6 tips to make the right offer on a house

Buying a house can be an exciting time, but it also requires planning. Property prices continue to rise, and potential home buyers are faced with seriously low supply levels, so competition is often fierce for those finding and making an offer on a house.

Although getting on the property ladder might be challenging given the current conditions, it is still achievable. A well-thought-out financial plan based around sound saving can get you closer to turning your dream into a reality. 

Rather than being overwhelmed by it all, being prepared and taking a step-by-step approach can help alleviate the stresses and make the process more manageable. Our 12-step process to buying a house, should help as a guide when you are planning to buy a house in Ireland.

Once you have found your dream home, it’s time to make an offer or bid to purchase the home. Below are tips on the bidding process and how to make an offer on the house you are hoping to buy.

How to make the right offer on a house to buy 

Decide your budget

Before you can consider making an offer on a property, you need to know your budget. Do you have an amount in mind that you can afford to offer for the house? How much are you approved for from the lender? Do you have additional savings that you could tap into? Essentially you need to think about how much you can offer and if the bid goes up, can you afford to go higher and by how much? 

Consider the competition 

The next thing to think about is are you bidding on a house where there is a lot of competition? The higher the competition the higher you may have to bid. As mentioned above, you need to consider if your offer is not accepted, and you go in with a higher offer, how much higher can you afford to go?

Evaluate whether the asking price is right 

Do some research and see if the offer you are willing to make matches the value of the house. You can find out the values of nearby house sales using the Property Services Regulatory Authority search function. You’ll find the type of property, sale price and year.  

You can also find the house price changes by using the calculator provided by myhome.ie. This way you can figure out the ask price and the sale agreed price difference, and consequently make a more informed decision before making an offer. 

Don’t offer too low 

There is no point in making a very low offer. In competitive areas your offer will be easily discarded so be serious about your bid and make a realistic offer. This will let the seller or estate agents know you are serious about your intention to buy the house.

Don’t offer too high

If you have a pre-approved mortgage and you bid the full amount, you might be left with no money for home improvements and other costs that come with buying a house, or indeed hidden costs that may arise later.  You can check out our article about all hidden costs ranging from solicitor fees and stamp duty to mortgage protection and home insurance on our blog to get an idea of all the expenses involved with buying a house. 

Make your offer

Now that you have done your research and are comfortable with the offer you are going to make, contact the seller or estate agent and make your offer. If your offer is not accepted, consider going back with a higher offer, but only if you can afford to do so.

If your offer is accepted, congratulations. Get in touch with a solicitor as you will need them to look after all the legal elements of transferring ownership of the house over to you.

Mortgage requirements

Anyone taking out a mortgage is required by their lender to have mortgage protection in place. Many people take up a policy with their mortgage provider, but it’s worth considering Zurich for your mortgage protection cover. We provide competitive cover so that you can save money at a time when you’re likely to already be financially stretched. Find out more about Zurich mortgage protection.

Get a mortgage protection quote  Get a home insurance quote