How much should you pay for a property?

June 9, 2016 by Brendan O'Neill

Borrowers

Buying a new home is a stressful experience, often from the very start. Once you find a property which you are interested in, you then have to decide how much to offer. Do you offer the asking price, or a little more, or maybe you think that you could have a lower

offer accepted? You are at risk of paying too much for the property, or offering a sum which is too low and someone else will come along and offer more.

Before you start looking for a property, look at similar homes in the area so you can compare prices. Take into account the size of the property, number of bedrooms and the condition of the property. By doing some research before you start looking for a new home, you will have an idea of how much you should offer for a property.

Sellers often put a property on the market for a higher price so that if a buyer offers a little less, they are still getting the price they originally wanted. You could consider offering around 10% less for a property, although there is still a risk that someone else will offer the asking price.

Once you have had a survey done on the property, you may want to consider reducing your offer if there’s any major work which needs doing. Check whether the property has recently been on the market so that you can decide whether the owner may be willing to accept a lower offer.

A CeMAP-trained mortgage adviser may be able to help you decide on an offer which will give you the best chance of securing the property.