Well, we wouldn’t be writing this if
the answer was yes. Unfortunately, the biggest offer won’t always be the best
and there are many reasons why.
It’s not about selling your home for
less than it’s worth, but it is about looking at the bigger picture. Is the
buyer with the highest offer ready to buy? Can they move quickly enough to meet
your timescale?
Remember, the highest offer means
absolutely nothing if the sale falls through.
In this quick read, we look at reasons
why the highest offer isn’t always the best, and why you should analyse all
offers before making a decision.
Is the offer subject to mortgage
funding?
Your highest bidder might be keen, but
do they have the money to buy your property? If they don’t yet have their
mortgage sorted out, you might be in for a nasty shock. Possible scenarios
include: no mortgage offer at all, not qualifying for the loan amount they need,
having their mortgage application rejected or down valuing your property.
Where does that leave you? Well,
nowhere. By chasing the biggest number, you may have overlooked someone with a
mortgage in principle ready to get the sale going. Worse still, you may have
had a lower offer from a cash buyer (the property equivalent of a pink unicorn)
which would have made the whole sales process faster.
Is the offer subject to sale?
This basically means the buyer won’t
buy your home until they sell their own. Welcome to the dreaded property chain.
The buyer might be offering you the highest price, but it means nothing if they
can’t sell their own property.
Timing
There are lots of issues when it comes
to timing. For example: maybe the buyer is in such a hurry to move that you
can’t meet their time expectations, perhaps their mortgage in principle is
coming to an end and they need to speed things up. Or, what if you’ve found
your dream property but the buyer wants to take things slowly, putting you at
risk of losing your next home?
How to analyse offers
Quite simply, you need to communicate
with your agent. They’ll have an outline of each buyer’s situation so you can
make an informed decision rather than being swayed by £ signs.
Ask your agent questions such as:
–
Are they a
first-time buyer?
–
Are they in a
chain?
–
Are they a cash
buyer?
–
Does the buyer
have any contingencies?
Understanding who your buyer is and
how fast/slow they can move forward is invaluable and no one will know more
than your selling agent.
If you’re
selling your property, get in touch with Ridgewater Sales and Lettings
today. We’re ready to help you make your next move.