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Original poster

Best and final offers

22 replies

marsplastic · 19/11/2021 15:26

We've found a house that we like. We are cash buyers as we have already sold our previous house and are renting. We put in an offer of just under the asking price and made it clear that we are cash buyers and won't be pressurising the vendors on dates as we can move whenever.

EA has got back to me saying that there are four offers in total, including one other cash buyer, and will we submit best and final offers by Monday.

I feel a bit miffed as the vendor seems to be simply trying to squeeze more money out of people. But is this approach fair enough/usual nowadays?

OP posts:

mindutopia · 19/11/2021 15:50

I think this is the only approach at the moment. We’ve been trying to buy for nearly 2 years (finally had offer accepted last month) and all but the very first offer went to best and final (usually in less than week). I think it gets things done and is perfectly fair, though I don’t think it necessarily gets the best offer. There were definitely times we would have made a higher offer if we’d known we weren’t the highest and had another shot. But I think it just keeps people from faffing about and means people have to be serious.

That said, we have only made offers significantly over guide price, like a good 10-12% over, and still not been successful until very recently. I think it’s unlikely those other 4 offers are under guide price, so if you want it, you’d be wise to offer more.

Sprig1 · 19/11/2021 15:57

The vendor wants as much as money for the property as they can get, from good buyer. That's fair enough, you would probably be the same in their position. Just offer what you would be happy to pay for it.

hannahcolobus · 19/11/2021 16:40

This reply has been withdrawn

This has been withdrawn by MNHQ at the poster's request.

Glasspen · 19/11/2021 16:48

Every property we bid on went to best and finals and we were cash buyers - no mortgage but we were never alone in that, we finally got an offer accepted after offering over 10% - they said we weren't the highest (that could be bullshit to allay buyers regret - who knows, the estate agent said he thought we'd be most likely to get over the completion line.

Constance1 · 19/11/2021 22:52

I feel a bit miffed as the vendor seems to be simply trying to squeeze more money out of people

This is a strange attitude of yours OP, of course the vendors want the best price - didn't you when you sold? There are more buyers than houses at the moment, so pretty normal.

WeRTheOnesWeHaveBeenWaitingFor · 19/11/2021 22:56

If you don’t do best and final you end up in a dragged out bidding war. It’s crappy but necessary in really popular areas.

Original poster

marsplastic · 20/11/2021 00:16

I’m obviously out of date. Grateful for the insights. We’ll have a think.

OP posts:

Kite22 · 20/11/2021 00:56

Unfortunately it does seem to have become a more common practice, and yes, it does sometimes panic people into offering more than they need have.
Friends recently marketed their house at £250K, had an open day, I think they said 16 viewers, but actually only had one offer, which was for £275K.
Now, friends are obviously delighted, and full credit to the EAs, who created such an atmosphere that it panicked someone into offering £25K over what my friends would have accepted, but I do feel sorry for people trying to buy in this market who are being (is 'tricked' to strong a word?) into paying over the odds by the EA whipping things into a frenzy. Yes, I know they didn't have to, but I also know that when you are looking for a house, and often paying rent every month, you get to a stage where you really want a house and it seems sensible to put in a hugely over expected amount. Still, that's market forces for you.

BluebellsGreenbells · 20/11/2021 01:09

Of course they want as much money as they can, wouldn't you?

Except they then have to pay over the odds themselves. The only winners here are the banks.

Dougieowner · 20/11/2021 01:20

We accepted a best and final offer today.
Ten offers over the asking price. Top was £30K over but they were in a chain so were discounted immediately. Next two were £25 & £26 over and both were sold, in rented accomodation and ready to go (as were the rest).
Went with the £25K over. They weren't the highest but they offered that price at the outset and sent us (via the EA) a lovely letter saying why they wanted the house so much. Did it for me so we accepted their offer. EA says they are over the moon.

garlictwist · 20/11/2021 04:51

We bought our house on best and final. We only offered what we were prepared to pay (asking price) and didn't go over as I didn't feel the house was worth it.

