Making a House Offer
It is best to make the initial offer in writing if possible. This will help to ensure that your offer is communicated accurately and will help to avoid future misunderstandings or disputes about who said what. In the interest of speed a fax is best. The initial letter should:
- be clearly marked 'Subject to Contract'
- summarise the benefits of your buying position and your timescale
- state the price offered
- justify the price offered
- list any other conditions.
Example of Written Offer:
Dear Mr Jones,
Re: 27 Avenue Gardens , Anytown
SUBJECT TO CONTRACT
I should like to make an offer to purchase your property.
I am in an excellent position to proceed quickly. I am in rented accommodation at the moment and I have no property to sell. I have a large deposit and my mortgage is already arranged. I could probably exchange contracts within four to six weeks.
I should like to make an offer of £65,000. I feel that this is a fair price for the property because a sale was agreed at this figure on 17 Avenue Gardens three weeks ago. Number 34 is also up for sale at £65,950.
My offer is subject to survey and subject to you taking the property off the market immediately.
I hope that my offer is acceptable to you and I look forward to hearing from you shortly.
Yours sincerely
P Smith
Handling the Negotiations
The traditional process of negotiation is highly confrontational. The parties start off a few thousand pounds apart and each side takes turns to increase or decrease the price that they are prepared to pay or accept.
The problem is that each concession makes the parties more determined not to give in again and all too often the negotiations reach deadlock. Sometimes the issue left unresolved is trivial to the point of farce.
Asking for Justification
The way to avoid this is to keep asking the simple questions 'why' and 'how'. If the vendor rejects your first offer, ask them why they have rejected it and how they have arrived at the figure they require. The technique of asking the other party to justify their position works like a magic charm and can be used several times during the same negotiation.
