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Page 6 of 8
Buying Premises
5. Making an Offer
Once you have found suitable premises, make a conditional offer in writing. Your professional adviser can advise you on price and wording.
5.1 Make it clear exactly what the conditional offer is conditional on. For example:
- The results of a property survey.
- Planning permission or other approvals.
- Confirmation that any previous occupant has moved out ('vacant possession').
- Contract conditions and property searches.
- Finance being arranged.
5.2 Propose a price.
- Make an offer below the asking price, and below the maximum you can afford, to give yourself room for negotiation.
5.3 Be ready to negotiate on price.
- Find examples of similar properties which are on the market for less.
- Quote the price of any repairs or alterations you will need to make.
- List any problems with the property, such as noise or lack of services.
5.4 If appropriate, negotiate a 'lockout agreement'.
This prevents the vendor negotiating with other potential buyers or accepting other offers, as long as you exchange contracts within a given time.
- If you do not do this, the vendor may seek other potential buyers, while indicating that the property is 'under offer'.
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