By now you have a figure of what the property is worth – You then should decide what your maximum offer would be.

Your maximum price may be affected by factors, such as the amount of finance you can actually raise. If your estimate as to the value of the property you wish to make an offer on is above your budget, then you may be forced to adopt a strategy of offering to your limit and hope for the best!

Assuming that you have adequate finance, then consciously setting a maximum price means that you’ve set the boundaries for your negotiation. This price is your endpoint, not your start point. If it overlaps with the MINIMUM price that the vendor will accept, then there is a good chance that an agreement can be reached and a sale can proceed.

Knowing your maximum price will help you decide what you initial offer should be – but there is no magic formula that you can use to decide which is the right number to place on the table.

The idea of your first offer is to present a price that will either be accepted, or will trigger a counter-offer from the vendor / agent. As soon as you receive a counter-offer, if it’s in your price range, or close to it, you can feel confident that an agreement is achievable.

A final note about your first offer – in a very hot market – you may be better off placing your best offer immediately – if properties are being snapped up quickly you may only get one chance!