A First-time Buyers Guide to Making an Offer

If you’re a first-time buyer and have begun the hunt for your first home, you may think that once you’ve found the right one you simply offer what they ask for; job done! However, when it comes to making an offer on a home, there’s a bit more work that should go into it than simply offering the price advertised.

You need to be confident when making an offer that you’re not going to be stung by an inflated asking price or take yourself out of the running by offering too low. To help you prepare, we’ve put together the following information to help you through this stage of the home buying process.

Get some advice
The first and arguably most important step you need to take is speaking to an expert. If you’re a first-time buyer, then you probably don’t have a wealth of knowledge on how the market works and what you can and can’t afford. Get in touch with a mortgage advisor, get informed on how it all works and more importantly, find out what your price range is so when you do make a formal offer you can do so with confidence.

Research the local market
Once you know how much you’ll be able to spend, it’s time to get a better understanding of your local market. The more research the better. Take a look at what’s up for sale and find out what your budget will get you in each area.

Build a list of key features that your home will need, such as the number of bedrooms or a driveway. The chances of you moving into your dream property with your first move are somewhat slim; however, it’s important that you know what you’re looking for and how much it will cost you in each area.

It would be wise at this point to get in touch with a local estate agent. You can do as much research as possible, but a good local agent will always be a benefit as they will know the market like the back of their hand. This means that they can fill you in on what to expect from vendors and hopefully help you avoid any pitfalls.

Get out there and book some viewings
Now that you’ve done your research on what you want, what you can afford and what the market has to offer, it’s time to book some viewings and get out there. Things can move very quickly in the property market, so your previous work and research leading up to this point will come in handy as there’ll be no time wasted travelling to unsuitable areas or over-priced properties.

While viewing properties, be sure to check out the building's structure and not just its décor. Check for any damage such as cracks in walls or damp. Make sure you understand exactly what you’re getting into and have a good idea of the current state of the home as it can help form your offer.

When you find the right home, be ready to act!
If you’ve managed to find the right home, then it would be best to act quickly as there’s a good chance you’re not the only one eyeing up that house. If you’re ready to make an offer, consider a few things before doing so. How much do other similar properties go for in the area? Does the property need some repairs? Have house prices dropped slightly since the home was first put on the market? We’d all love to knock a few thousand off the asking price, but the seller isn’t going to make such a concession easily, so if your offer is lower than the asking price, you’ll need to demonstrate why.

The Final Steps
Now before you finally put your offer on the table, try and organise all the other pieces of the puzzle beforehand so you are ready to go as soon as it’s accepted. If you’re a first-time buyer then one of your major benefits is that you don’t have to organise selling your own home, but if you can organise such things as surveys and solicitors then it’ll make the process much smoother.

What are buyers prioritising when looking for a home?

Good schools, good commuter links and a good kitchen; traditionally, this is what has been considered to be the magic triad of priorities for buyers. However, new research has suggested that this is no longer the case. Read on to see what buyers are prioritising whilst on the hunt for a new property…

A poll from a regulated property buyer has shown that a budget supermarket has ousted the school catchment area for one of the top spots in buyer priorities, with almost 40% of those surveyed stating their desire to live within close proximity to an Aldi or Lidl. School catchment areas remain high on the wish list of buyers with 29% saying that they would move home in order to be in a specific catchment area.

The desire for good-value shopping could be linked to the need to economise after purchasing a new property, so it is no surprise that it is the younger generations who rate the budget supermarket highest; some 54% of 18 to 24-year olds want to live near to one. This figure gradually declines to 34% of over 45s sharing the same view.

The outright top spot on buyer priorities, however, is for a scenic view with 44% of people preferring a property with scenic surroundings. Budget supermarkets follow this in second place, and local bars and restaurants come in at third in the wish list of buyers.

“Everyone has their own priorities when moving to a new house, but it’s interesting to see how the overall patterns are changing. Budget supermarkets are definitely growing in popularity, especially among the younger generations, and their presence in a region is now making a place more desirable to live,” said Ross Counsell, director at Good Move.

Once a property move is completed, research also revealed what people first investigate once they have moved to a new area. Public transport links are the first item which people look into with 21% of people researching this immediately, followed by local schools, crime rates and broadband speeds.

What are the top things that can devalue your home?

One of the key things we focus on when we own a home is how to add value to the property and make it more sellable for the future. However, a question which will also help you to achieve your property’s best potential is what are the top things that will devalue your home? Here are some of the key factors that National Association of Estate Agency (NAEA) members have experienced as having a negative impact on property value.

1) It’s all about personality
We all have our own taste and style, or lack thereof and of course the desire to make our homes reflect our personalities is only natural, but personal tastes can become a sticking point when it comes to selling up. Maybe you love a particular football team, or you think that glitter is an absolute necessity in the bathroom, and if that is the case then the NAEA recommends redecorating before taking your home to market. Homes which are decorated in more neutral colours are typically the most saleable as buyers can envisage how their possessions would look in the space.

2) Tip-top or big flop?
If your property is in tip-top condition, then it goes without saying that the value of your home will remain strong – and the desirability factor will certainly come in to play as people like to buy properties which they can move straight into without having to do any work. Not only will the photographs which market your property look better, but viewings will also certainly go more smoothly if your home is in good condition; having to explain cracks in the wall, single-glazing or peeling wallpaper can be a deal-breaker. Similarly, the basics of ensuring your home is clutter-free, clean and fresh-smelling will all aid in your quest to gain the best possible price for your property.

3) In the deep end
A swimming pool may sound like an attractive feature, and the cultural kudos of having such a feature may seem alluring at first, but the NAEA has shown that a pool is, in fact, a hindrance. With the famed British weather not being particularly conducive to a pool, buyers often see pools as an expense due to their maintenance fees and the volume of space they take up. If you do have a pool that isn’t being used, then it may be a good idea to fill it in and eradicate the potential problem that buyers see when they come across the feature. On the other hand, if your pool is in good condition then selling in summer when it looks its best and buyers can imagine themselves making the most of it could be a positive selling point.

4) Permission granted
Often, increasing the size of your property is a sure-fire way to add value to it, with the extra floor space also very attractive to buyers. Extensions and additions can become a headache, however, if you do not have the appropriate planning permission and building regulation documents. If you do not have these documents, then prospective buyers will often request for them before agreeing to a sale, meaning you will have to pay for them retrospectively.

5) Knot a good sign
Japanese Knotweed (Fallopia japonica) is a fast-growing invasive weed which is extremely difficult to eradicate, making it quite the nuisance. With its aggressive characteristics, Japanese Knotweed can significantly damage the foundations of a property thereby making it at risk of subsidence and potentially causing thousands of pounds of damage. Due to the difficulty in getting rid of the weed, many buyers would be put-off of a purchase if they were cognisant of its presence in a property.

“The house-moving process is undoubtedly stressful, so it’s important to know what could add value to your home and what might detract or even completely put off potential buyers,” Mark Bentley, president at NAEA Propertymark, commented.

Bentley concluded: “You can ask friends or family for their honest opinions, or your estate agents can help advise on any small changes you may want to make before placing your home on the market.”