Best and Final Offers – how does it work?
When a property is in high demand and more than one buyer has made an offer, sometimes the vendor can struggle to decide which offer to go with, particularly if several buyers are in the same position. Once upon a time the agent would have asked the buyer to submit their final offer via a sealed bid (their offer in writing in a sealed envelope, posted or dropped in to the estate agent). These days best and final offers are asked for.
What is a Best and Final Offer?
It’s your final opportunity to make an offer on a property. It isn’t legally binding, but it is an opportunity to give all parties a fair chance of having their best offer considered in full.
How much should you offer?
It can be very difficult deciding how much to offer. You don’t want to miss out on the property, but you don’t want to feel you’re paying over the odds. We always advise offering the maximum you would be prepared to pay, it’s your last chance to do so and if you do happen to miss out you know you couldn’t have done anything more.
How to offer?
Ideally in writing, by email is fine.
Present yourself in the best possible light, make sure you inform the agent what your position is – first time buyer, sold subject to contract etc.
Show that you can afford to purchase the property – provide the agent with a copy of your mortgage in principle or proof of funds.
If you’ve agreed a sale on your property give details of your conveyancer and estate agents details.
What if your offer is rejected?
It’s disappointing to receive a call from the agent to say the seller has decided to accept an offer from another buyer, but stay in touch with the agent, they will let you know if the sale falls through or if anything very similar comes onto the market.