Receiving and evaluating offers when selling your home

A buyer wishing to make an offer on a property needs to speak to the estate agent marketing it. They can do this verbally (over the phone or in person) or in writing (via post or email). However, even if the offer is accepted it is not legally binding until exchange of contracts.

At a glance - receiving offers when selling a home

What should you consider before accepting an offer?

You do not need to make a decision straight away. Think carefully about the offer being presented to you. Have you received any other offers? How long has the property been on the market? Is the buyer able to proceed with the transaction? Are they a cash buyer, chain-free and able to move quickly? All these factors will influence your decision about whether to accept or decline the offer.

It is perfectly acceptable to wait 2-3 days before making a decision about an offer.

Should you always accept the highest offer?

No, the highest offer isn’t always going to be the right offer. If the prospective buyer is not in a position to proceed, eg. they are selling at the same time and have not yet received an offer on their property, then a lower offer from a buyer who is able to proceed is likely to be more favourable.

What makes a strong buyer?

As we have mentioned, buyers are in a favourable position if they are chain-free, or can accelerate the house selling process. Long chains of buyers and sellers often extend the period between an offer being accepted and completion of a sale, so an offer from a first-time buyer, or someone without their own property to sell, is always good news. Similarly, if they are a cash buyer, and so are not reliant on mortgage funds, this also helps speed things along.

Accepting, rejecting and negotiating offers

Rejecting an offer:

One of the most common reasons for declining an offer is that the potential buyers have offered an amount lower than you are willing to accept. Other reasons might include the position of the buyers not being favourable to your requirements e.g. they have yet to have an offer on their own property for sale.

Accepting an offer:

Once you have received an offer you are happy with, inform your estate agent. Make sure you discuss all the details and agree estimated dates for exchange and completion. It can be useful to put this in writing for the estate agent and the buyer – it will not be a legally binding contract, but helps to make sure everyone is in agreement. One element to confirm is whether the property will be taken off the market following the acceptance of the offer – some sellers prefer to keep the property on the market for a while.

Renegotiating an offer:

If you have declined an offer, that doesn’t mean you’re not interested in hearing from that prospective buyer again. The estate agent can give you an idea of what the person thought about the property, and whether they have a budget in mind. Sellers can let the estate agent know the kind of figure they are willing to accept, and wait for the buyer to make a revised offer.

Do estate agents have to tell you about other offers?

Yes, the estate agent is legally obliged to communicate all offers to the seller, even if an offer has been accepted and the property taken off the market.

What are estate agents legally required to disclose?

It is also the responsibility of the agent to tell the seller the financial standing of the person making the offer – whether they have a mortgage in place, are a first-time buyer, a cash buyer or in a chain.

Offer agreed – what now?

After accepting an offer on a house, you are a big step closer to selling your property!

Negotiating the sale through to completion takes time and skill. There are a few tasks your chosen estate agent is now responsible for, following your acceptance of an offer:

• Written communication to all parties to confirm the agreed price and any conditions of the sale.
• Preparing a memorandum of sale.
• Ask the sellers and buyers for confirmation of their solicitor’s details.
• Take the property off the market if this has been agreed to by the seller.

It is now time to work with the estate agent to:

• Agree a date for a survey of your property.
• Agree a date for the exchange of contracts.
• Agree a proposed date for completing on the property sale.

During this time, your solicitors will be responsible for sending out a draft contract to the buyer’s solicitors. The buyer’s solicitors will be responsible for carrying out the preliminary enquiries. Both the estate agents and your solicitor should provide you with regular updates so that you are kept informed of the progress.

Exchanging contracts and completion

Exchange of contracts is the point at which the sale becomes legally binding. The buyer’s and seller’s solicitors send their respective clients’ signed contracts to each other, confirming the buyer’s commitment to buy at the agreed price and the seller’s intention to sell at the agreed price. The buyer pays a deposit, usually 10% of the purchase price, to the seller’s solicitor. If the buyer pulls out after exchange, the seller can claim those funds. Completion is the day when all funds are transferred, and the buyer can collect the keys to the property.

Get in touch with your local haart branch to discuss a free valuation of your home

If you’re thinking of selling, haart can support you every step of the way. Contact us today to enquire about a free valuation of your property.

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