How to make an offer: Top 5 tips for First Time Buyers

by Megan Addy – Director | Independent Mortgage & Protection Adviser @ Prism Mortgage & Protection Advice

Buying your first home is a big step. It’s an exciting time but can feel daunting too, especially when it’s time to make an offer on a place you’ve fallen in love with.

Have you ever thought the highest offer always wins? Think again. It’s a common misconception, but the truth is, sellers are often looking for value not just in the offer itself but in the buyer making it.  This means understanding the offer-making process is key, not just to make your offer stand out, but to increase the chances of it being accepted.

How do you become the buyer sellers are eager to work with? Below are some invaluable tips aimed at helping first-time buyers like you navigate this crucial stage, ensuring you’re ready to make your dream home yours.

Get an Agreement in Principle from a Mortgage Adviser

One of the most important steps you can take before making an offer is securing an agreement in principle (AIP) from an Independent Mortgage Adviser. An AIP, essentially a pre-approval from a lender, provides a clear indication of how much you could be able to borrow based on your financial situation. This step not only demonstrates to sellers that you’re a serious and prepared buyer but also gives them confidence in your ability to secure the necessary funds. The assurance that you’re financially ready can make your offer more appealing compared to those from buyers who haven’t taken this step.

Working with an Independent Mortgage Adviser offers the added advantage of personalised advice and support throughout this process. We have in-depth knowledge of the market and can guide you to the most suitable and cost-effective mortgage products tailored to your unique financial needs, making the homebuying process smoother and more efficient.

Follow up verbal offers with a written confirmation

While making a verbal offer to the estate agent is a common practice, following it up with a written confirmation is a must. Always send an email to the estate agent confirming your offer amount, the breakdown of your mortgage versus deposit, and the fact that you’re employing the services of a mortgage adviser. This will ensure that none of the details are missed when the information is relayed to the seller.

Express your enthusiasm for the property

When following up your offer with a written communication, don’t hesitate to express why you’re interested in the property. Whether it’s the home’s character, its location, or how it feels like the perfect fit for your needs, sharing these thoughts can resonate with the seller, especially if they’re sentimental about their home. They’ll want to know their home is going to someone who appreciates it as much as they do.

Highlight your position as a First Time Buyer

As a First Time Buyer, you’re in an advantageous position. Without a chain of sales behind you, you’re often viewed as a more attractive prospect since the deal is less likely to fall through due to complications with a previous sale. Make sure to emphasise this in your communications. Being chain-free can make your offer stand out, especially in competitive markets where sellers are eager to avoid complications and delays.

Communicate effectively and be responsive

The property buying process, from offer acceptance to completion, typically spans 3 to 4 months. Therefore, showing clear and consistent communication with the estate agent and seller from the get-go is vital. Demonstrating that you’re responsive and easy to work with can significantly impact the seller’s perception of you as a buyer – It can build trust and confidence, making sellers more comfortable with proceeding with your offer.

Conclusion

Making an offer on a property as a First Time Buyer involves more than just stating a price. It’s about demonstrating your readiness and communicating effectively. By securing an Agreement In Principle, ensuring clear communication, emphasising your chain-free status, and expressing your genuine interest in the property, you can make your offer more appealing.

These steps not only increase the likelihood of your offer being accepted but also set a positive tone for the rest of the purchasing process.

Remember – Sellers don’t always accept the highest offer. They’re often looking for a combination of the most competitive offer backed by the most reliable buyer.

Ready to take the first step towards securing your dream home? Contact our experienced mortgage advisers today. We’re here to help you navigate the process, from obtaining your Agreement In Principle to making your offer stand out. Let’s make your homeownership dreams a reality.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

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