Making an Offer on a House
You've found a place you love. Now comes the bit that makes everyone nervous — actually making an offer. Here's how to do it with confidence, without overpaying or losing out.
When Should You Make an Offer?
There's no rule that says you have to view a property three times before making an offer. Some people know straight away. Others need a second look. The important thing is that you feel confident about the property and you've done your homework.
Before you make an offer, make sure you have an Agreement in Principle (AIP) from a lender. This shows the estate agent and seller that you're a serious buyer who can actually get a mortgage. Without one, your offer may not be taken seriously — especially if there are other interested buyers.
Your First-Time Buyer Advantage
As a first-time buyer, you're chain-free. You don't need to sell a property before you can buy. This makes you incredibly attractive to sellers because there's less risk of the sale falling through. Don't underestimate this — it's a genuine advantage that can tip the balance in your favour, even if your offer isn't the highest.
How to Decide What to Offer
The asking price is just a starting point. It's what the seller hopes to get, not necessarily what the property is worth. Here's how to work out a sensible offer:
Check Comparable Sales
Look at what similar properties in the same area have actually sold for recently (not what they were listed at). You can check this for free on the Land Registry's Price Paid Data or on sites like Rightmove and Zoopla under "sold prices". This gives you a realistic picture of what the property is worth.
How Long Has It Been on the Market?
A property that's been listed for months may have a more motivated seller. If it's been on the market for 3+ months without selling, the seller may be more open to a lower offer. A property that's just been listed, or one with lots of viewings, gives you less room to negotiate.
Consider the Property's Condition
If the property needs work — a new kitchen, bathroom, or decorating — that's a legitimate reason to offer below asking price. You're not being cheeky; you're being realistic about the costs you'll face after moving in.
What's the Market Like?
In a buyer's market (more properties than buyers), you have more negotiating power. In a seller's market (more buyers than properties), you may need to offer closer to or at the asking price. Your estate agent can give you a feel for the local market, but remember — they work for the seller, not you.
How to Actually Make the Offer
Making an offer is simpler than you might think. Here's the process:
Call the Estate Agent
You make your offer through the estate agent, not directly to the seller. Call them and say something like: "I'd like to make an offer of £X on [property address]." Keep it simple and confident.
Explain Your Position
Tell them you're a first-time buyer with no chain, that you have an Agreement in Principle, and that you're ready to proceed quickly. This strengthens your offer significantly.
Follow Up in Writing
After your verbal offer, send an email to the agent confirming the offer amount, your position (first-time buyer, no chain), your mortgage status (AIP in place), and your proposed timescale. Having it in writing protects you and shows you're serious.
Wait for the Response
The agent is legally required to pass on all offers to the seller. The seller can accept, reject, or come back with a counter-offer. Don't panic if they don't accept immediately — negotiation is normal.
Important: "Subject to Contract and Survey"
Your offer should always be made "subject to contract and survey". This means the offer is conditional on the legal process completing and on a satisfactory survey. It protects you if the survey reveals problems or if something comes up during the legal checks.
Negotiation Tips That Actually Work
Negotiating doesn't have to be confrontational. It's just a conversation about finding a price that works for both sides. Here are some practical tips:
Don't Show All Your Cards
If the agent asks what your maximum budget is, you don't have to tell them. A simple "I'd like to make an offer of £X" is enough. Your budget is your business.
Be Prepared to Walk Away
The most powerful negotiating position is being willing to walk away. If the numbers don't work, there will be other properties. Don't let emotion push you into overpaying.
Stay Calm and Professional
Don't criticise the property to justify a low offer. Instead, base your offer on facts: comparable sales, time on market, and any work needed. Agents respond better to reasonable, evidence-based offers.
Have Your Paperwork Ready
An AIP letter, proof of deposit, and ID ready to go shows you're serious and can move fast. Speed and certainty are what sellers value most.
Sealed Bids and Gazumping
What Are Sealed Bids?
Sometimes, when a property attracts a lot of interest, the estate agent will ask all interested buyers to submit their "best and final offer" by a set deadline. This is called a sealed bid process.
The key thing to know is that the seller doesn't have to accept the highest offer. They'll consider the whole package: price, buyer position (chain-free is a big plus), mortgage status, and how quickly you can complete. As a first-time buyer with an AIP, you're in a strong position even if you can't offer the most money.
My advice? Offer the maximum you're comfortable paying and that you can genuinely afford. Don't stretch beyond what works for you — if you don't get this one, another property will come along.
What Is Gazumping?
Gazumping happens when the seller accepts a higher offer from another buyer after already accepting yours. It's legal in England and Wales (though not in Scotland, where the system works differently), and unfortunately it does happen.
To reduce the risk of being gazumped:
- Move quickly — get your mortgage application submitted and your solicitor instructed as soon as your offer is accepted
- Ask the seller to take the property off the market — this is a reasonable request once an offer is accepted
- Stay in regular contact with the agent and your solicitor so nothing stalls
- Consider a lock-out agreement — a legal agreement where the seller agrees not to accept other offers for a set period (though these aren't common)
What Happens After Your Offer Is Accepted?
Once the seller accepts your offer, things start moving. You'll need to instruct a solicitor, submit your full mortgage application, and arrange a survey. It's an exciting time, but there's a lot to coordinate.
This is where having a broker really helps. I coordinate with your solicitor, chase the lender for updates, and keep everything moving so you don't have to worry about things falling through the cracks.
What If Your Offer Is Rejected?
Don't take it personally. It happens. You have a few options:
- 1.Increase your offer — if you can afford to and the property is worth it to you
- 2.Ask for feedback — the agent may tell you what the seller is looking for
- 3.Move on — there are always other properties. The right one will come along
Common Questions About Making an Offer
Continue Your Buying Journey
Your home may be repossessed if you do not keep up repayments on your mortgage.
This guide is for general information only and does not constitute financial advice. Every situation is different, and mortgage products and availability can change. For advice tailored to your circumstances, please get in touch for a free, no-obligation chat.
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