Page 18 - August 2023

EXPERT ADVICE DREAM HOMES

How much should you offer for
Room to
your dream home? breathe

Struan Ferguson, Partner at Peebles-based Blackwood & Smith LLP,
explains what you need to consider before submitting an offer.

he question of how much to offer on a quotation for the likely purchase costs, and be
property doesn’t have a definite answer. aware of Land and Buildings Transaction Tax This spacious country home offers plenty of space to stretch
TIt’s not an exact science, but I would (LBTT), which changes according to the exact out into a slower way of life.
suggest that there are four key steps to consider price paid.
when deciding on your final figure.
Take advice
Affordability Unless you’re a property tycoon, your solicitor
This is the first, and most important, thing to will know a lot more about purchasing property
consider. You need to know what your budget than you do. We submit offers every day – some
is. If you require a mortgage, it’s very important are successful, others are not; but this gives us
to know exactly how much you can borrow, so a picture of what is happening in a constantly
speak to your lender or a mortgage adviser. evolving market. We don’t have crystal balls; we
Remember, your lender will base their lending are still guessing, but it’s usually an educated
on the lower of the price you pay or the Home guess. ESPC solicitor estate agents can also
Report valuation – so if you offer above the give you guidance on what similar properties
Home Report valuation, you’ll be funding the have sold for in the local area.
part of the price over the valuation from your
own funds. What is it worth to you?
Having calculated what you can afford, and
Make sure to budget for additional costs taken advice from your solicitor, the hard part is
incurred; a reputable solicitor will provide a working out what the property is worth to you.
Is this your one and only dream home, or just
one of many that you like? Would you regret
not offering more if you didn’t get it? Would you
regret offering too much if you did? Only you
will know these answers.

Cross your fingers
Regardless of your budget, the advice you
have taken and how much thought you’ve put
into your offer, there’s always a chance that
someone else has made a higher one (or one
with less conditions). So, you do need to have
some luck on your side too!

For more from Blackwood & Smith LLP, visit blackwoodsmith.com or call 01721 720131.

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