not be tempted to bid more than you can afford. You may miss out on this property, but there will be others.

Best and final offer – this is essentially the same as a sealed bid. It is usually requested after a period of bidding if there are a few people interested in a property. Estate agents will request a best and final offer as a way of speeding up the sale. As with sealed bids, your offer should include all of the aspects of your offer so as to attempt to convince the seller that yours is the most attractive. The same advice applies as above, be mindful of what you can afford and do not be tempted to overpay.