Introduction – how to make an offer on a house

The first thing to do when thinking how to make an offer on a house is to come up with your minimum and maximum bid. How much are you willing to pay for the home? How much can you realistically afford? How important is location, size, or other features of the property in determining how high you should go? You need to know these things before deciding how much money you will offer. In this blog, we will be going over all of this and why you might want to consider getting some insurance too!

Why you might want to consider insurance for your house

Normally when someone is thinking of how to make an offer on a house it will be one of the largest payments they will make. No matter your personal circumstances you should consider getting Home insurance, this can help your investment from unexpected damage which could otherwise significantly lower your position on the property ladder. Under some loan agreements, you will be legally obliged to pay for house insurance for your property.

How to make an offer for a house? 

Decide your buying price

There are a variety of factors that go into deciding your buying price. Not only does it depend on having more less or more money, but it also comes down to if the market has a good deal waiting for you to take it. 

Most people will speak to a real estate agent to find the right house for them. A real estate agent can help guide you so you make a good initial offer that won’t be too high or so low you risk losing the whole property.

You should have a rough idea of how much you are looking to spend before you go to any estate agents. This way you will have similar properties to look at around an affordable asking price.

Do your research

In some cases, the buyer makes too high a bid when they initially submit their offer. If you have found your perfect property this could be a good idea to potentially avoid a bidding war and get the owner to sell quickly, therefore avoiding competition. However, if you are a first-time buyer, you may want to think twice and be patient to get the best price for the property, in many cases with patients you can pay less money rather than getting a quick sale.

If you are house hunting for your first property you may want to consult a real estate agent to help you get good house prices that meet your budget. While the final price may be increased by the estate agents fees they should be able to lower the asking price getting you a better deal.

You should also do some research on the current market so you know if the current price is inflated. It’s good to look at similar properties to determine a reasonable asking price. 

If there is a lower price in comparison to similar houses, the market may be low justifying the lower offer they are asking for. However, a lower asking price can be a sign of something being wrong with the house. You may want to get a property survey especially if there are no other buyers showing interest. You can discuss the asking price with your estate agents to determine if an opening bid is worth your time.

What is a sealed bid?

A sealed bid is when a property agent accepts bids from multiple parties and accepts the best offer. When you put in an offer on a house with sealed bids you cant see what other people have bid. Sealed bids are useful for making the property buyers spend more than the market value for the property. 

Find your mortgage broker

A mortgage lender will need to see that you are capable of gaining enough funds over the next few years to pay off your mortgage. You should get your mortgage agreement before you put in an offer on the house. Having a mortgage agreement in advance will make you seem like a serious buyer and will make you have a potential advantage over other buyers.

A mortgage is a legally binding contract that on average lasts for 25 years. You should make sure your personal circumstances will allow you to carry the financial burden of a mortgage.

Negotiate the price – have multiple options 

If you are a first-time buyer and not in a big rush to get your first property you will have an easier time in the negotiation process. The bidding process can be a little difficult for first-time property owners so you could learn a few things by hiring an estate agent, this can you find a good asking price and lower the total cost of your final offer.

In competitive markets, you could see houses that you could usually comfortably afford having a large price rise. Estate agents can help first-time buyers find their dream home but there’s only so much they can do when it comes to getting a cheap offer accepted. You need to have a good understanding of your starting point so the estate agent can find a property with a similar asking price.

In a competitive market, you may be expected to pay the price above the property owners asking price. This can put you in a better position to get the house and scare off some interested buyers. Willingness to pay extra can make home buyers look more like a serious buyer and the seller’s agent will be more likely to give reject other potential buyers.

You should find multiple properties so you can increase your chance of getting a successful offer. It’s worth noting the recent sales in the areas you’re looking at so you can determine if your property is a good price.

The sold prices may not be too important if the market has seen a sudden change or if you’re looking at a dream home that you would be willing to meet a higher asking price.

Letting the property owner know that you are a chain-free buyer may also give you an advantage. Being a chain-free buyer means your money isn’t caught up in another property which at the same time makes an offer on a house look like it is coming from a serious buyer.

A cash buyer may also have an advantage in putting down an offer on a house as cash will make the process much faster as you don’t have to go through any hassle from the bank. In some cases, cash can help lower the asking price of the property.

What to do when my offer for a property has been accepted?

When the offer is accepted you should ask the property owner to take the property off of the market. This will limit the chance of them seeing an offer on a house that would make them not sell to you. If your bid has been accepted the seller of the property should be willing to remove the house online.


There are a number of steps you should take before making an offer on a house. One is to determine the value of the property, which includes comparing it with other similar homes in your area and estimating what that home would be worth if it were vacant (and not occupied). Another step is to research any homeowners’ association fees or restrictions, as well as potential costs for utilities, maintenance, taxes and insurance. In addition, make sure you have adequate coverage from homeowner insurance for protections against lawsuits filed by neighbors or people who may trip over something outside your front door. It’s always good to get expert advice from someone experienced when deciding whether this type of protection makes sense for your particular needs; we can help! Just call us on 0330 113 7109.