Best and Final Offers

[OwlInAnOakTree]

There's a garden I love, and the house will be great too. It's going to best and final offers on Monday. I know there are several offers on the table, all around asking price, mainly cash buyers and FTBs. It's a sideways move for us, we're really just moving for a bigger garden, the house I want is valued at less than mine as it needs work and is about 25% smaller. I'm not yet proceedable. I've instructed an agent and had a few investor types round but it's not on the open market yet. So I can offer more (and, for the garden, I'm happy to do that). I'll also be a cash buyer when my house sells, so no potential issues with mortgage valuations. That's the background.

The question is, can my best and final offer be '5% above any other best offer' rather than an actual figure? I don't know whether the seller needs money fast and so would opt for a quicker sale with a cash buyer. But I obviously need to make myself appealing against the cash buyers, I think over-offering is the only way to do this.

She's already moved into her next home though (family home, her mum has passed away) so no chain issues on her end. Houses are selling fast around here so I don't think mine will take long to sell. The one I'm interested in has only been on the market for 6 days.

Thanks for any thoughts.

Not sure about that. However you could offer 20% above and I wouldn't accept it.
When my house went to best and final the three offers were (asking price £945k):
£930K buyer under offer
£975K buyer under offer through same estate agent
£1m buyer not under offer.
I took the middle one - the £1m offer was to do exactly what you are trying - dazzle me with a high number. Didn't matter - if not proceedable it doesn't count.

Well if you're not proceedable, then not sure you why anyone would take you even remotely seriously.

As a seller, I wouldn't even be allowing someone non proceedable to make an offer.

Yeah you’re not currently proceedable and I probably wouldn’t pick you out of the bag on price alone. Also I’m very confused that you say you will be a cash buyer when your house sells. That’s not a cash buyer, a cash buyer is someone with money in the bank immediately able to buy without selling any other property.

EAs also call you a cash buyer if you have all the money I.e no mortgage / lender involved.

I would outline your strengths as a buyer, that you will not need a mortgage, will have full funds, the reason you think you house will sell fast, and offer the price the house is worth to you.

But in reality as you are not proceedable, they will accept an offer from someone who is.

And your house might me more saleable than a hot cake, but as it is not currently under offer the vendor has no way of guageing the stability of your end of the chain.

It’s so frustrating when you see The One, but I would keep your hopes realistic here.

@cakefanatic

Yeah you’re not currently proceedable and I probably wouldn’t pick you out of the bag on price alone. Also I’m very confused that you say you will be a cash buyer when your house sells. That’s not a cash buyer, a cash buyer is someone with money in the bank immediately able to buy without selling any other property.

Yeah, I just meant that there would be no potential issues further down the line. Me proceeding wouldn't be affected by a mortgage company valuing it under my offer, for example.

My higher offer would be less to dazzle rather just to acknowledge the fact that I'm not the quickest option. But completely understand what you're saying Changingwiththetimes. The 5% in this situation will be more like £7k, not £125K, so not remotely dazzling anyway.

So seems like a long shot. Still, nothing ventured nothing gained, right? Thanks for your thoughts.

Thanks so much for that UpTheJunktion. I'll do all those things you suggest. (Except maybe keeping my hopes realistic. ) The garden is just huge and I have a child with suspected ADHD, and a border collie who might as well have ADHD, and they would both benefit from the garden so much. I couldn't just let it pass me by without trying.

That would be a very unfair way to conduct best and final offers - just give a figure like everyone else!

If you want to make yourself an attractive option then you'll need to put your house on the market asap - preferably with the EA that the house you want so that they can market you to the sellers as a preferred buyer. Good luck with whatever you decide to do :)

If you want to make yourself an attractive option then you'll need to put your house on the market asap - preferably with the EA that the house you want so that they can market you to the sellers as a preferred buyer. Good luck with whatever you decide to do

That's exactly what I've done Hazel. I'm doing anything and everything that could help my cause. And the agents have been great. He rang around investors that might be interested in mine and I've had one look already, another one due this weekend. The hope was that if I could get an offer before best and final offers deadline, I would be in a much better position. But it hasn't happened yet. It's going on the open market asap. So yes, the vendor's agent knows my situation very well because he's my agent too. And I've bent his ear often over this this week. Poor man. He also knows I'll pay way over asking if it will convince the seller to pick me. I have made no attempt at all to play my cards close to my chest with this one!

I've got a second viewing this afternoon. I'm taking my son. He's gorgeous with big brown eyes. Maybe he'll charm the seller...

(I know, I know, you're all rolling your eyes, but I've got to try right?)

@OwlInAnOakTree what happens if the best offer is an astronomical figure and you can't afford 5% over that?

Fair point onethingonly!

I don't think that will happen. My house is valued at 20% more than that one, and, to be honest, I'd willingly put everything I get from this house into that one. The agent did say there's often one wildcard type in the mix who offers way above whilst most other people are fairly sensible. But we've already established that in the case of this house, the wildcard is me...

