Accepting an offer on your home marks a pivotal step in your moving journey, and therefore every offer requires careful consideration to ensure you make the right decision.
Here are some key factors to think about when evaluating an offer on your property.
Buying position
The term ‘buying position’ refers to the buyer’s readiness to proceed with the sale. Cash buyers, for instance, can often proceed quicker and with fewer risks, making them an attractive option even if they offer slightly less. On the other hand, buyers relying on a mortgage might face delays or complications, especially if the lender undervalues the property.
When evaluating the buyer’s position, you should consider:
- Are they cash buyers or dependent on a mortgage?
- Do they have a mortgage agreement in principle?
- Are they involved in a chain?
- What’s their deposit size? A higher deposit typically signals a more secure buyer.
The offer price
The most obvious factor to consider is the price offered for your home. While it can be tempting to go for the highest number, it’s important to weigh this against your initial asking price and recent sales of similar properties in your area.
Related: What is a ‘guide price’?
Ask yourself:
- Is the offer fair based on market conditions?
- Is it close to your expectations?
- How quickly do you need to sell?
If you’ve been on the market for a while, a lower offer might be worth considering to avoid prolonged delays. Conversely, in a hot market, you might hold out for a higher bid.
Chain status
If the buyer is part of a property chain, this can affect the speed and certainty of the transaction. Chains increase the risk of delays or deals falling through because the sale depends on other transactions completing successfully.
Questions to ask include:
- Is the buyer in a chain?
- Have they already sold their home, or are they just starting the process?
- How long is the chain?
A buyer with no chain (such as first-time buyers or cash buyers) might be worth prioritising to ensure a smoother sale.
Related: Common property chain problems and how to avoid them
Offer conditions
Pay close attention to any conditions attached to the offer. These could include:
- Subject to sale: The buyer’s offer might be contingent on them selling their own property first.
- Survey results: Most buyers will commission a survey, and they may request a reduction in price if significant issues arise.
- Timing preferences: Buyers might have specific dates they want to move in by, which could affect your plans, particularly if you’re looking to buy a new property yourself.
Understanding these conditions will help you determine whether you’re willing to negotiate or if they introduce too much uncertainty.
Timescales
Consider your timeline. Are you in a rush to move, or can you afford to wait? If you’ve already bought another property, you might prefer a quick sale, even at a lower price. On the other hand, if you’re not in a hurry, you may want to wait for a better offer.
Find out the buyer’s expected completion date, and whether this aligns with your schedule. Flexibility on either side can sometimes make an offer more attractive.
Negotiation potential
Rarely is the first offer the final word. Consider how much room there is for negotiation. Are you willing to meet in the middle? If the offer is too low, think about whether the buyer might be open to a counteroffer.
When negotiating:
- Have a clear bottom line: Know the lowest price you’re willing to accept before entering negotiations.
- Be aware of your leverage: In a seller’s market, you can afford to be firmer. In a buyer’s market, you may need to be more flexible.
Related: How to negotiate with a buyer
The housing market
Understanding the current state of the housing market will help you assess the strength of any offer. If demand is high and properties are selling quickly, you might have more confidence in holding out for a better deal. However, if the market is slow, you may want to consider any reasonable offer to avoid your property sitting on the market for too long.
Costs involved in selling
Finally, remember to factor in the costs associated with selling your home. These include estate agent fees, legal costs, and moving expenses. If the offer barely covers these costs, it may not be the right one for you. Be sure to calculate your net profit after all fees and expenses to determine whether the offer is financially viable.
Thinking of moving this year? Contact your local Whitegates branch for expert advice and guidance.
