We typically find that first time buyers in Cambridge can get overwhelmed by the whole mortgage process. Once you have found a property that you are interested in, how do you make an offer?
There are many different questions like this and applicants sometimes get lost in all of the jargon, confusion and stress that can sometimes come with getting a mortgage. It is important to remember that there are experts out there that can help you and take all of this stress away.
For example, did you know that our mortgage advisors in Cambridge can help you make an offer on a property? We want to make your mortgage experience run as smoothly as possible and will do everything in our power to help.
Making an offer on a property can be a whole minefield. In this guide, we look at things you need to consider when making an offer on a property in Cambridge.
Prepare
Once you have found a property in Cambridge that you want to purchase, your estate agent will want to make sure that you have sufficient funds to continue with the sale. To prove this, you will be asked to provide an agreement in principle.
An agreement in principle (AIP) is a document that is issued by your mortgage lender that states that they are willing to let you borrow from them. This is agreed in principle of you providing supporting documents to evidence your income and overall affordability for a mortgage. We are able to obtain an agreement in principle for you within 24 hours of your free mortgage appointment.
Once you have issued your AIP to your estate agent, they will also carry out their own anti-money laundering checks. This check involves looking over your identification and proof of address. Essentially, they are checking that you are who you say that you are.
Some estate agents may be cheeky and try to sell you additional products and services. One example would be their in-house mortgage advice. Using an estate agents in-house mortgage advisor often comes with high fees; fees that could potentially be lowered when using a mortgage broker in Cambridge. We find that most homeowners nowadays are savvy enough to recognise these sales tactics and go elsewhere anyway.
This is why it is important to prepare when getting ready to make an offer on a property. Arrange your AIP in plenty of time, speak with a mortgage advisor in Cambridge and most importantly be vigilant and don’t fall for an estate agent’s tactics.
Build Relationships
Speaking directly with the seller and learning about their situation can be a great start when making an offer on a property. There is always an emotional side to selling a property and playing on that part of the process can be a great part of the negotiation process.
One example of playing on the emotional side could be if you were planning to raise a family in the property. If the seller has raised a family of their own in the property, this can build a positive relationship with the seller and create that emotional connection.
Taking time to understand the seller’s motivations for selling and their future plans can give you leverage when negotiating the purchase price.
Act Quickly
When making an offer on a property in Cambridge, you may find that the purchase is part of a property chain. This is where the seller of the home that you are looking to move into is waiting on their seller to move out of their property. This can go on and on, to the point where moving dates are pushed back.
If you are lucky enough that your purchase is not part of a property chain, you may want to speak with your seller or the estate agents and let them know that you can move into the property as quickly as possible. If the seller wants a quick sale and wants to move on from the property, this could encourage them to progress the sale much quicker.
In some cases, if there are several other buyers interested in the property, letting the seller know that you can advance through the purchase quickly, then they may favour your offer over others, you never know!
The “art of negotiation” comes into play here. Taking time to understand the seller’s situation can really help you when making an offer on a property in Cambridge.
Put a Price on it
The most important thing to consider when making an offer on a property in Cambridge is that you should never offer more than what the property is worth or more than you can afford.
The strategies that are commonly used are either;
1) Make your first offer your best offer to show that you are a serious buyer and to avoid a lengthy negotiation process.
2) Start off with a lower offer to leave some room for negotiation if your initial offer is declined.
The strategy that you choose will differ, the main factor being how much you want the property.
Be Confident
Have confidence in your offer! When you put forward your first offer, do not worry if it is below the asking price. Your offer is what you are willing to pay for the property, and if you are declined, don’t worry about it.
Most other buyers who have put forward an offer will have likely done the same. Sometimes, it can take more than one offer to be accepted, it’s perfectly normal.
If you are able to find out the other offers that have been made on the property, this could give you a good indication of what you may need to match. Again, this depends on how much you want this property in Cambridge.
If you feel unsure about how to make an offer on a property in Cambridge, don’t hesitate to get in touch with our team. Even if you are not a first time buyer in Cambridge and are planning to purchase your second home and need help, don’t worry, our job is to help you through your mortgage process no matter your situation.
Your Offer is Accepted
Unfortunately, just because your offer has been accepted by the seller, you are still not guaranteed to get the property until all of the documents have been signed and your mortgage lender accepts your mortgage application.
As a mortgage broker in Cambridge, if your offer has been accepted we would recommend requesting that the property is taken off the market so that other buyers can’t put in more offers.
To complete your mortgage application, you need to contact your mortgage advisor in Cambridge and speak to your solicitor to set a realistic target date for exchange.
Date Last Edited: December 6, 2023
