Gary Oxborough is Practice Principal here at Barlow Irvin Financial Services. This month, Gary reflects on one of the most common questions he gets asked.
You have probably seen that the housing market is incredibly busy at the moment, with many properties selling for in excess of the original asking price.
One question we get asked all the time is “How much should I offer?”
The simple answer to this is to offer what the house is worth to you. Property valuations are not an exact science and the old adage of a property being worth what someone is prepared to pay for it is very much the case. Obviously, mortgage lenders will work from the figures their valuer gives the property, this again can vary quite often.
If you watch the many property programmes on TV you will often see buyers saying they love a property and it is their ideal new home, then making an offer slightly under the asking price. Whilst I appreciate this makes for good TV when the host starts the negotiating with the agent on their phone (usually sat in a bar!), I do find myself screaming at the TV “If you love the house that much, just offer the asking price!”.
I’m not against negotiating in any way, but I find it incredible that someone spending potentially hundreds of thousands of pounds on their dream home for their family to grow, risk losing it over a couple of thousand pounds, especially when this is effectively split over many years of home ownership.
Our job is to help our clients finance their property, but I’ve always thought it’s more about helping them into the right property. My advice would be to always be mindful of the numbers, but also consider what the property will mean to you and your family over the years you intend to spend there. Property can be a good investment, but primarily, unless you are buying to let, it’s your home.
Time to Talk
Even if you have only just started to think about getting on the property ladder, why not get in touch for a chat. Call Gary on 01204 304 814.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.