If you’re reading this blog then congratulations, you’ve found your dream home!
I want to start by saying while this may be your favourite property so far and you feel like making an offer it’s really important not to get your hopes up too high.
So many things might not work out the way you’d like… your valuation might come back and there might be too much that needs sorting out or fixing in or around the property, your mortgage application might not get accepted or your searches/enquires that your solicitor will eventually raise might come back with a report you’d hoped not to get – anything can happen. So between now and completion so don’t be disheartened if it doesn’t go the way you wanted and understand that there was probably a good reason why it fell through if it does.
When I viewed the property I did end up falling in love with I deducted all the expenditures I’d have to make as soon as I moved in (should everything go to plan). For example, I’d need to renovate the driveway because the walls were cracked and falling down, some of the skirting boards needed reinstalling and painting, there was an outbuilding in the garden that needed knocking down incase of asbestos, there were eroding gates/railings at the front and back of the house they needed replacing and I needed to install a garage. All of the renovations that needed doing were external but they did need doing as soon as I moved in, for safety purposes.
So I deducted all of these expenditures from the price the house was on sale for – which I’m not going to say because mind your business – but that was a fat £8,000 that I deducted from the asking price.
I made my offer on a Friday and it was accepted on the following Tuesday after a weekend of viewings. The vendors did have the same offer from another buyer, however, I wasn’t part of a chain so I was a much more desirable buyer.
When I viewed properties before viewing the one I made an offer on, I’d often send pics to my Dad who gave me that tip of deducting all your initial expenditures from the asking price. So when you fall in love with a house and feel like you’re ready to make an offer, make sure you make a list of what needs doing to the house such as modernising the bathroom or kitchen, installing a new boiler or heaters, plastering some of the walls that have wallpaper on them… and if you need to call labourers to find out how much this would cost, do it. Have a realistic figure of how much all this work would cost and take it away from the asking price.
Aside from deciding what you’d like to offer on a house, here are a few more things to think about when deciding on a figure to offer:
Congratulations you’ve made an offer on what will be one of the biggest purchases/investments of your life – good luck!