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'.