Best and final offers
Charlie Rearden of Stacks Property Search says, “Best and final offers is becoming standard for desirable properties in a market where demand exceeds supply. It’s never the buyers’ choice. It’s used by agents who have a number of competitors for a property and they want to bring the negotiations to a close. Historically it was used when there were several competitors, but increasingly used when agents know there will be competition.
“The agent sends everyone an e-mail saying ‘submit your best and final offer at x time on y day. Sometimes the lead time is short. Buyers are required to supply name, address, amount of offer, whether it’s subject to any conditions, and name of the buyer’s solicitor.
“It’s not all about price, the vendor and agent will weigh up all the information and make a choice based on the size of the offer and the situation of the buyer. So buyers will need to present themselves in the best possible light, for example, proof of finance, ability to proceed quickly.
“Making an early asking price offer can prevent a property going to best and final offers, but with prices on the rise, that’s not necessarily enough to secure a deal.
Charlie Rearden says, “Buyers need to be bold to operate in this market. It’s important not to leave anything in the kitty that you would regret if you don’t secure the property, but equally sometimes you need to be prepared to walk away.
“The bid itself is important, but equally important is the dressing of your offer, demonstrating your commitment, proceedability, ability to exchange quickly, flexibility of terms. Be prepared to enter a beauty parade as well as a bidding competition. Vendors can choose their buyer; cash is king, but failing that, a buyer who has documented proof that they have immediate access to funds will move up the pecking order.”
Ed Jephson of Stacks Property Search says that 90% of properties between £800k and £1.5k in the South Hams are going to best and final offers.
Stacks Property Search, 01594 842880 / www.stacks.co.uk