Are you feeling daunted by making an offer on a house? You don’t want to miss out but don’t want to pay over the odds either. We’ll show you how to read the signs and make an offer you’re happy with.
Wimbledon is within easy reach of London, with the charm of Wimbledon Village, the leafy streets of Coombe, and the open spaces and sports grounds of Wimbledon Park. Average property prices in Wimbledon have fallen over the last 12 months, so many buyers will be looking to take the opportunity to purchase a home while prices are lower. Being prepared will help ensure you are in a position to move quickly in this competitive market.
When you’re buying a home in a sought-after area, it’s tempting to panic. So, we’ve prepared some ideas to help you approach the buying process with confidence.
Use an online mortgage calculator, or speak to an independent mortgage broker to estimate your budget more accurately.
Estate agents may ask if you have a mortgage in principle for reassurance that your budgeting is correct and you can afford the property. They may also ask you to provide proof of funds for the deposit, and this request is more common in competitive markets like Wimbledon.
Your broker can help you apply for an agreement in principle. But be aware that your application will show up on your credit rating.
The best strategy for making an offer on a house is to be prepared, so start researching local selling prices. Are similar properties selling quickly, or have agents reduced their asking prices? Land Registry sold prices and the information on property portals like Rightmove and Zoopla can give you the numbers you need.
Another good indicator of demand for property is the number of listings that show ‘Sold STC’ (Subject to Contract). If there is a high proportion of similar properties that are currently under offer, this is a sign that the local market is competitive. When this is the case, there will usually be less room to negotiate on price.
By asking the estate agent or seller certain questions, you can gain a better idea of whether the seller may be willing to negotiate on the price and how much interest there has been in the property.
Ask these questions before you decide how much to offer:
If a place has been on the market for a long time, always ask why? Maybe it was priced too highly originally or requires a lot of work. But you need to know if there’s a more worrying reason.
Whether it’s for more outdoor space or an extra bedroom, their reasons could help you evaluate the home in relation to your needs. If they want a quick sale, this can help your negotiations and indicate that they might accept a lower offer.
Get an insight into how long the buying process could take by asking if the owner has already found their next home.
Has there been a lot of interest in the property? Find out if you’re likely to face competing offers.
Gauge how close previous offers came to the asking price. Agents can’t share exact sums, but they may give you an impression of whether those offers were particularly low or came close to the property’s asking price.
Find out about extensions or renovations, when they were built, and if they were due to structural faults, which may lead to issues.
Unless stated in the contract, don’t assume the seller will leave items such as curtains, washing machine or free-standing fridge.
Avoid nasty surprises by finding out the council tax band and average utility bills. Some of this will depend on the property’s energy efficiency, so check the energy performance certificate (EPC) too.
Declaring neighbour disputes, such as boundary or noise issues, is a legal requirement, so your seller or estate agent must answer honestly if any complaints have been formally lodged.
Sold STC (Subject to Contract) means that an offer has been accepted but the contracts have not been exchanged so the sale is not legally binding at this point. There is a possibility that the sale could still fall through, so it is worth registering your interest with the agent in case the sale does not complete.
Whether you have room to negotiate will depend on several factors, such as the seller’s position and the level of demand for similar properties in the area. Submitting a lower offer could result in missing out on the property but it could help you to save a considerable amount of money, so the starting offer is a decision you should carefully consider.
How much should you offer? You want to secure the house, but keep perspective and remember that house prices can fluctuate.
