Garrington Property Finders: How to win the bidding game
- Credit: Alena Veasey/Shutterstock
Jonathan Hopper from Garrington Property Finders describes how a growing number of buyers are being invited to submit best and final offers and suggests how to handle these situations
Even with spring prompting more homeowners to consider selling their properties, the acute imbalance between the number of homes for sale and active buyers remains, creating fierce competition for the best properties and continuing upward pressure on house prices.
One way for selling agents to handle these pressurised conditions is to invite interested parties to submit best and final offers; not always the most popular means of selecting a successful bid as many buyers dislike the pressure and somewhat impersonal nature of the process. However, in this challenging and competitive market it is frequently considered the fairest and most decisive way to select a winning bid.
What are best and final offers?
Best and final offers are used by selling agents when there are several attractive buyers competing for the same property. Similar to sealed bids, where offers are sealed in an envelope and all opened at the same time, best and final offers are submitted in writing, usually via email, by a fixed time and date. The agent will review the offers and share the contents, and their recommendations, with their selling clients who usually make a final decision relatively quickly.
What to include
As well as the amount you wish to offer, it is important to explain your position in order to proceed: your access to finance, whether you will be buying with cash or a mortgage, and if you are in a chain, under offer or have nothing to sell. It is often helpful to explain your personal circumstances as well as expectations of timescales, and it can be prudent to have engaged a solicitor in advance so you can also share their details.
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How to bid successfully
Winning bids are not always the highest price, so understanding the seller’s motivation to sell is of paramount importance. Of course, every seller wants to achieve a good price, so it is important to do your homework to understand the prices similar properties have sold for recently and the relative rarity of the property that you are attempting to purchase.
Aside from the amount, the ability to act particularly quickly or slowly, the appeal of your circumstances, the lack of onerous conditions or your long-term plans for the property may also affect your chances – all of which depends on the motivation of the vendor.
Submitting best and final offers can be stressful and easily misplayed. Whatever the outcome, it is important to feel that you have given it your best while not getting too carried away. An experienced professional property finder may increase your chances of success by helping you present your offer in the most enticing manner while ensuring your goals are achieved.
If you are considering your property options and would like more information on how to better navigate your local property market, contact Garrington to arrange a no-obligation discussion.