When selling your home, the best news you can get from your agent is that an offer has been made on your property. Sometimes, listings will exceed the level of demand that was expected and gain multiple offers or a bidding war could begin. In most instances, the vendor will accept the highest offer. But this isn’t always the best option, there are several factors you must consider.
Find Out Where Your Buyers Stand
One of the most crucial factors that is quite often overlooked when considering offers is the position of the buyer. Are they ready to start proceeding immediately? There’s no point in accepting a higher offer if they don’t have the funds available, especially when you consider the costs of owning the home for a longer period of time, is the higher price really worth it?
Cash Buyers
Cash buyers are normally the preferred choice of buyer to a vendor looking to sell their home. An estate agent must check proof of funds and verify where the monies have come from (anti-money laundering regulations). When dealing with offers, buyers will often say that they’re a cash buyer, but that “I just have to sell my house first to get cash”. The reality of it is, is that these buyers aren’t much different from mortgage-funded buyers as they’re still involved in a chain that could cause issues at any point in the sale. The best option is always to go with someone who has clear funds, available to send immediately. The only downside that you could potentially come across with a cash buyer is that their offers are likely to be lower, due to them being in a stronger position to proceed with a purchase.
Mortgage Buyers
Most of the buyers on the open market will require a mortgage to purchase. Good estate agents shouldn’t accept an Agreement In Principle (AIP) by their broker, but should actually dig deeper to get to know the buyer’s financial situation and verify that with the mortgage broker. The AIP could still fall through if the purchaser is unable to provide all the paperwork necessary, this is because the AIP isn’t actually a mortgage offer. The lender may also down value the property and refuse to lend the amount the buyer required for the agreed sale. Whilst the majority of mortgage buyers have no issues, things go wrong for people all the time when dealing with property.
Dealing With A Chain
Chains are often the biggest threat to a sale. Unfortunately, your estate agent and solicitors don’t have any control over issues in the chain. This is because there are a number of related sales that are being dealt with by other parties entirely. Although chains can cause massive issues during a sale, they’re still relatively common. Similarly for a seller – if you need time to find a new house, or are waiting for the vendor above you to move out of their home before you can complete, then you’re in a chain too! (And your buyer could pull out after the frustration of waiting around for you to secure your next home)
Who’s The Best Buyer Then?
The best buyer, in an ideal world, would be a cash buyer with funds available and isn’t relying on selling their home to obtain the cash funds. The longer the process takes, the more chance you have of something going wrong. The reality of it is, is that these buyers make up a very small percentage of buyers on the open market. So, ultimately, it’s important to have a good estate agent that can work closely with you to ensure you have a smooth selling process from day 1 until completion.
Get A Cash Offer From North East House Buyers
Here at North East House Buyers, we take all of the stress, hassle, and uncertainty out of selling your home by giving you a fast cash offer for your home. We buy houses in any condition, cover all of your fees, and can work on your timescale, regardless of how fast or slow you may need to sell. Fill out the form below to get started…