Offer negotiation process

dunroving

What is the typical process for negotiating offers when two buyers submit offers around the same time? I'm familiar with closed bids here in Scotland but is it acceptable to negotiate with two buyers at the same time, until one makes an offer you decide to settle on, at which point you inform the other buyer they are out of luck?

dunroving

I meant to also add: What information can the estate agent give one buyer about other offers? I have heard it said many times that an EA can't tell a buyer "We've had an offer from another buyer, of £150,000". But for a house I was looking to buy earlier this year, I (buyer) was told exactly that. Is that correct? Bear in mind that I am in Scotland, though we currently are not going to sealed bids or best and final offer.

davidmcn

Not sure whether you're the seller or buyer? Is the property being marketed via an estate agent, or a solicitor, or otherwise? (more rules for solicitors)

The norm would certainly be to go to a closing date if there is more than one buyer currently in a position to offer, and I'm not sure why a seller would choose not to.

googler

dunroving wrote: »

What is the typical process for negotiating offers when two buyers submit offers around the same time?

Have both made you written offers, in writing, to your selling agent?


I'm familiar with closed bids here in Scotland but is it acceptable to negotiate with two buyers at the same time, until one makes an offer you decide to settle on, at which point you inform the other buyer they are out of luck?

Not clear here - you said they had submitted offers, but now you seem to suggest they have not yet done so.

Have they both noted interest via your selling agent?

Generally speaking, the process is that if you have sufficient interest, your selling agent declares a closing date for offers, and you pick the best from those at that time.

Sellers don't tend to negotiate with buyers. Solicitors and agents do that.

dunroving

I'm the seller. Property is being marketed by an EA, which is also part of my slight confusion, because it used to be (I think) that in Scotland, properties were marketed mainly by solicitors. Currently, the EA is in charge of negotiating (I don't want to negotiate directly with buyers), and I'm not 100% sure when it is handed over to the solicitor, but think it is when an offer is accepted (so, solicitor not involved in negotiating, although offer from one buyer is on its way from her solicitor).

From recent local sales, it seems the norm is to go to closed bids if the interest level is high, with a ballpark of expecting 4-6 bids. I'm not at that point yet, but have an offer in, with another buyer who is expected to submit an offer within next 2-3 days. We/I have been open with buyers about the situation (i.e., currently have multiple [2!] buyers who plan to submit offers this week).

Depending on what the two offers look like, we may go to closed bids but if we don't, I wasn't sure what the process is. I'm not keep on any silly boogery, but wondered what is the process (e.g., "we have received a higher offer from another buyer", etc.). I understand the legal aspect, i.e., until an offer is accepted, all other interest should be encouraged, and viewings continued, but wondered about people's experiences and opinions of how to deal with two competing buyers.

I should add that although Buyer #2 is very interested and plans to submit a bid (she currently has only just viewed the house, but knows there is a bid received), I always go on the principle of "I'll believe it when I see it"! I just wanted to anticipate the best way to deal with it. Am waiting on the EA being available for a call to also discuss with him.

davidmcn

If you've got 2+ buyers actually ready to submit offers then you set a closing date. I've never encountered it done otherwise.

dunroving

googler wrote: »

Not clear here - you said they had submitted offers, but now you seem to suggest they have not yet done so.

Have they both noted interest via your selling agent?

Generally speaking, the process is that if you have sufficient interest, your selling agent declares a closing date for offers, and you pick the best from those at that time.

Sellers don't tend to negotiate with buyers. Solicitors and agents do that.

I didn't say they had submitted offers. I have one written offer submitted via EA portal, with a written offer coming from her solicitor supposedly today. The other one is an expected offer (albeit I understand that is hot air until it's received). I am just trying to be proactive to anticipate the situation.

I don't plan to negotiate - I have handed this part to the EA, but he follows my instruction.

Scotland is becoming almost a hybrid state in that the "old" etiquette is not always followed. Reistering a "note of interest" is doine by some solicitors and EA's around here, but not others. In this case, both buyers have declared they are definitely interested in submitting an offer. One has submitted her offer, but she has had a few days to think about it. The other buyer has only just viewed, and is coming for a second viewing tomorrow to ask further questions and check out some other things to help her decide on her offer.

googler

dunroving wrote: »

I'm the seller. Property is being marketed by an EA, which is also part of my slight confusion, because it used to be (I think) that in Scotland, properties were marketed mainly by solicitors.

Correct


Currently, the EA is in charge of negotiating (I don't want to negotiate directly with buyers), and I'm not 100% sure when it is handed over to the solicitor, but think it is when an offer is accepted (so, solicitor not involved in negotiating, although offer from one buyer is on its way from her solicitor).

Also correct. EA will most likely handle up to point where they verbally accept the winning offer, then forward to sol for them to issue qualified acceptance in writing

From recent local sales, it seems the norm is to go to closed bids if the interest level is high, with a ballpark of expecting 4-6 bids. I'm not at that point yet, but have an offer in, with another buyer who is expected to submit an offer within next 2-3 days. We/I have been open with buyers about the situation (i.e., currently have multiple [2!] buyers who plan to submit offers this week).

Depending on what the two offers look like, we may go to closed bids but if we don't, I wasn't sure what the process is. I'm not keep on any silly boogery, but wondered what is the process (e.g., "we have received a higher offer from another buyer", etc.). I understand the legal aspect, i.e., until an offer is accepted, all other interest should be encouraged, and viewings continued, but wondered about people's experiences and opinions of how to deal with two competing buyers.

The process typically is to leave it to your agent. That's what you're paying them for. They will contact you when you need to make a decision. If one of the offers is acceptable to you, you accept it and decline the other. If neither are acceptable, you decline both. Your agent will advise on the minutiae of declaring closing date with or without offers on the table

I should add that although Buyer #2 is very interested and plans to submit a bid (she currently has only just viewed the house, but knows there is a bid received), I always go on the principle of "I'll believe it when I see it"! I just wanted to anticipate the best way to deal with it.

The EA should "deal with it", with input from you at decision times.

dunroving

On a separate note, I recently experienced a hybrid "best and final offer" scenario in England! On that occasion, there was very high interest and multiple viewings over a 48-hr period following listing.

It wasn't formalised in the way it's done in Scotland, but the EA was strongly suggesting that any bid should be "serious" and that he would be recommending to the executors that they make a decision and move on - which they did. I was the successful bidder of 4.