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Best and Final Offers

Thu 10 April 2014

Spring is well and truly on its way and with it this year comes a much improved feel to the Mid Wales property market. There are some sure signs that the market is much stronger this year and that all importantly some confidence has returned.

 

Honestly, we are still yet to see the increases in property values that other areas of the UK are experiencing but there are undoubtedly much higher volumes of buyers now looking to purchase something right now! More importantly the majority of these purchasers have the ability to proceed as they have managed to sell their own property or are now able to secure mortgage finance. All in all a very positive first quarter in 2014.

Hooray!! I here all those people with houses on the market cry!!!

On the back of this increased strength and confidence we have once again started to see, the occurrence of properties going to, “Best and Final Offers.”

Indeed the property market can be like that good old adage, “waiting for a bus.” You have no interest in your property for months on end and then out of the blue come two or even more potential purchasers at the same time. As a seller this can be wonderful news as the interested parties bid against each other pushing the price of the property up to try and secure a purchase. But, how and when do you conclude things?

Just last night I had offers of asking price on a particular property between Welshpool and Newtown from two interested parties with exactly the same buying strength. So how does this issue get resolved and who ultimately will buy the property?

One solution is to go to Best and Final Offers. I am in fact on the very morning of writing this eagerly awaiting the post as I am expecting three envelopes containing Best and Final Offers for another property that we are selling just outside Welshpool. Further, I have been instructed today to go to Best and Final Offers on a building plot which I am currently marketing. So what is it all about?

As a seller, to have buyers battling over your property is an ideal situation. To achieve this healthy competition the best piece of advice that I can give you is to price your property competitively in the first place. The key is getting as much interest as you can to create that competition. If you pitch the price too high then you will struggle to get interest. I often hear people say “you can always bring the price down but you can’t put it up.” NOT SO!!! Property is worth what someone is willing to pay for it, be that upwards or downwards of your asking price. Properties are starting to exceed their asking prices again in some instances but they have to be priced correctly in the first place to achieve this.

Best and final offers means that instead of toing and froing between potential purchasers, a deadline is set by which time each interested party must write to your agent giving details of their highest and final offer and how they intend to fund the purchase. This allows you to work to a set timescale and as no potential purchaser knows what the other might offer, each party will have to show their hand and be prepared to pay what they feel the property is worth to them personally. This allows the market to decide what the property is worth to the individual and you the seller can consider all offers and accept, if you wish, the one that you feel most appropriate. This could of course result in offers above and beyond your expectations!

From a buyer’s perspective, I appreciate that to find yourself in this position can be a little frustrating. It would be remiss of me not to give you some advice as well;

Try not to get carried away in the heat of the moment remember your financial limits and stick to them. Ensure that you have all your finances sorted and importantly if you have to submit a best and final offer make sure that you provide evidence to support your offer such as proof of funding or mortgage agreement and solicitors details. Be sure to fully explain your ability to proceed as even if you do not submit the highest offer you might still get the property if your buying position is more favourable than that of others!

Whether buying or selling this spring good luck! If you would like information, help, or assistance on any property matters across Mid Wales please don’t hesitate to get in touch.

Tom Carter

O7855 834 282

tom@mccartneys.co.uk

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