We are all aware that the Harrogate and district property marketplace remains overheated with demand exceeding supply in most sectors and especially in short supply are – for example – larger south side family-sized homes. Naturally, buyers still want to get the best deal but with our market so saturated and competition at an all-time high, it’s important that Buyers understand the important dynamics of making an offer. First of all, for the best possible outcome Buyers must be proceedable – “Cash or MIP” – Mortgage in Principle. Here we can do no better than recommend all our own clients to talk to Andrew Vickers – Dragonfly Financials – an independent (whole of market) Mortgage Advisor.
- Research – Do it carefully before making an offer and check the asking prices of similar properties nearby and compare them to the asking price for the target property. You may find that some Vendors – against the advice of a good Estate Agent – overshoot their asking price at first to see if there are any takers, but if you see a similar property nearby for a lot less, you know where you stand when you offer/negotiate.
- Ask Questions – There is no such thing as being too intrusive when it comes to buying a new home. Two important questions to ask are: how long has the property been on the market? and – what is included in the sale? If a property has been on the market for quite a while, then the Vendor may be more open to accepting a lower offer. Understanding why the property has taken so long to be sold is essential.
Finding out what is included in the sale can also be used to mutual advantage in a house negotiation – as per “Fixtures & Fittings”/Curtains, Blinds, Floor Coverings etc
- Property Survey – If clearly significant Repairs/Replacements seem obvious these need to be reflected in any offer – always made “subject to survey and contract” and ahead of a formal Survey.
- Opening Offer – In pre-Covid times in Harrogate it was not that unusual when making the first offer to be much lower than asking but nowadays we would urge some caution. We don’t recommend DIY dentistry or insulting the Vender in today’s Seller’s marketplace – it’s not a good idea. Here we must confirm that business is now being very regularly done on good properties at, or close to, asking prices, and in fact “Best & Finals” offers on especially desirable properties are currently numerous. I would add here however that in the best Yorkshire way – and a handshake still counts for something – gazumping in Harrogate is virtually unknown.
- Firm but Fair – It may seem like an unfair market at the moment, with Vendors seemingly holding more power than Buyers but in fact, all is a fine balance so stay patient and take your time to review any counteroffers from the Vendor. The trick is to judge if the property will suit you just as much as the sale will suit the Sellers. In addition, please bear in mind that not all Sellers are solely motivated by money and their definition of the best offer may be a Buyer who is willing to be adaptable and wait longer than usual. Here we circle back to asking questions to fully understand the Seller’s motives and especially why they are moving and where they are moving to after the sale. Knowing these answers means that you are able to fine-tune/adapt your offer more in line with their interests/plans.
- Offer Refused – Rejections are disappointing but just because a Seller rejects an offer does not mean it is an absolute no, as there could be many reasons why it’s a no. They may still have more viewings planned and want to see any new offers or they may simply just want more money. If the seller wants a higher bid, then you need to assess your budget/situation. Make sure you know your limits and please don’t end up overpaying for a property that you can’t afford.
- Success – If your offer is accepted, you may need to amend your mortgage application (if needed) – up or down – which can take time to get approved.
- Final Advice – In all this, it’s a very good idea to deal with the vendor’s Estate Agent in a professional, friendly/courteous way. The Estate Agent will usually be the one to present your offer, tell you if your offer has been accepted or explain why your offer was rejected. Don’t risk your dream home for the sake of a bargain – be reasonable and put yourself in the seller’s shoes.
If all fails – be brave and trust us – there will always be another property.
If you are a Harrogate homeowner or involved in the local property market in any way then please contact us for a free no-obligation chat about the above and the property services we provide in Residential Sales & Lettings.
Charles
