You've found the property, you're ready to make an offer. But what does that really mean? Lets take a look.
By the end of this chapter you’ll understand:
✓ How to make an offer on a property
✓ What happens after your offer is accepted
✓ What a Memorandum of Sale is
✓ What happens next in the buying process
✓ Why patience becomes important
Estimated Reading Time: 8 minutes
After weeks or months of searching, you’ve finally found it. It ticks the boxes. The location feels right. You can picture yourself living there. It’s exciting, but it’s also where the buying process starts to become much more real. The next step is making an offer.
For many first-time buyers, this can feel nerve-racking. How much should you offer? Can you negotiate? What happens if it’s rejected? The good news is that making an offer is a normal part of buying a home and understanding how the process works can help you approach it with confidence.
Making your offer
Your offer is usually made through the estate agent acting on behalf of the seller.
When deciding how much to offer, consider:
Try not to let emotions take over. Remember, the aim is to buy the right home at a price you’re comfortable with.
Can you negotiate?
Yes. Negotiation is a normal part of the home-buying process. The seller may:
It’s perfectly normal for conversations to go backwards and forwards before an agreement is reached. Try to stay calm and avoid making decisions based purely on emotion.
Did You Know?
The asking price isn’t always the final selling price. Some properties sell for the full asking price, some sell for less and others may receive multiple offers. Every property and every seller is different.
Having your offer accepted is a huge milestone. However, it’s important to remember that you’re not legally committed to buying the property at this stage.
Instead, this marks the beginning of the legal and mortgage process. There are still several important steps to complete before you receive the keys to your new home.
What is a Memorandum of Sale?
Once your offer has been accepted, the estate agent will usually prepare a document called a Memorandum of Sale.
This isn’t a legally binding contract. Instead, it’s a document confirming the details of the agreed sale.
It will normally include:
The Memorandum of Sale is sent to everyone involved so the legal work can begin.
Once your offer has been accepted, several things start happening at the same time.
Your mortgage application – We will begin progressing your mortgage application with your chosen lender.
Your solicitor gets to work – Your solicitor will begin the legal process, carrying out searches, reviewing contracts and raising any enquiries with the seller’s solicitor.
The lender arranges a valuation – Your mortgage lender will usually arrange a valuation of the property to confirm it’s suitable security for the mortgage.
You gather documents – You may be asked for additional documents to support your mortgage application. Providing these quickly can help avoid unnecessary delays.
Be prepared for waiting…
One of the biggest surprises for first-time buyers is that buying a home isn’t always a fast process. Some stages move quickly. Others require patience. Solicitors, lenders, surveyors and estate agents are all working together, and each has an important role to play. Although it can sometimes feel as though nothing is happening, a great deal of work is often taking place behind the scenes.
One of the best things you can do after your offer is accepted is respond quickly to requests for information.
Whether it’s your mortgage adviser, solicitor or estate agent asking for documents or signatures, replying promptly helps keep your purchase moving.
Alex and Sophie offered slightly below the asking price on a property they loved. The seller responded with a counter-offer.
Rather than rushing into a decision, they took time to review their budget before agreeing a figure they were comfortable with.
A few days later, the offer was accepted. Looking back, they were pleased they hadn’t stretched themselves beyond what they could comfortably afford.
✓ How making an offer works.
✓ That negotiation is a normal part of buying a home.
✓ What a Memorandum of Sale is.
✓ What happens after your offer has been accepted.
✓ Why good communication helps keep your purchase moving.
Next Chapter
Applying for Your Mortgage
Now that your offer has been accepted, it’s time to move on to one of the most important stages of the buying process.
In the next section, we’ll explain exactly what happens when you apply for your mortgage, what your lender will assess, what documents you’ll need and how your application progresses towards a Mortgage Offer.
