Ensuring a dream property becomes reality means securing its purchase: it’s that simple. The process of buying property in the UK can, to that end, be a reasonably straightforward transaction - if the process is navigated smartly and efficiently, with savviness and support.
Here is our guide to making an offer on a house and getting the deal done without delay.
Financial Readiness
Being prepared to share comprehensive documentation which shows the source of capital being used to make a purchase is vitally important. Estate agents will ask for this at the earliest opportunity, if they know you are serious about the property; you can also be safe in the knowledge that they are duty-bound to handle this, and your identity, discreetly. A specialist conveyance solicitor needs to be appointed to implement the purchase - they will provide expert advice on all matters, including - for non-UK residents - guidance on navigating any additional regulations related to tax and legal matters. In short, however, foreign buyers are subject to the same property ownership regulations and taxes as UK residents, and there are no specific residency requirements for buying property in the UK.
Research The Market
An important element of assessing your purchase tactics is to look at recent sale prices of similar properties in the area: utilise all resources, including Rightmove, Zoopla, and the Land Registry website. Context dictates so much. Some ‘sold’ prices don’t always make immediate sense, but the condition of the property can swing the amount, sometimes even by hundreds of thousands of pounds (think complete ‘doer upper’ versus very high-spec). A good knowledge of what else has sold in the area, and how quickly (or otherwise), will showcase that you know the market well and are serious about the property you desire.
How Much To Offer
Having a bidding strategy is crucial. It isn’t commonplace for first offers to be accepted and the agreement made there and then - certainly not at the top end of the market. As such, first offers are typically 5-10% below the asking price, but this depends on demand. Sometimes - especially with desirable houses on desirable roads in desirable areas - your first offer has to be your ‘best and final’, because the demand is so high that the agent can dictate a scenario where it comes to sealed bids. Consider the house, consider the market, and consider the vendor - whether they are in a rush to sell, or not. They might well hold out for a higher price, whereby a high offer might convince them to expedite the process and accept. Only offer above the asking price if you know this has been met elsewhere, or if you are worried about losing a once-in-a-lifetime dream home amid fierce competition.
Making The Offer
Offers are always made through the estate agents, and you must provide confirmation in writing (via email). Agents are legally bound to put your offer to the vendor, so there is no chance it will not be considered. Details to include in the written offer are: the offer amount, buying position (cash buyer, etc), proof of funds (mortgage status, source of capital), conditions of sale (i.e. subject to survey or subject to contract). Once the offer is made, it’s a case of sit and wait (or go about your daily business). You might not be waiting long - sometimes agents can come back with an answer within minutes - but equally, it might take days or even stretch into a week. Often there is an element of cat and mouse.
Negotiation
If your first offer is accepted, this is good news, but if it is rejected, there is no cause for despair. If the property remains just as desirable (and unsold), then it’s time to enter negotiations. Firstly, if you can find out if other offers were made - and what they were - this will help you decide how much to increase your offer by. Your tactics may have anticipated counter offers - the question is when to play your final card. If there are multiple offers at the same price, sometimes it is worth explaining your strong buying position and outlining the less tangible reasons why you and your family would make good custodians of the property for the future: this can have an impact. If it’s more clinical, and goes to sealed bids, then put your best and final offer in - and judge it on how much you value the property, both financially and emotionally.
Offer Accepted
Hopefully, at the end of the negotiation, you succeed: the final offer will be accepted at a price that suits both you and the seller. There is, however, still work to be done to secure the sale. The estate agent will confirm acceptance in writing, but make sure they swiftly take the property off the market. If it is no longer advertised for viewings, this negates the risk of attracting further interest. Your solicitor will want a Memorandum of Sale from the estate agent in order to start the legal ‘conveyancing’ process. Legally, there needs to be a property survey to check for structural issues (if there are any major issues, the cost of faults or issues could then be taken into account into the final price). While the property is ‘SSTC’ - sold subject to contract - the deal is on. All parties are busily working towards exchange and completion. From start to finish, the process can take between 12-16 weeks.
Preparation, proactiveness, and patience - along with expert legal advice - should make buying UK property a highly efficient process. One which makes it much easier, and ultimately quicker, to sit back and enjoy your magnificent new house.
