Multiple Offers - how to pick best one

[Whywontthisjustend]

We put our house on the market very recently and have had a large number of viewings and offers. We are now going to best and final.

How do I choose the best one and what info can we ask for - can we (or estate agent) ask them to confirm their loan to value of their offer (worried that on some of the higher offers the mortgage valuation may be less than people have offered as its significantly above asking)? Obviously would be better if they are chain free.

What have other people asked for in order to maximise chance of picking the "right" bid. I'm thinking specifically in the current context of lots of job market insecurity at the moment and everything else that's going on. Thanks in advance for any replies!

I think you should be able to get from your estate agents regarding the buyers financial backing, e.g. Are any of them cash buyers, a mixture of cash and mortgage, etc. This is info that the Estate agents should have already from the buyers.

We wouldn't want to sell to investors, unless we absolutely had no choice. So I'd want to know that the buyers were actually wanting to live in it not carve it up for a HMO. You might want to know how long a chain they're in too. It's a nice position to be in but I hope you wouldn't push people to spend more than the house is worth eg in a bidding war. We haven't even had one offer yet so well done on getting this far.

Definitely find out if cash buyers and if in a chain how long etc. Have they sold their house, are they proceedable?

I would aim for the shortest chain possible. Also make sure the prospective buyers have a veryrecent mortgage in principal offer.

I’d also want a short chain. It might also be lower risk to sell to someone local/familiar with the area vs someone relocating.

@MrsJamin we are exactly the same - its a family home and we want to keep it that way. Its the bidding war bit I'm worried about - I don't want to accept an offer from people who have got 'caught in the moment' like being in an auction and then get buyers regret before it can complete! Hope you sell soon too

I’d put anyone chain free at the top of the list, followed by anyone with a LTV of 80% or under. The estate agent should already have this sort of information

I think when you start getting more granular than this you’re just making things difficult for yourself and run the risk of each offer being submitted with a story about why they want your house so much which, unless you’re really the kind of person who would pass up thousands of pounds for a family who seemed nice, isn’t very helpful.

Yes to chain free if possible. Cash buyer even better...but check it’s genuine and has been evidenced by the EA before taking off the market if such a buyer has offered.

Basically anyone who can proceed fast and who has less likely to go wrong along the way is what you want. There are no guarantees, but some buyers are certainly in better position.

Yes too, to lower LTV if needing a mortgage. Especially if yours sells for asking price or above, a lender might down-value it and with lenders being twitchy about the coming recession, people with lots of equity in their own home and who aren’t looking to stretch their borrowing too much are much safer and more likely to get the mortgage offer in principle and then in reality too once the property is valued and surveys done etc.

Beclear with the EA now, that when they put the offers to you, you will want detailed info about if the buyers have property to sell, their rough LTV, if they are local or not and if they are proceedable....got buyers underway, got solicitors named, got MIP etc etc.

So basically try to pre-empt delays by telling the EA what you’ll want to know now, rather than waiting for the offers and then needing to wait another couple of days for the info to be gathered.

Hope you get a great buyer and not a flaky one or one who has lots that could go wrong along the way.

Wouldn't consider an offer from anyone wanting a mortgage of more than 80%

Would want to know how secure their employment is... but don't really think you can ask this

Its all well and good getting offers well over asking if the asking price was low, if you are smashing the ceiling price with no local comparables then a surveyor will not value it at what has been offered, look at recent sales prices for very similar properties and see what you think is justifiable, anything way over that you may aswell ignore unless they have a huge deposit or are cash buyers

Good ideas- hadn't thought about checking whether they had a solicitor in place

I was in same position not a long ago.
12 offers, 5 over asking price by far compare to bank valuation.
luckily the buyer had a large cash deposit, had to bridge the difference.
Ask the agent to check their financial position and LTV.
I will try to keep it on market until they get their mortgage offer if possible.

@mumsy27 raises a good point re: bank valuation. I wouldn't encourage a wild bidding process as many could find themselves unable to progress.

I would also caution about cash buyers - which by the way seems to mean "no house to sell" around here rather than "no mortgage". They can seem very entitled thinking that their lower offer will be accepted over all others. I also suspect some would haggle hard at the survey stage.

Agree with what others have said. Especially:

• shortest chain possible, ideally with nothing to sell;
• if there is a chain then get as much detail on the other properties / buyers and their situations as possible to ascertain their positions. Try and avoid a chain with any sort of question marks on the sale / how proceedable they are. You are only going to go as fast as the slowest link;
• at least 80% deposit;
• ask the EA for the details set out in an email. Then you have a) the ability to compare objectively and b) have a written record of what the EA told you;
• If the EA has a strong recommendation of a buyer over others then take it with a pinch of salt. There’s always the chance that the EA knows them or has another vested interest in them being the successful bidder;
• Prioritise the above over getting the prospective buyers to just out bid each other. You’re right that you don’t want them to get caught up in the moment only to pull out / try to renegotiate later. And as others have said, lenders are cautious with valuations at the moment so anything too inflated will likely not match the lender’s valuation, which would be a pain.

Good luck! You’re in a great position with all those offers