It's impossible as the agents can't tell you what the others are offering therefore your "5% over best" can never become a monetary figure, as the original figure on which is would be based will never be disclosed to you during best and final.

It's the equivalent of attempting an excel formula against an empty cell. 1.05 x zero is zero.

I think you do have a chance if you outline that you are having viewings already from investors and about to go on the market, that ther is a lot of interest in your house.
But 7K is not enough to sway the seller imo, in this situation you need to offer closer to 10k I'd say , to have a real chance.

Ah crossed-posted there! Yes yo uaer doing everything right and I do think you haev a good chance - the agent sounds great, wish mine was like that.

Do you have enough income to take out a mortgage against your existing house that would cover the full cost of the new one?

That way you would have cash in hand and be a cash buyer on the new house.

You'd potentially have to be willing to own two houses for a while, if your existing house completes after purchase of the new one.

If you did not want to start paying all the interest straight away, your mortgage could be an offset mortgage, and you could draw it down only when you needed the funds.

The downside is that if you don't get the new house, you will have paid arrangement fees, etc. for nothing. But the upside is you might have a better shot at getting the house you want, or even if this one falls through, you'd have put yourself in a stronger position for the next one that comes up for sale.

Do you have a deposit and could raise enough mortgage to outright buy the new property without selling your own?

Thanks for the ideas YankeeDad and Arelia. I'm currently a student, so whilst I have a decent income between student finance, bursaries, etc. no-one will give me a mortgage because it's not 'earned' income. I've tried.

Thanks CatAndHisKit for the positivity boost! You're probably right re the £10k. Yes, very lucky with this agent, he's fab. I've been for a second viewing this afternoon and told the vendor exactly where I stand and what I'm willing to do. I think I've done all I can do at this point. So will wait now and speak to the agent on Monday. Everything crossed.

You're not strictly a cash buyer, you're cash on completion. All depends on their reasons for selling if it's a quick sale then you're not the most attractive buyer. If it's £££ then maybe you are
Word of warning this did help us to get the house we wanted but the vendors were arseholes.
It went to best and final and they came back to us via the agent after all the offers were in and said someone had offered £17 k more and would we increase our offer. 🤬
So best and final is bollocks unfortunately
It's brutal out there and people are greedy bastards. May karma bite their greedy arses.
Hope your second viewing goes well

@HumourReplacementTherapy

You're not strictly a cash buyer, you're cash on completion. All depends on their reasons for selling if it's a quick sale then you're not the most attractive buyer. If it's £££ then maybe you are Word of warning this did help us to get the house we wanted but the vendors were arseholes. It went to best and final and they came back to us via the agent after all the offers were in and said someone had offered £17 k more and would we increase our offer. 🤬 So best and final is bollocks unfortunately It's brutal out there and people are greedy bastards. May karma bite their greedy arses. Hope your second viewing goes well

Thank you, right, cash on completion, that's a good phrase for me to know!

Yeah, I've found that out today whilst reading about the best and final offers process...it's not remotely binding, is it? I assumed it would at least be honoured, even if not legally binding. But it seems not.

We are about to sell our late mum's house, so similar position to your vendor, no upward chain. Therefore we are not in a hurry, and can just go for the highest offer. If you're lucky it'll be the same with this vendor. Fingers crossed for you.

ah that's the best thing you could haev done - spoke to the vendor in person. If thy aeer not in a huge rush, I think they ar likel to go for you, esp as you had two viewings (rare thing in this market!) and they know you aer very, very keen. They have no such assurances ferom other bidders - indeed any of those could pull out at later stage but you wat this particular house.

No, ‘best and final’ is not as I understand the Scottish ‘sealed bids’ to be.

It is just a way to get all the offers lined up together rather than negotiate with 3 or 4 buyers over a week or so. But yes, they may well come back and try and tweak the favoured bid.

It is a system that tends to push up offers, but it also sets a timeframe, which was useful when we were all rushing towards the stamp duty deadline.

Thanks for your thoughts LimeJellyforBrains. I'm hoping this vendor thinks the same as you.

Yes, that's my thinking too CatAndHisKit. The cash buyers may be able to proceed straight away but are also more likely to drop out if anything shows up in survery or they find a better investment elsewhere. She knows I really want the house and it would pertty much have to be condemned by the surveyor for me to drop out of the sale. It needs work and I'm not put off by that, my current house needed a lot more! But others families/FTB might decide it's too much for them when the survey is back and they've had a builder in to quote. I am absolutely definitely definitely the safest bet for her! I hope she feels the same way!

Thanks UpTheJunktion. I can see how it's more desirable for the agent to do best and final rather than be going backwards and forwards between several potential buyers all increasing the offer by £1000 here or £750 there for days on end.