The Redmove guide on buying a home in York – Pt 4

Redmove will help you deal with the process of buying a home in York

Redmove will help you deal with the process of buying a home in York

Making an offer for your dream home is fraught with problems and stress. You can put in a high offer to clinch the deal but by doing so you could be wasting thousands of pounds.

On the other hand, you could put in an offer that’s too low and risk losing the property.

The trick is to offer the best possible price for the property you want which means discussing with the estate agent how much you should bid initially.

Most estate agents aim to deliver a fair service which sees a vendor selling their property at the best possible price but also encouraging buyers to make a realistic bid too.

This is when the research of the area comes into play. You will need to monitor what homes are selling for in the neighbourhood and, more importantly, how quickly they are selling.

Buying a home in York – do the research!

If homes are on the market for longer than usual, then you could take a chance by bidding below the asking price. Be aware that if homes are moving quickly, buyers are generally offering the asking price to snap up the property before another buyer comes along.

At this point the Redmove guide on buying a home in York should really explain to important terms that may turn up in conversation during negotiations.

 

What is gazumping?

Gazumping can be a frustrating and annoying situation for a buyer in which the vendor has accepts an offer but then opts to accept a higher offer from a different buyer. If properties are moving quickly in an area, this can happen because it’s effectively a seller’s market.

One way to prevent being ‘gazumped’ is to insist that the property is taken off the market which should reduce the risk of a higher bid being made.

What is gazundering?

Gazundering can be a frustrating and annoying situation for a vendor in which the buyer reduces their offer just before the contract exchange. The aim is to force the vendor to accept a lower price for their property – refusing the new lower offer means the vendor will have to go through the process of viewings and trying to sell their home again.

It’s important to understand also that both of these situations are considered to be legal.

 

The process of making an offer is akin to haggling and many people are not comfortable with doing it but it’s important to consider a number of factors before actually making the offer itself.

The buyer in the strongest position is the one who has a pre-agreed mortgage and is a first time buyer because they are not involved in a chain. Everyone involved in the negotiations to buy a property will be wary of anyone who is involved in a long chain since these tend to break and it’s unlikely the purchase will be completed.

The estate agent will be aware of this chain and will highlight the positive effect that someone with no chain or who is in the process of selling their home will have on a quick sale.

Know your budget when buying a home in York

The other important factor for all potential property buyers in York is something we have recommended in this Redmove guide: you should know what your budget is from the beginning of your property search and stick to it.

One of the important reasons for doing this is that there are extra costs incurred such as moving costs and stamp duty which must be paid. Not sticking to an agreed budget will have an effect.

If, after making an offer, the vendor refuses it then you will need to consider very carefully whether you are prepared to spend more on a higher offer. Again, this is where your research will come in handy because you’ll need to know what house prices are in the area are and how quickly homes are selling.

It’s crucial that you don’t bid too high with an initial offer because this will leave you less ‘wriggle room’ should you need to increase your offer. Be aware too that making a bid that is too low will simply annoy the vendor and may work against you if there are other bidders.

If you need to justify an offer below the asking price, then you should highlight the costs you will incur carrying out repair work or fixing faults.

Although, when houses aren’t selling quickly the vendor is usually more willing to negotiate their asking price. Most people selling homes appreciate that they will have to negotiate on the price so very few will expect to actually meet their asking price.

After an offer has been made

Once a potential home buyer has made an offer then the process is then subject to contract and the undertaking of a satisfactory survey – a mortgage lender will want to know that the property is worth the asking price.

It’s also worth highlighting that the survey itself may raise potential problems with the property and the survey can also be a basis for renegotiating a lower offer of the property. Nothing yet has been signed and the vendor may be willing to renegotiate on these terms.

If you’re buying a new build, it might be worth asking the developer whether they will take your home as a part exchange even if they don’t offer the service.

Once an offer to buy a home has been accepted then the seller will want to move quickly to get the legal work and surveys completed.

The buyer must also fill in the necessary documentation for their mortgage and provide all the necessary documents and evidence such as proof of ID, how much they earn and proof of where they live. Potential buyers should be aware that these questions will be asked so be prepared with things like bank statements.

Use the best estate agent in York – Redmove

We should also flag up that if you are a cash buyer, that is a buyer not needing a mortgage, then a survey is not necessary but it is always highly recommended because it will highlight any potential problems. Anyone buying a property without carrying out a survey is running a considerable risk, especially if it’s an old property.

The estate agent can recommend a surveyor to carry out the work and you can move onto signing the contracts and plan your move into the property.

The next part of the Redmove guide to buying property in York will explain more about the contracts, being handed the keys and preparing for a stress-free move.

Redmove is York’s award-winning and leading estate agents; if you need to know more about buying a home in York then call us on 01904 488 444.

 

More information

Redmove is a York estate agent that is friendly and professional. We are registered with the Trading Standards Institute (TSI), The Property Ombudsman (TPO) and the Association of Residential Letting Agents (ARLA). We are proud to be part of the National Association of Estate Agents (NAEA).


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