While it's perfectly fine to base your decision on the appeal of a property, when you've narrowed down your choices to a couple that seem perfect, these 5 key questions can provide you with crucial information before you make your offers. They are not just questions but powerful tools that can guide you through the home-buying process.
This article is a valuable resource that will give you a quick breakdown of what might be helpful to know before you begin your negotiations. It's like having a knowledgeable friend by your side, guiding you through the process.
- Seller's motivation. Finding out how motivated the sellers are can be established by asking questions about how long the sellers have been trying to sell the property, how long the current agents have had it on the market and how much interest there has been in the property so far. Once you have an idea of how motivated the sellers are, whether they are frustrated at the time the property is taking to sell or because they have already found a property to buy, it can help you understand how negotiable the marketing price may be. You don't want to come in with a low offer for a property that has only just come onto the market, as the sellers will likely want to hold out for their asking price, meaning that your negotiation might not be successful. Conversely, if the sellers have been trying to sell for some time and are becoming frustrated or even a little desperate, you may have more room to negotiate a little harder for a lower sale price.
- How much interest have the sellers had so far? If there have been lots of offers from other buyers that have not been able to reach a deal, then there might be little point coming in very low with your offer. This question aims to gather information about how negotiable the sellers may be in their prices. They may have had no offers, meaning you will have to start where you think best and negotiate upwards. But if the sellers have had offers already, then the agents might be able to steer you a little to a figure that is more likely to be acceptable to their seller.
- Have there been any previous sales that have fallen through? - The answer to this question will indicate the timescale the seller might be looking for, as well as details about why the previous sale fell through. Moving on from this, if there have been aborted sales, you need to know if the survey was carried out and if this raised any important factors that may impact your offer and purchase of the property.
- Is there anything listed on the deeds that you need to be aware of? Easements and covenants will be noted on the deeds for the property and will dictate what you can or can not do at the property. This might make the property unsuitable for you, therefore removing it from your list of potential new homes. The deeds hold key information you need to be aware of before you agree to buy to reduce the chances of a collapse of a sale further down the line, which would result in wasted time and money for both you and the sellers, as well as any other parties connected in the chain.
- Have the sellers carried out any substantial changes or repairs to the property, and do they have the relevant paperwork? Many structural changes require building control sign-off certificates, even if they do not need planning permission. If no certificates are in place, there could be problems further down the line when the solicitors ask for documentation that does not exist. It is still possible to purchase the property with indemnity insurance policies in place, but these will need to be paid for, which can create a difficult discussion further down the line. If you know about the potential problem in advance, you and the sellers can incorporate this into a negotiation, making the legal sale process much smoother for all involved.
When selecting a property to make offers on, securing your next home, the answers to these key questions will ensure you go into offer negotiations fully prepared.
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