If you aren’t familiar with how to put an offer on a house, these tips can help you determine a house price you’re happy with:
This table provides an overview of the different pricing labels and what each label means:
| Pricing Label | What It Means | Buying Tip |
|---|---|---|
| Guide Price | The minimum price the seller believes the property is worth, although they may accept a lower offer depending on interest. | Research comparable sales before deciding what to offer. |
| Offers Over | The advertised price is the minimum the seller hopes to exceed, and they are generally looking for offers above this figure. | Be prepared to offer above the listed price if there is strong demand. |
| Fixed Price | The seller expects buyers to offer the advertised price. This is common with new-build homes. | While the price may be fixed, you may still be able to negotiate incentives such as upgrades or paying legal fees. |
| Price on Application (POA) | The asking price is not publicly displayed, usually for privacy or because the property is high-value or exclusive. | Contact the estate agent to request the price and further details before making an offer. |
| Asking Price | The seller has advertised the price they would like to achieve. Buyers often negotiate based on market conditions and comparable sales. | Check recent sold prices in the area to decide whether to offer below, at, or above the asking price. |
| Offers Invited | No asking price is given, and buyers are invited to submit the amount they believe the property is worth. This is often used for unique or unusual homes. | Base your offer on the property’s condition, location, and comparable sales rather than guessing. |
Once you decide how much to offer on a house, submit it and await the seller’s decision. Buyers who are able to provide proof of funds as well as a mortgage in principle will generally be treated more seriously by sellers, particularly in areas like Wimbledon, where house prices are higher than the UK average.
You can make a verbal offer to the estate agent by phone at any point after the viewing, then submit your offer in writing. If it’s sealed bidding, a closing date will be set.
If you’re not chain free (e.g. first-time buyers), aim to find a buyer for your own property first. Estate agents have to pass on all offers, but making an offer on a house before selling yours can make you less favourable to the seller.
If successful, the estate agent will send you a formal letter of acceptance – you can then contact your mortgage provider and engage a solicitor. If the offer has been rejected, make a counteroffer to begin negotiations.
Most properties are sold under open negotiations. You can discuss an open bid and there is no set limit on how many offers you can make, so the estate agent can allow you to negotiate if your offer isn’t accepted.
Under the sealed bidding process, envelopes containing bids are opened at a set date and time. The seller often chooses the highest bidder but may be swayed by another factor.
These situations will affect your strategy, but it helps to know what to say when making an offer on a house (and what to keep to yourself). Try these negotiating tips:
Once your offer is accepted, you must instruct a conveyancer for the legal side, and arrange a survey. You should move quickly to reduce the possibility of being gazumped if another buyer comes in with a higher offer.
Keep in mind that your offer isn’t legally binding in England. The seller can pull out or accept another offer (known as gazumping) until contracts have been exchanged. If you’re buying a house in Scotland, your formal offer becomes legally binding once missives are signed.
When you have a buyer for your own house already in place, this will strengthen your own position as a buyer, especially if the vendor of the home you want to put an offer in for is looking for a quick sale.
If you put in an offer before selling your home, you will risk being stuck in a long chain. However, if you are a cash buyer or your property is under offer, making an offer before the sale completes can work.
Robert Holmes can advise you on your specific situation in the Wimbledon area.
Buyers often ask these questions about making an offer on a home in Wimbledon.
If you’re relocating or an overseas buyer, you can buy sight unseen but it’s always best to view in person to avoid unwanted surprises.
In England, it’s possible to make an offer on a property and then place an offer on another home at the same time. However, you will waste your time and money, and the seller’s, if you pull out of the deal before you exchange contracts. It is important to be transparent with agents if you are considering making multiple offers.
You can make an offer on a property that’s already under offer, though it will cause difficulties for their original buyer. The sale isn’t legally binding until contracts have been exchanged. Alternatively, register your interest in case their buyer drops out.
There’s no rule, but you may not look like a serious buyer without a mortgage agreement in principle in place. Approach a mortgage broker early in the process.
The timescale varies but in sealed-bid situations there will be a set date for accepting an offer. The agent may be able to provide an indication of their expected timeline.
After the offer has been accepted, it typically takes around 8 to 12 weeks to reach the exchange of contracts stage but in competitive markets like Wimbledon, timelines can often be shorter.
Are you considering buying a house in South Wimbledon, Merton Park, Roehampton or New Malden? Contact us if you’re starting your property search in the Wimbledon area. Your local Robert Holmes team will be happy to help
Let us know what you are looking for in your new home and we will tailor our search to your requirements.
Book a quick phone consultation with one of our negotiators.
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