THE SCARCITY OF GOOD PROPERTY TO BUY HAS NOT ONLY CAUSED HOUSE PRICES TO RISE BUT WHEN A GREAT HOME COMES ONTO THE MARKET THERE IS QUITE OFTEN MORE THAN ONE PERSON WANTING TO BUY IT.
We understand how stressful a home purchase can be so when you see your ideal home come onto the market, you want to have the best chance of securing it.
Please believe me when I tell you that we do not enjoy handling multiple interest. We would prefer to have a plentiful selection of homes to offer our buyers rather than selling the same home five times on the first day of marketing. From a business point of view, 5 buyers to one home creates just 1 sale and four upset people. We are determined however to handle it professionally so that the disappointed parties are philosophical rather than resentful.
When more than one person expresses an interest in buying a home most agents including us favour the “sealed bid” approach. The alternatives are either first-come-first-serve or an auction and both cause buyers greater disappointment or stress. The sealed bid gives everyone equal opportunity and time to first consider and then make their offer. It enables the seller to receive all offers at the same time and have certainty that their home has been fully exposed to the market.
You will not be surprised to hear that we are often asked for guidance on what could be done to guarantee success! Assuming that buyer, seller and agent maintain integrity, we cannot guarantee success but fundamentally the seller is going to choose the bidder who not only offers a high price but can be relied on to go through with it quickly so here are some things that can tip the balance.
1. Don’t hold back!
Although by law we have to put all offers to a seller even after an offer has been accepted, the vast majority of our clients would not respond favourably to a higher offer coming in from someone after the bidding process is over. It does not make that buyer look reliable or honourable
2. Make sure that you have your finance in place.
Especially now, it is vital that you do not go looking for a property before you have a mortgage agreement in principle. The mortgage application process can take some time and the criteria is far more strict than before.
3. Try to commit as much cash to your purchase as possible
High loan to value mortgages take longer to go through and are more sensitive to a surveyor who woke up in a bad mood!
4. Offer a figure a few thousand pounds above a multiple of five.
It means that you might be higher than another offer that came in at £xxx,xx0 or £xxx,xx5
5. Be aware of stamp duty thresholds.
6. Provide any information that may help the seller to trust that you will proceed to completion quickly and not change your mind.
For example, a statement such as, “I already own an apartment in this building” or, “I have been waiting for this specific property to come to the market” reassure the seller that you know what you are buying.
I hope that this has been helpful. Good luck securing your next purchase!