Save thousands on your property

Our mortgage expert explains how to get the right price for your dream home

I was talking to a client of mine the other day - I'll call her Emma - and she asked me a question that comes up quite often.

“How much should I offer on the property?”

It’s always a good question. I hadn’t seen the property, and only knew that it was on the market for £199,995 (which never fails to make me smile as £5 off £200,000 always makes a difference).

So we discussed the issue for a while. I had recently been through a fact find with Emma, and had qualified her for affordability. Emma knew that she could afford to go higher but she had a certain budget of £200,000 she didn’t want to go over - very sensible is our Emma.

The £200,000 question

So what should Emma offer?

Now I know you are all shouting figures in your head, but the question I asked Emma was “What do you know about the people that are living in the property?”

In response, I got a blank look.

Everyone has a different scenario, and it is vital that you find out exactly what the seller's situation is, as this can determine what you’re going to offer.

What you should be asking

Let’s take a look at some of the questions we should be asking the estate agents or the sellers direct.

• How long has the seller lived in the property?
• Has the seller found a new house yet?
• Is there a chain involved?
• How long has the property been on the market?
• Is it on the market with more than one agent?

Once you have identified exactly what situation the seller is in, you should next begin to think about your own position.

• Are you a first-time buyer?
• Do you have a house to sell?
• Is it on the market?
• Are you dependant on the sale?
• Can you move quickly if need be?

It's worth remembering that the more flexible you are with your turnaround time, the better your chances of getting a good offer accepted.

All of these questions are absolutely vital in determining what the right offer is.

Pick a price!

Let’s look at some different scenarios to see where you could pitch the offer.

Scenario 1

The sellers put the house on the market just two days ago. They haven’t been house hunting yet as they want to secure a sale first. They have lived in the property for three years.

Is this seller going to take a low offer? Probably not - they have only recently advertised the property, and they don’t seem to be in any rush. What's more, they have time to wait for someone else to come through the door.

If you really love this property, you are going to have to find an agreeable amount to offer, in order that the sellers are happy to take the property of the market.

Scenario 2

The sellers have had the property on the market for three months. They have found a new build property and their offer has been accepted. They have lived in the property for 15 years.

This is where your own scenario would come into play!

Related how-to guide

Sell your home

If you want to obtain the best possible price when selling your home, then these ideas should help.

See the guide

The property has been on for a while, the builder they are buying from will want a 28 day exchange and they could have quite a bit of equity in the property as they have been there for a while. Is this a good chance to make a cheeky offer?

People will also talk about whether it is a buyers' market or a sellers' market. While this should also be taken into account to some degree, the exact circumstances of the parties involved are vital in determining what price you can get for the property.

Emma has gone back to the agents to find out the answers to all of these questions before she makes a decision, as being a first-time buyer she has no chain and can move in with a quick turnaround. I will be interested to hear what her offer will be?

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