Best & final offers

lookstraightahead

NameUnavailable said:

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....

I never look at properties that say offers over, or in excess of. I just don't want to participate in a long drawn out game. Last time I literally just overlooked them. I was refused a viewing once because my limit was a asking price. It sold for £50k less in the end. I think the estate agent was just annoying people and no one could be bothered. Quite aggressive in their approach.

Noneforit999

Its situation dependent, what one vendor looks for may differ from another.

If the vendor has plenty of equity in the property, they may pick a cash buyer who offers less than a FTB who offers more simply because the risks are less and the process may be quicker without a lender being involved.

On the other hand if they literally need as much of the equity as possible for their onward purchase, they may pick the highest offer despite the lender and valuation risks.

Its about weighing up your own position as a vendor and the position of the buyers who have offered.

If a vendor is in a rush to sell (divorce perhaps) and their onward move is ready (moving back in with parents), they might look for a buyer who is in the quickest position to get exchange/completion done. However if their is another party involved (wife/husband) who want as much money as possible, they might want as much money as they can regardless of the time it takes.

There are so many variables involved for a vendor its impossible to predict.

As a vendor myself currently, we would have happily taken a FTB but if a cash buyer came along offering the same amount, I would have taken because the risks are less. Best and final is not always about the highest amount, a vendor would need to think very carefully about accepting the highest offer if it were from a FTB with only a 10% deposit. Anybody can offer anything but two months into accepting an offer, you could be back to square one if the valuation comes back less and the buyers cannot make the difference up. 

jcuurthht

I'm selling a vacated probate property. I don't have probate yet so I'm in no rush. I have best and final offers expiring today, at which point EA will not accept any further offers.

So far I have 3 at asking price, 1 at +1% and one at -1%. A mix of investors and normal buyers.

I don't really have a game plan yet. I'll probably go with a cash buyer who has offered asking (may increase offer today) as it'll be quicker.

Flugelhorn

YoungBlueEyes said:

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.

I think this is the interesting thing about the market - so easy to sell and so hard to buy, people get a good offer (sounds like you have and great that she is prepared to wait) and then often (not always ) become buyers themselves with pressures from the rest of the chain. 

Friend (cash buyer) waiting on Nth BAFO today KFC it works this time

caprikid1

"Cash buyers are better than those requiring a mortgage. " This a myth.

Flugelhorn

caprikid1 said:

"Cash buyers are better than those requiring a mortgage. " This a myth.

why? I think I was a better deal when I was buying as a cash buyer (last 3 times) and I sold last two times to cash buyers - far less hassle than waiting around for those with a mortgage

Noneforit999

caprikid1 said:

"Cash buyers are better than those requiring a mortgage. " This a myth.

Its not a myth, it just may not be the same for everyone or even the majority.

A cash buyer reduces the risk for the vendor as it means no risk of a mortgage being declined and no risk of a down valuation from the lender.

In theory it could also be quicker if the buyer wants to move fast and is happy not to bother with searches etc. 

nicknameless

caprikid1 said:

"Cash buyers are better than those requiring a mortgage. " This a myth.

Not how it's perceived by sellers atm.  Just had a call about another declined offer as the seller went with a cash buyer who had offered less and despite assurances and proof of funds to make up difference if there were a mortgage valuation lower than offer.  We are finding it impossible to compete with cash buyers atm.

C1996

jcuurthht said:

I'm selling a vacated probate property. I don't have probate yet so I'm in no rush. I have best and final offers expiring today, at which point EA will not accept any further offers.

So far I have 3 at asking price, 1 at +1% and one at -1%. A mix of investors and normal buyers.

I don't really have a game plan yet. I'll probably go with a cash buyer who has offered asking (may increase offer today) as it'll be quicker.

I’m a FTB & a house I viewed went to BFO. The deadline was yesterday at 2pm. I received the dreaded call from the EA, I was one of 7 who made an offer. The EA said that the vendor didn’t go with the highest offer but when with someone who’s offer was ‘significantly’ higher than mine. I think they also made reference to the vendor not being interested in FTB’s. 

My assumption is that they may have went with a cash buyer for a quicker transaction. When I first started looking to buy pre covid I was always told by Mortgage Advisors that being a FTB with no chain is a really good position to be in. However as time goes on I feel like we’re being out bid by investors or cash buyers 😪

nicknameless

C1996 said:

jcuurthht said:

I'm selling a vacated probate property. I don't have probate yet so I'm in no rush. I have best and final offers expiring today, at which point EA will not accept any further offers.

So far I have 3 at asking price, 1 at +1% and one at -1%. A mix of investors and normal buyers.

I don't really have a game plan yet. I'll probably go with a cash buyer who has offered asking (may increase offer today) as it'll be quicker.

I’m a FTB & a house I viewed went to BFO. The deadline was yesterday at 2pm. I received the dreaded call from the EA, I was one of 7 who made an offer. The EA said that the vendor didn’t go with the highest offer but when with someone who’s offer was ‘significantly’ higher than mine. I think they also made reference to the vendor not being interested in FTB’s. 

My assumption is that they may have went with a cash buyer for a quicker transaction. When I first started looking to buy pre covid I was always told by Mortgage Advisors that being a FTB with no chain is a really good position to be in. However as time goes on I feel like we’re being out bid by investors or cash buyers 😪

It's awful isn't it atm?  What area of the country are you looking in?

We're chain free but not FTB, approx. £120k in cash but need a mortgage for the remainder and can't even get an offer accepted way over asking.