Property professionals: what does an estate agent do and how can you get an offer accepted?
You’ve found the property, you can just about afford it with a mortgage you’ve agreed in principle with a lender.
To secure it, you need to make an offer for it and have that offer accepted.
Usually dealing with the estate agent rather than the owner directly, your first job is to decide what price you want to open the negotiations at.
Remember the asking price may or may not be an accurate reflection of the property’s value in the current market so ensure you research similar properties in the same area to decide what you feel it’s worth.
Ultimately, a property, like any asset, is only ever worth what someone is willing to pay for it at this specific point in time.
HOW DO ESTATE AGENTS WORK WITH BUYERS?
Agents are obliged to pass on your offer to the current owner, but they can advise them to reject it or accept it if they feel they can secure a better deal (and a bigger commission).
The owner will either accept your offer, counter it or simply reject it outright, batting the ball back into your court.
This could happen several times until you agree a final figure.
If there’s another prospective buyer in the picture, there is the risk of unwittingly entering into a price war where the seller or their agent plays you off against each other in a bid to push up the price.
Once you reach a price you’re happy with its important to explicitly state to the agent (ideally in writing) that your offer is dependent on them removing it from the market and is strictly subject to a survey of the property.
