5 Offers made... Do we accept best offer OR engage in Best and Final offers?

danlightbulb

Well as my previous posts have been removed then I will state my view without being angry.

Yes, I was very angry. The reason is that the OP didn't provide any detail about the offers made and it came across to me that they had simply preferred the cash buyer (most likely a BTL) without any consideration of the circumstances of the other buyers. Why does this make me angry? Because it perpetuates the issues with the housing situation in this country and means that potentially, a FTB family yet again misses out to a cash rich investor. Yes these are stereotypes but as the OP didn't provide the information about the buyers/offers then I made assumptions. Not many FTBs have £150k in the bank.

Now if you come asking for advice on what offer to take, then its reasonable to expect people to have their own opinions. You've now gone to best and final, which shows the hypocritical nature of your position having already chosen an offer and now backtracked on it. Why could you not choose your preferred buyer based on what they have done to be able to afford this house (saved up for years maybe, worked 2 jobs with a family, a family instead of a party rich boy - whatever), and then opened a negotiation with them to see if they would pay a little more given what offers have come in? That is far fairer and more moral.

Its highly hypocritical, that had the potential buyers of your property come and posted here about what offer to make, then they would have likely been advised to offer slightly under to start with, and the forum would have been supportive of them getting the house cheaper than advertised. Now, as its you the seller (in the position of power in the transaction I might add) all of a sudden the forum switches to a view where the potentially deserved buyer is exploited and done over against either a cash rich buyer or a best and final offers system designed to exploit FOMO of buyers.

RelievedSheff

I think when there are so many offers on the table that best and final offers is the right way to go. It gives everyone interested in the property the chance to submit what they believe is their best offer. It isn't necessarily going to be the cash buyer who submits the highest offer.

danlightbulb

RelievedSheff said:

I think when there are so many offers on the table that best and final offers is the right way to go. It gives everyone interested in the property the chance to submit what they believe is their best offer. It isn't necessarily going to be the cash buyer who submits the highest offer.

It’s a seller’s dream, several offers on the table and a perfect opportunity to play one off against the others. To fuel nervousness the agent is not revealing what offers they’ve received. Enquiries are met with a polite: “I’m sorry I can’t release that information”. Can’t release that information? Is there now a law in the UK against transparency in market transactions?

There is a law against giving information to one party and not to all and EAs are obliged to take instruction from the seller. However, the logical, transparent and morally coherent procedure is to publish offers openly on-line and ask for higher bids. The Property Ombudsman’s 2014 code of practice authorises this practice.

When they go to best and final offers EAs are deliberately not acting transparently. They are hiding behind the legal obligation not to reveal rival offers to one party in order to deliberately withhold information from all. And this is vital information for people engaged in probably the most important financial transactions of their lives.

If the property was a repossession the agent would be legally obliged to publish offers. Likewise, in property auctions there is a legal requirement that bids are made openly and transparently. Why don’t the same rules apply to sale by private treaty?

Estate Agents frequently tell buyers that best and final offers constitute “a kind of informal auction”. This is utter rubbish. Auctions work for buyers and sellers alike because they involve transparency, information and enforcement.

Transparency Vs Deception

In auctions everyone knows that the property will go to the highest bidder who will not pay more than a thousand pounds over the next highest bid.

With best and final offers, the buyer is shooting in the dark trying to double guess rivals whose number, identity, bids, buying position, and even their very existence, are unverifiable. There is only the EA’s word that the whole process is not a deception.

https://www.vintagepropertyrestoration.co.uk/blog/61-best-and-final-offers-a-flawed-and-immoral-practice

anteguardian

I agree with many others here, please don’t mess people around...
Just go straight to best and final offers as it might seem exciting for you, but it’s actually very stressful for potential buyers and if you drag it on it looks badly upon you as it comes across (to me anyway) that the seller isn’t serious, is indecisive and is a risk later on in the buying process. 

Just on danlightbulbs comments - whilst there is a lot of disagreement, I’ve actually been in this situation recently...
Im a FTB that has worked hard to be able to afford my first home, and luckily my offer was accepted on the first house I went to view (and loved).
My offer wasn’t the highest, as the vendor and EA were completely honest with me, but accepted my offer because I was the only one without a chain and morally they said they felt like I was the right choice for them to go with based on both of our circumstances.
This is something that I completely respect them for now and have had such a good experience with both the EA and Vendorsz

Just an FYI... 

