Dealing with an offer
Once an offer is made to you have some decisions to make:
If the offer is less then you are willing to accept, ask your estate agent if the interested party raised any issues with the property to explain the shortfall in the offer.
In order to determine the strength of your position consider the following:
• Compromises you know the buyer would be making which would affect how much they are willing to spend (lack of parking, for example) but don't forget that another buyer in the future may not be making any compromises.
• Asking prices and sold prices of comparable properties in the same area (if a similar property sold recently for less money use this, but bear in mind that the condition of the property may be different, and the property market will affect this).
• Your situation – such as how keen you are to move, the length of your chain, the time your property has been on the market, have you been forced to reduce the property price since being on the market, the number of potential purchasers who have viewed your property and if you have any other offers on the table.
• The buyer's situation – such as how much they love your property, the maximum you think they can pay, their ability to act speedily with a mortgage in principle, if they are a first time buyer or are reliant on selling a property to purchase.
• The market situation (are prices rising and so can you reject a lower offer on the basis of this, or is it a falling or static market where you should accept a lower offer on the basis that the value will continue to fall? Your estate agent may be able to advise you on whether the value has changed since coming to market and what interest there is in the property.) Once you have assessed these factors, you will be able to accept or reject the offer.
• Prospective buyers will often offer lower than the price they expect to pay because they expect the seller to negotiate.
• Ask your estate agent to help you maximise your selling price.
• Once you have accepted the offer, you should inform your solicitor of the situation to enable to conveyancing process to begin while you prepare for the move.
