Make an offer and check the property

Once you find the right property, you need to agree a price and check it carefully. After this lesson, you will be able to make a sensible offer and know which checks to arrange.

These checks are often called due diligence. Due diligence means doing careful research before you commit, so you know exactly what you are buying.

Deciding on your offer

An offer is the price you say you are willing to pay. Base it on facts, not feelings. Look at what similar properties nearby have sold for, the condition of the property, and how long it has been for sale.

Decide your highest price before you start. Then stay within it, even if other buyers are interested. It is easy to get carried away.

Make your offer through the agent, or directly to the seller if there is no agent. Customs differ widely, so ask a local lawyer or licensed agent how offers usually work where you are buying.

Conditions on your offer

You can often make your offer subject to conditions. A condition means the deal only goes ahead if something happens first. Common examples are:

• A satisfactory survey or inspection of the building.
• Your lender giving you a final loan offer.
• Clear legal checks on ownership and permissions.

In some places an accepted offer is not binding until contracts are signed. In others, it can become binding very quickly. Ask a local lawyer or notary before you sign anything or pay any money.

Checking the building

A survey, also called a building inspection, is a check of the property's condition by a qualified surveyor or engineer. They look for problems you may not see, such as damp, a weak structure or faulty wiring.

Choose a professional who works for you, not for the seller. Ask what the report will cover and what it will not. If the report finds problems, you can ask the seller to fix them, lower the price, or decide not to buy.

Your lender may also arrange a valuation. This is a check of what the property is worth, for the lender's protection. It is not the same as a full survey. You can find qualified people through our professionals directory.

Legal checks

A lawyer, notary or conveyancer should check the legal side. Ask them to confirm, at the very least:

• That the seller truly owns the property and has the right to sell it. Ownership is usually shown by a title deed or title record held by the land or property registry.
• That there are no unpaid loans, debts or claims on the property.
• That the building and any extensions had the permissions they needed.
• The exact boundaries and any rights others have over the land, such as a shared path.
• Any planned roads or building work nearby that may affect the property.

Never rely only on documents the seller gives you. Your lawyer should check the official records. This step matters even more where ownership records may be incomplete or out of date.

Protecting your money

Fraud is a real risk in property. Never pay a deposit or any other money until your lawyer confirms it is safe. Check bank details by phone with your lawyer, using a number you already trust.

Be careful of anyone who rushes you or asks for cash. A genuine seller will allow time for proper checks.

Common mistakes

• Skipping the survey to save money. Avoid this by treating a survey as protection against much larger repair bills.
• Paying money before the legal checks are done. Avoid this by waiting for your lawyer to confirm it is safe.
• Raising your offer in the heat of the moment. Avoid this by fixing your highest price before you start.

Key points

• Base your offer on recent sale prices nearby and on the property's condition.
• A survey checks the building, and a lawyer checks ownership, debts and permissions.
• Never pay any money until your lawyer has confirmed it is safe.