House Offer Calculator:
How much to offer on a house
Nothing can guarantee your offer will be accepted, as every seller is different and you may be up against another offer that you simply can't beat. This guide shares with you the 'best practise' of wisdom and experience to help you price your offer right, so it has a good chance of being accepted and you don't pay more than the house is worth.
Make a good first impression
Size isn't the only thing that matters. Making a winning offer is often about more than making the highest bid. Often sellers will pass up the highest offer because they like the buyer whose offer they accept. For example, a family buying their first home might beat a buy to let landlord, if the seller wants to see the home they raised their family in pass to another young family, who will love and grow in it.
During the viewing:
- Dress to impress, (think interview);
- Ask at the door if they'd like you to remove your shoes. Show that you respect that this is still their home;
- Be engaging;
- Admire what they've done with the property;
- Ask the seller’s opinion on local schools, pubs, parks, they'll appreciate that you value their experience;
- Break the ice by flattering obvious features of the house, show you really like the property;
- Chat about their journey, where are they moving to - do they have a timeframe in mind? Align expectations and show that you're a good fit.
If the seller isn't present at the viewing, the above applies to the estate agent. The more buying signals you give, the more memorable you are, the more human your offer will be.
How do I know how much to offer on a house?
Know your budget
You should really have a mortgage agreement in principle already, to give you an idea of what you can borrow before arranging viewings. If not, get one now.
Do market research
Find similar, recently sold properties in the area, find out what they sold for, and work out their cost per square metre, in a table like this:
Property Address | Sold for £ | Date sold | Price per Sqm/Sqft |
(include link to listing) | £ | DD/MM/YY | £ |
Or, use our free calculator tool above, which will do the maths for you and tell you how much to offer with a free PDF to send to the agent.
Calculate the value of the property
Take the average cost per square metre and multiply it by the square metreage of the property you're looking at buying.
This is how RICS surveyors make their valuation of the property, so it will be realistic and meet the estate agents' expectations.
Will your budget cover this price, as well as other costs?
Before you make an offer, make sure there's enough left in your budget for conveyancing costs including stamp duty (if applicable) and other moving expenses.
As we discuss in How to make an offer on a house; everyone needs to win.
What do I do, now I know how much I should offer on the house?
You'll need to provide proof of funds. A scan or screenshot of the account holding your deposit funds will do. Remember to black out any data you don't want to share; at the moment, all you need to show is the balance.
You'll also need to prepare scans of your ID and proof of address (x2) to PDFs, ready for your conveyancing solicitor, if your offer is accepted.
When you make your written offer by email:
- Be likeable and engaging;
- set a boundary that you control;
- make an offer based on evidence;
- set caveats to your offer that link to the needs of the seller; and
- have a timeframe as to when your offer expires.
Never chase before your own deadline
You have set a timeframe by which you expect a response, chasing the agent before this date can show you are too keen and they may use this to their advantage, to drive your offer up.
Without Killing Anyone
This book could be the difference between every mover’s dream, buying and moving into your new home stress free, or, stress, missed deadlines, legal disasters, building defects, and possibly the collapse of the whole transaction. (Costing you a small fortune, a head full of grey hairs, and, driving you to threaten the life of your solicitor, lender, co-owners, family, partner, or some combination of all five).
With more than two decades’ experience in the conveyancing sector and over 50,000 successful client moves under his belt, Andrew shares insider tips and advice to empower you as a buyer, giving you the tools to make the best decisions for your circumstances and ease the chaos.
Available on Amazon | Kindle | Paperback
