After all the great efforts and plans, once you have finally found the perfect property to build your dream home, the next important step comes in preparing an offer.
Here are the steps to carry out the process properly, or you can simply get our sample offer letter to purchase property in the UK below:
Step 1: Do some research
Make sure to carry out the proper research. Check what the property is truly worth by comparing the house prices for similar properties in the same area.
Make a note of any obvious faults or repairs that you noticed while viewing the property, as you can put this in order to lower the pricing. This is especially important when reviewing the condition of the properties you’re considering.
Step 2: Make sure how much you can manage
Get a mortgage agreement or agreement in principle from your lender. You are required to provide a copy of this to your solicitor so that the broker can insist you are serious.
Confirm how much you need to pay out for legal and survey fees for your mortgage and deposit. If the property needs work, consider costs for specialist reports on property conditions.
Step 3: Get organised
Have your solicitor in place so that you are able to provide the estate agent their details at the same time as putting forward your offer. (Get this free sample offer letter to purchase property in the UK.)
Provide your full contact details and the best times and ways to contact you.
Step 4: Be personal to get ahead
It helps to emphasise your strengths as a buyer and your appeal to potential partners. Never assume that offering the full offer amount will automatically secure the property.
Check with the seller to see if there’s anything specific that could help move the sale forward. If the seller is part of a chain, buyers in a stronger position—such as first-time buyers, those without a chain, or buyers with a mortgage agreement already in place—often have a competitive edge over others in the market.
State around 2–3 brief sentences suggesting why you want the property and what you adore about it. Homes are considered very personal and oftentimes a seller agrees to a buyer’s offer knowing it’s going to someone who will adore it in the same manner as they did—rather than it going to a property investor.
How to make an offer on a property
You can make an offer on a property by any method, either in person or by phone.
Always follow it up in written form, usually by email these days, so it is kept on record. It’s standard to submit your offer by email to keep a paper trail.
It is suggested to write out the email offer letter first—then read the main points out to the estate agent on the phone.
Make a clear statement that your offer is: Subject to contract and subject to survey.
- Subject to contract: the final sale takes place only when lawyers have exchanged legally binding documents.
- Subject to survey: this allows for the amount of any flaw or issues to be taken into account once your surveyor has examined the property.
As the final step, ask that the property is removed from the market. This minimises the chances of someone coming in with a more appealing offer, known as gazumping.
How to Write a Winning Offer Letter To Purchase Property
Here are five top tips on writing a successful offer letter for your dream property:
1) Always provide an offer in writing
The offer must always be made in writing. An email is fine. The estate agent is then responsible to put this forward to the owner by law unless the seller has stated some conditions not to receive offers below a certain price.
2) An offer
An offer made over the phone isn’t usually seen as convincing. Verbal discussions can also lead to misunderstandings or inaccurate information. For example, an agent might tell you that the lease has over 100 years remaining, but it could later turn out to be just 81 years — meaning the cost to extend the lease would be far higher than you initially expected.
3) Add ‘subject to contract’ to any offer in writing
This clearly means that your offer is not able to bind the buyer until the solicitor has accepted the stated terms and conditions.
4) Include as much detail as possible
You must account for anything you have been informed by the estate agent. You should provide maximum information about your offer and position including whether you’re a first-time buyer or cash buyer as this will always make you more approachable to the vendor. The better and informative you can make your offer to purchase look, the more likely it is to be accepted.
Don’t forget to attach any relevant documents, such as your agreement in principle, proof of deposit, and solicitor contact details.
You may be asked to speak to the selling agent’s mortgage broker as part of the due diligence process by the selling agent. As stated above, always involve lease length and service charge if appropriate, as mortgage brokers frequently get these wrong.
If at any point you need to withdraw from the transaction, ensure you notify all parties in writing as soon as possible to avoid delays or misunderstandings.
5) Be as flexible as possible on timing
Generally, the seller has certain requirements and limitations related to date like a move date, new school start date etc. To get the best price you should be adaptable as much as possible.
6) Use evidence to back up your price
If you are willing to reduce the price, try to clarify the reasons why, with evidence to back up your argument. In case the property is highly priced, provide comparable property sales to prove your offer is valid for the current market conditions.
Example Templates
If you need inspiration or guidance, consider using an offer letter for house template. A house offer letter is an excellent way to make a personal connection with the seller and stand out from the crowd. See our sample letter for offer on house available for download.