And finally:

• NEVER make your final offer your first one

If you can afford to go higher, don't give the vendor that knowledge. Go LOW to start off with and then see what the counter position is. However, don't be silly with that first offer. The vendors may consider you a time-waster and simply dismiss you out-of-hand. Ask the estate agent what THEY consider a fair valuation and then go below that. You'll all probably end up at their figure anyway, provided there aren't large amounts of extra work that need doing on the building.

Getting the property at the right price is not only important from the point of view of how much you'll pay, it is also vital to whether you'll get a mortgage or not.

If a lender considers that you're paying too much for something, and the mortgage is a high percentage one (eg. above 75% of the value of the property) then you may find that the mortgage terms become less attractive. In the extreme you may not get a mortgage at all.

Lenders charge different interest rates according to how large a percentage of the valuation you're taking as a mortgage. A low percentage (75% or below) will get you the best terms. As the 'debt percentage' rises above that then the terms become progressively less attractive. In addition, you start to pay the unwelcome Mortgage Indemnity Guarantee Premiums (more of these later). A mortgage will be given on THE LESSER of the valuation FOR MORTGAGE PURPOSES or the purchase price. A valuation carried out by a building society valuer rarely matches one done for yourself (although they should do).

The ideal is obviously to get the valuation at, or above, the purchase price. You can rarely afford a lesser position than that.

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building society  mortgage  mortgage indemnity guarantee  valuation