Best & final offers

C1996

I’m interested to know what sellers look for from buyers during the BFO process? Is it mainly the buyers position or how much they can make from selling? 

TheJP

Both, however what is more value to you? Extra money but uncertainty on mortgage valuation or a good price with a proceedable buyer.

lookstraightahead

TheJP said:

Both, however what is more value to you? Extra money but uncertainty on mortgage valuation or a good price with a proceedable buyer.

I had written three paragraphs with the same info that you had put into one 😇

C1996

TheJP said:

Both, however what is more value to you? Extra money but uncertainty on mortgage valuation or a good price with a proceedable buyer.

I’m in a situation where I’ve had to make a BFO, I feel that I’ve offered fairly & I’m in a good position. I’m just a bit anxious as I don’t know other peoples positions & was just interested to know. 

I suppose it is entirely down to the seller and what they value the most. 

TheJP

lookstraightahead said:

TheJP said:

Both, however what is more value to you? Extra money but uncertainty on mortgage valuation or a good price with a proceedable buyer.

I had written three paragraphs with the same info that you had put into one 😇

I blacked out, what happened?

theartfullodger

What is best is often different for different people.  Some people might care about e.g.  speed rather than price, or cash buyer rather than uncertainty of mortgage approval and amount. Or will they accept things included or not...

Flogged one (late brother's house) in past 6 months.  Hardly touched since 1971, needed but refurb   We weren't concerned over timescale, so only really IN OUR CASE cared about money.  Sorted, no later negotiation, price stuck to.

But often BAFO is not final.

In other words, it depends.  

lookstraightahead

TheJP said:

lookstraightahead said:

TheJP said:

Both, however what is more value to you? Extra money but uncertainty on mortgage valuation or a good price with a proceedable buyer.

I had written three paragraphs with the same info that you had put into one 😇

I blacked out, what happened?

Must be that one in a million chance 🤣

YoungBlueEyes

I've seen BAFO from both sides recently. My house is on the market, lots of viewings and offers, my EA said go to best + final and see what you think. I took the 2nd highest offer as she was in a good position and prepared to wait. (She'd viewed next door when it was for sale and missed out so she really wants my house and is prepared to wait for it.)
We're viewing and offering on houses. One last Saturday was a house we like, in a good area, so we offered over asking. Whilst the seller was thinking about it they got another offer for a couple of grand less but they're a ftb with a "good deposit" (the EA told me) so they went with them.
It's not always about the money, but sometimes it's just about money.

Thrugelmir

Silly over the top offers can soon start tumbling down. Cash buyers are better than those requiring a mortgage. As the mortgage lender might well disagree with the valuation made by the potential purchaser. 

Richiem1987

If you know who the bidders are, such as who are the cash buyers and who are buying on a mortgage, FTBs etc, then if you feel the bids have gone over 10% of asking (maybe even 5% going forwards), then if I was in that position, I would not take any offers from FTBs if it was the highest, and go with the cash buyer instead or those who are selling up and are likely to have a lower LTV percentage, but its still a gamble. The main reason for FTBs is the danger of a down valuation and renegotiation, where a cash buyer would have paid more, and in the case of a mortgage port, may be able to settle on a higher LTV with their lender. 

In the case of the current market, with bidders easily into double figures, then you are probally not going to have all the information on all the bidders. 

NameUnavailable

I came up against 'best and final' offer requests a few times when I was trying to buy last year. Every time, time agent came back after the deadline to say they'd had several similar offers and were giving some parties the chance to make a further 'best and final' offer. I didn't want to play games, or find myself overreaching, so I stuck to my original offers.

In hindsight I should have just stuck in am 'ambitious' figure and then renegotiated after survey/mortgage offer!

The place I ended up buying had a higher offer than mine but that buyer dropped out a week later....