Our experience in the property market, and particularly with property to rent in Liverpool means we’ve become accustomed to the house buying process. This post continues along the theme of hidden costs and how to make savings.
Making an offer and negotiating
If you’re making an offer on a particular property, the asking price must always be treated as a guide. The seller, like most negotiators, is trying to get the best possible deal and may not be expecting you to meet the asking price. It is very important to remember there will almost certainly be a counter off.
Deciding on an opening offer can be a precarious state of affairs. Too low and you risk alienating the seller or being outbid. Too high and you could end up paying too much for the property. It is prudent to firstly determine your maximum amount you’re willing to offer, and then consider how low you’d like to start your offer on the property.
To find this amount, glean as much information as you can about the sellers, the previous cost of the house (can be found on property aggregation sites) and the prices other homes in the area have sold for an current costs
Saving for a deposit
There are obvious benefits to putting down a large deposit when you start the home-buying process. The obvious one is that it will make it that much easier for you to get a mortgage. You’ll also immediately have equity in your property. The larger your deposit, the more protected you are in the event of your property dropping in value; the property would have to experience a drop in value the size of your entire deposit before you were in negative equity.
The first obvious step to saving a deposit for your home is to write yourself a budget. The second obvious step, and the one that will no doubt prove the more difficult, is sticking to that budget.
Evaluate all of your expenditure. Determine what is necessary (rent, council tax, etc) and what you could possibly cut back on or eliminate altogether.
Think about this;
- Can I afford Sky TV?
- Do i need to eat out more than once a week, can I bring food from home for lunch.
- Do I make a lot of expensive phone calls?
- Do I have too many credit cards? Should I consolidate my debt?
- The gym membership i never use
- Do I really need that new book/magazine/car/plasma TV/outfit etc, or do I just want it?
Thinking hard about these extra costs could really help you with paying a mortgage
Alternatively, If you’re looking for a house for rent Liverpool. Visit our sponsors at Bluerow Lettings.