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Offer Letter


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Hello Hubbers,

Exciting times, finally done the research got a property shortlist (always expanding though), booked the viewings and expect to start making offers next week. Does anyone have any advice on the actual offer process? My line of thought is make it official and submit a letter rather than only verbal or a simple email. I have written up a template but some further tips/advice would be much appreciated.

Stay safe



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The law states that any verbal offer you make needs to be confirmed in writing within 24 hours anyway, so in terms of making any discussion official i wouldnt worry on that front.

From my experience in an estate agent (im not proud, i was young...) the number is the only thing that matters really.

We find however, there is a zone where two parties are not on the same number, but close enough to start looking at other things that might sweeten the deal. It might be speed, it might be assurance (ie demonstrating financial position better), it might be fixtures and fittings, it might be as simple to them liking you. So get as close as you can, do your best to understand the vendors motivations and fears, and try throw in something that might have a percieved value to the other side.

Ultimately you need to say a number thats the same or higher than the one in their head, and be prepared to walk away. Vendors are stubborn, in their head you are talking money away from them, you are forcing them to give up some features on that fancy new kitchen they already planned. Also your mortgage company is probably already going to knock 10% of what the agents told them its worth too, so bear than in mind.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Depending on the market / area you're looking to purchase in, by the time the agent receives your offer letter in the post, opens it and actually reads it, the house may have been taken off market by another offer!

Best to call them, make a 'if I was to put in an offer of £X amount, would the vendor be interested' type offer, and say you'll follow up the call by putting it in writing in an email outlining the reasons why you've valued it at that £X amount. 

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Definitely just call the estate agent. They may have an idea of what the vendor will accept and will know what offers have already been made and rejected (or accepted but then fallen through).

Decide what is the maximum you are prepared to pay - then offer lower. Most people will not accept the first offer and will assume it is not your final one. Their response will tell you quite a lot. They may come back with a counter offer - so you know if you are close - they may tell you what the are prepared to accept, or they may just say no - which suggests you are a long way off.

Don't offer too low - you risk getting the vendor's back up if they consider your offer an insult - but in my experience most vendors don't expect to get the full asking price.

If there is a reason for your offer eg the survey says there's £3000 worth of work needs doing to the roof, then use that to justify your offer.

Try to glean as much information as possible from the agent and use this to judge where to put your opening offer at.

In a fast moving market you will have to act quickly, but with a property with less interest you can play a bit of a waiting game. You don't want to appear desperate to secure the purchase but equally you don't want to lose a good house by being slow.

Remember that you shouldn't overpay, but you don't want to lose a really good house over a few quid!

It is a tricky game - Good luck!

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