We got the house despite not being the highest bidders because we were first time buyers and chain free. So the vendors don't just look at the price you're willing to pay but also your circumstances.

MrsBobDylan · 20/11/2021 08:18

@Dougieowner

We accepted a best and final offer today. Ten offers over the asking price. Top was £30K over but they were in a chain so were discounted immediately. Next two were £25 & £26 over and both were sold, in rented accomodation and ready to go (as were the rest). Went with the £25K over. They weren't the highest but they offered that price at the outset and sent us (via the EA) a lovely letter saying why they wanted the house so much. Did it for me so we accepted their offer. EA says they are over the moon.

16 offers and one £30k over is astonishing, a real sign of the times.l!

hannahcolobus · 20/11/2021 10:00

This reply has been withdrawn

This has been withdrawn by MNHQ at the poster's request.

BluebellsGreenbells · 20/11/2021 10:06

Precisely why they need to make sure they get as much as they can for the house then

What if we didn’t? The only reason we need to make more money on a house is the pay the bank back, millions of people either own their own home or have 50/60/70% equity

The only way to keep the banks in profit is for new home owners to take out huge mortgages which inflates house prices -
Ever noticed adverts are only for the new home owners? Banks aren’t making money on a property the owner mortgaged 30 years ago and paid £5000 for!

They have everyone on a treadmill.

Glasspen · 20/11/2021 10:40

Ever noticed adverts are only for the new homeowners? Banks aren’t making money on a property the owner mortgaged 30 years ago They most definitely are making money out of people with long-term mortgages who don't switch every two years. It's the first time buyers they are hoping to rope in with deals and hope they won't move!

lastqueenofscotland · 20/11/2021 11:31

I recently bought. I was cash, I had to go 15% over asking and my offer was accepted but I wasn’t even the highest! It’s a mad market out there

mayblossominapril · 20/11/2021 13:40

I have just bought a house it didn’t go to best and final it was just offers in excess. I offered slightly over and it was accepted but im a cash in the bank buyer.
A few weeks ago I backed out of a purchase that I won on best and final because i thought I wasn’t paying too much.

Constance1 · 20/11/2021 15:31

@BluebellsGreenbells

Precisely why they need to make sure they get as much as they can for the house then

What if we didn’t? The only reason we need to make more money on a house is the pay the bank back, millions of people either own their own home or have 50/60/70% equity

They have everyone on a treadmill.

Yes but are you really going to be the one to do the 'right thing' and take a financial hit yourself to get off the treadmill? You are a far nobler person than most people if you do!

Roselilly36 · 20/11/2021 16:21

Totally normal at the moment, we were hoping to buy a property, we are also cash buyers, vendor has not accepted our offer, despite us upping it, the property has more viewers today. His prerogative, of course, but it does make you feel shit I know. Keeping everything crossed for you OP

maofteens · 20/11/2021 18:33

It's not just normal now. I sold my house in SW London nine years ago to best and final (sold £40k over ask, not the highest bid but most proceedable). I do think the agent put it on for too little as it sold at exactly what I thought it was worth. But regardless it wasn't unusual at the time to go to best and finals when there were multiple offers.
And I discounted any heart felt letters and went with most proceedable high offer. It's a business transaction.

DingleyDel · 20/11/2021 18:39

Normal in our town (SW and wouldn’t think of it as particular desirable but it’s near to some very very desirable areas). We bought last year and went a lot over asking price for our final offer, this year house next door was on and it went to final offers too after about 3 days.

Independant · 21/11/2021 08:48

We’ve recently had our offer accepted on our forever home that went to best and final. They had 13 offers as the house was on a street that is quite desirable and not many houses come up for sale very often.

We put in the absolute max that we could afford to pay, and accepted the fact that we may not get it with 13 other potential buyers.

The market is so mental at the moment, most house sales are going to best and final because of the demand I think. We sold our house for 10k over asking on the first weekend we went on the market.

Good luck OP, remember that the house is only worth what you’re willing to pay / spend on it.

If it doesn’t work out, there will definitely be another house sat waiting for you x

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