 

Scotbot

Five offers suggests you underpriced the property so go for best and final offers then pick the most suitable based on both the amount and the buyers position. You don't  have to go with the highest and it is not messing people around as long as you have not already accepted one of them.  It is only an extra day and your responsibility is to yourself and your family not the buyer

RelievedSheff

danlightbulb said:

RelievedSheff said:

I think when there are so many offers on the table that best and final offers is the right way to go. It gives everyone interested in the property the chance to submit what they believe is their best offer. It isn't necessarily going to be the cash buyer who submits the highest offer.

It’s a seller’s dream, several offers on the table and a perfect opportunity to play one off against the others. To fuel nervousness the agent is not revealing what offers they’ve received. Enquiries are met with a polite: “I’m sorry I can’t release that information”. Can’t release that information? Is there now a law in the UK against transparency in market transactions?

There is a law against giving information to one party and not to all and EAs are obliged to take instruction from the seller. However, the logical, transparent and morally coherent procedure is to publish offers openly on-line and ask for higher bids. The Property Ombudsman’s 2014 code of practice authorises this practice.

When they go to best and final offers EAs are deliberately not acting transparently. They are hiding behind the legal obligation not to reveal rival offers to one party in order to deliberately withhold information from all. And this is vital information for people engaged in probably the most important financial transactions of their lives.

If the property was a repossession the agent would be legally obliged to publish offers. Likewise, in property auctions there is a legal requirement that bids are made openly and transparently. Why don’t the same rules apply to sale by private treaty?

Estate Agents frequently tell buyers that best and final offers constitute “a kind of informal auction”. This is utter rubbish. Auctions work for buyers and sellers alike because they involve transparency, information and enforcement.

Transparency Vs Deception

In auctions everyone knows that the property will go to the highest bidder who will not pay more than a thousand pounds over the next highest bid.

With best and final offers, the buyer is shooting in the dark trying to double guess rivals whose number, identity, bids, buying position, and even their very existence, are unverifiable. There is only the EA’s word that the whole process is not a deception.

https://www.vintagepropertyrestoration.co.uk/blog/61-best-and-final-offers-a-flawed-and-immoral-practice

So what would you suggest if you have five offers on the table?

The vendor has every right to aim for every last penny they can get for their property. With so many offers on the table best and final offers is a fair way to achieve this while still giving every potential buyer the same opportunity to increase their offer. None of the other buyers know what the other offers are so they are all bidding blind.

Of course the buyers don't have to submit a bid if they feel that the process is unfair. They are free to just walk away from the situation. No one is forcing their hand.

SameOldRoundabout

So what would you suggest if you have five offers on the table?

The vendor has every right to aim for every last penny they can get for their property. With so many offers on the table best and final offers is a fair way to achieve this while still giving every potential buyer the same opportunity to increase their offer. None of the other buyers know what the other offers are so they are all bidding blind.

Of course the buyers don't have to submit a bid if they feel that the process is unfair. They are free to just walk away from the situation. No one is forcing their hand.

I think PP might feel differently if they weren’t a FTB. As relievedsheff says, vendors have every right to get as much as they can from a sale on a house they may have cared for and updated etc. There is absolutely no moral obligation to take a lower offer just because it’s a FTB who’s saved up?! Buying a house is a competition, a blind one at that when it comes to knowing who you’re up against, you can’t win them all. The anger at someone daring to choose financial gain over taking pity on a FTB is wild. 

OP I hope your offers went well for you. 

getmore4less

I would have given it the weekend to try and get more viewings and interest.
The EA should have been putting the squeeze on all the potential  buyers to up their offers anyway

What do the places rent for that gives a good idea of the the investor value and the low ball pricing. 
Mortgages are usually not he thing that blocks a house sale, money at the upper LTV(85%+) levels is  tight so I would  consider them a risk, but anyone with 20%+ and should be OK unless a difficult to place borrower.

What is more important is a motivated mover, should be easy to determine that for your current front runner if that local.

Unicorn_cottage

@fackers_2 Let us know how you get on? Where are you in SW? Am wondering if Bristol?

fackers_2

Unicorn_cottage said:

@fackers_2 Let us know how you get on? Where are you in SW? Am wondering if Bristol?

We received the final bids around midday today and we accepted the top offer to FTB within 30 minutes, We indeed gained a few extra £K in doing so... The Person who’s offer was accepted was really excited to learn she won the bid. We feel happy of the outcome for the person who it sold to but that it’s all done in regards to the viewings and offers.

We’re near there.