Carrying out Your Research

Before making any offer, you should find out as much as possible about the property, including:

1. How urgent a sale is.
   Some vendors might tell you outright that they must sell by a particular date and that they will accept any reasonable offer. You may be able to find out from neighbors why someone is selling, which might indicate whether an offer would be accepted.
2. The state of the property market.
   Buying when the market is flat or during the winter when there are few buyers around may get you a bargain, although you will have to come in much nearer the asking price when the market is buoyant.
3. The neighbors and neighborhood.
   If there are many apparently desirable properties for sale in a particular area that have been on the market a long time, you should find out why.
4. Whether the asking price is realistic.
   Compare with similar properties in the area. If it has been on the market for a long time, it may be overpriced, unless it has obvious faults.
5. The condition of the property.
   You may be able to negotiate a substantial reduction if there's a lot of work to be done.
6. How long the property has been on the market. If it has been on the market a while - why it hasn't sold.
7. Whether the asking price has been reduced.
8. Why the owner is selling.

Some of these points indicate how desperate a vendor might be to sell. Find out how long the property has been on the market - a good clue is when a property has been reduced in price, which may be indicated in an advertisement or an agent's data sheet. Generally, the longer a property has been for sale, the more likely a lower offer will be accepted.