What do you need to make an offer?
Before making an offer you should have all your paperwork in order. If you show you are fully prepared and a serious, credible buyer you will be in a stronger negotiating position and sellers will be more comfortable when negotiating, it is particularly important when you are competing against another possible buyer.
Buying a property is one of the biggest financial decisions most people will make in their lifetime. In England, the process of making an offer on a property involves some preparation to ensure you’re taken seriously as a buyer and to streamline the buying process. Here’s a step-by-step guide on what you need to have in place before making an offer.
A Mortgage Agreement in Principle (AIP) - One of the most important documents you’ll need is a Mortgage Agreement in Principle (AIP). This is a statement from a mortgage lender indicating how much they are willing to lend you based on your financial situation. While an AIP is not a formal mortgage offer, it shows sellers and estate agents that you’re a serious buyer and financially prepared to proceed with the purchase.
To get an AIP, you’ll typically need to provide:
- Proof of income (e.g., payslips, tax returns if self-employed).
- Bank statements.
- Details of your monthly outgoings and debts.
- A credit check conducted by the lender.
An AIP can usually be obtained within 24-48 hours and is often valid for 60 to 90 days.
Proof of Deposit Funds - In addition to an AIP, you’ll need to demonstrate that you have the necessary funds for the deposit. This might be in the form of savings, proceeds from the sale of another property, or a gifted deposit from family. Provide bank statements or a letter confirming the source of funds.
Identification and Personal Details - Be prepared to provide identification to the estate agent when making your offer. Typically, this can include:
- A valid photo ID (e.g., passport or driver’s license).
- Proof of address (e.g., a utility bill or bank statement dated within the last three months).
This information is necessary for anti-money laundering checks required by law.
A Clear Idea of Your Budget - Before making an offer, it’s crucial to know your upper limit. Factor in additional costs such as:
- Stamp Duty Land Tax (if applicable).
- Solicitor’s fees.
- Survey costs.
- Moving expenses.
Understanding your budget ensures you make a realistic offer and avoid overcommitting financially.
A Conveyancer or Solicitor Lined Up - While you don’t need to formally instruct a solicitor or conveyancer before making an offer, having one in mind can speed up the process. Many sellers and estate agents will ask if you have a solicitor ready to handle the legal aspects of the purchase.
Knowledge of the Local Market - Do your homework on the property market in the area where you’re buying. Look at recent sale prices of similar properties and consider the condition of the property you’re interested in. This will help you make an informed and competitive offer.
Be Ready to Act Quickly - The property market in England can move quickly, particularly in high-demand areas. Having all your documentation and finances in order ensures you can make an offer promptly when you find the right property.
Conclusion
Making an offer on a property in England involves more than just deciding on a price. With a Mortgage Agreement in Principle, proof of deposit funds, and the right preparation, you’ll position yourself as a credible buyer. This preparation not only gives you confidence in your offer but also reassures sellers that you’re ready to move forward.
Good luck with your property search!
If you would like help with any aspect of the home moving process please reach out to us, we are happy to help.
