First-Time Buyer? 7 Things to Do Before Making an Offer
Buying your first home is exciting, but when you find a property you love, it can be tempting to make an offer straight away. Before you do, though, there are a few important things you should have in place.
Being prepared can not only make your offer stronger, but it can also help prevent delays and problems further down the line.
Here are 7 things we recommend doing before making an offer on your first home.
1. Know exactly what you can afford
Before you start looking at properties, you should have a clear idea of your budget. It's not just about the maximum mortgage you could potentially borrow. Think about what monthly payment you would be comfortable with alongside your other expenses. Remember to factor in:
- Mortgage repayments
- Council tax
- Utilities
- Buildings and contents insurance
- Service charges or ground rent if applicable
- Maintenance and repairs
- Moving costs
Just because a lender says you can borrow a certain amount doesn't necessarily mean you should spend the full amount.
2. Get a Mortgage in Principle
A Mortgage in Principle, sometimes called a Decision in Principle or Agreement in Principle, gives you an indication of how much a lender may be prepared to lend. It doesn't guarantee you'll get the mortgage, but it gives you a much clearer idea of your buying power. It can also make your offer more credible to the seller and estate agent because you have already started the mortgage process. If you haven't arranged one yet, speak to a mortgage adviser before making an offer.
3. Have your deposit ready
Knowing how much you have available for your deposit is essential. But remember, your deposit isn't the only money you'll need. You'll potentially also need funds for:
- Solicitors' fees
- Mortgage fees
- Survey costs
- Stamp Duty, if applicable
- Moving costs
- Initial repairs, furniture or decorating
Don't put every penny you have into the deposit and leave yourself with nothing for the costs of actually moving.
4. Choose your solicitor
This is one that is often overlooked.
When your offer is accepted, things can move quickly. Having a solicitor already chosen means you can instruct them immediately rather than starting your search after your offer has been accepted. Ideally, choose someone who regularly deals with residential property transactions and understands the local market. A cheap quote isn't always the best option if communication is poor or the transaction takes longer as a result.
5. Do your homework on the property
Before making an offer, look beyond the photographs and the asking price. Think about:
- How long has it been on the market?
- Has the asking price changed?
- How does it compare with similar properties that have sold nearby?
- Are there any obvious works required?
- Is it leasehold or freehold?
- If it's leasehold, how long is left on the lease and what are the service charges?
The more you understand about the property before making your offer, the more confident you can be about the figure you're prepared to pay.
6. Understand the seller's position
This is particularly important in the current market. You're not just buying a property — you're negotiating with a seller who has their own circumstances and timescales. Ask the estate agent:
- Have they found their next property?
- Is the property chain-free?
- Are they looking for a quick sale?
- How long have they been on the market?
- Have they received any other offers?
- What timescale are they hoping to work towards?
Sometimes the strongest offer isn't necessarily the highest offer. A buyer who is a first-time buyer, has a Mortgage in Principle and can move quickly may be more attractive to a seller than another buyer offering slightly more but with a complicated chain
7. Know your offer — and your limits
Before you make an offer, decide what you're comfortable paying. It's easy to get caught up in the excitement, particularly if you've viewed several properties and finally found "the one". But try to remain objective. Consider what the property is worth, what similar homes have sold for and what you can genuinely afford. And most importantly, decide your maximum figure before negotiations begin. That way, you're making a financial decision rather than an emotional one.
What happens after your offer is accepted?
Having your finances and solicitor ready can make the next stage much smoother. Once the offer is accepted, you'll normally need to:
- Formally instruct your solicitor.
- Submit your full mortgage application.
- Arrange any survey you want carried out.
- Your solicitor will begin the legal work and searches.
- Work through any enquiries raised by your solicitor.
- Progress towards exchange of contracts and completion.
Remember, an accepted offer isn't legally binding until contracts have been exchanged. This is why keeping communication moving between your mortgage adviser, solicitor, estate agent and the seller is so important.
Finally, don't be afraid to ask questions
Buying your first home can feel overwhelming because there are so many new terms, processes and decisions involved. That's completely normal.
A good estate agent should be there to guide you through the process, explain what happens next and help keep the transaction moving. If you're a first-time buyer thinking about making your next move, getting prepared before you make an offer could make all the difference. And when you do find the right property, you'll be in a much stronger position to make an offer with confidence.
