Choosing the Right Buyer - Why Highest Price Doesn’t Always Mean Best Offer
When selling a property, the primary objective is usually to secure the highest possible selling price. However, is the decision solely based on financial gain? What if you receive multiple offers—should you automatically accept the highest one?
No one wants to agree to sell their home and be left feeling like they sold it too cheap or could have got more money. But is it always just about money? It's crucial to consider non-financial factors as well.
If you were lucky enough to receive multiple offers, do you simply accept the highest one without considering these other factors?
Selling a home is such an involved process, and each sale has unique challenges to overcome. There are at least two separate parties, the buyer and the seller, which can increase many times over if many property sales are linked together in a chain. Attempting to keep every party happy, working together at the same pace, resolving all issues in a timely manner, and finally agreeing to a completion date that suits everyone. That is a lot of people, properties and legal transactions to co-ordinate.
Even a relatively positive part of the process - agreeing on a date for completion - can be tricky. What if someone in the chain can't get time off work or has a holiday booked. What if there is a struggle to book removals, or there is not enough time for the deposit funds for someone to be released from their savings account.
Moving day is usually a happy occasion, and many of us breathe a huge sigh of relief when that call tells us we can collect the keys to our new home. But it is not without its stresses and strains, and those stresses will multiply when there are more people involved.
Add to this the question of financing for the buyer. Are they relying on money to be cashed in from stocks and shares to pay the deposit? Will they need to give notice on this? Perhaps they are using funds from the military that will need to be rubber-stamped by a supervisor before you can complete. The buyer may have an unusual job and be paid in a foreign currency or at irregular intervals - something that raises many questions with mortgage lenders and can be tricky to clarify.
So, would it be better to accept an offer from a buyer in a less complicated situation, even if it is at a lower price? In short, yes. The relief of a shorter legal process when fewer properties are connected in a chain can be significant. With fewer people to co-ordinate and fewer properties to transact, the sale process will likely be faster and possibly much smoother, reducing your stress and uncertainty. The difference between your offers might just be the cost you pay for your sanity!
As the seller, it is up to you to weigh the potential ease of the sale and compare it to the price. Straight-up cash, without any loans, is not always the easiest option. It depends largely on how and where that cash is held and how easily the buyer can access it.
Selling a home is an intricate process, and each transaction presents unique challenges. Involving at least two parties—the buyer and the seller—the complexity can multiply, especially when multiple property sales are intertwined in a chain. Balancing the satisfaction of all parties, ensuring everyone works cohesively, resolving issues promptly, and agreeing on a mutually convenient completion date involves managing numerous moving parts and co-ordinating various individuals.
Considering this, would it be wiser to accept an offer from a buyer in a less convoluted situation, even if it's at a lower price? In short, yes. The potential relief of a shorter and smoother legal process in complex, multi-property chains is significant. With fewer parties and properties involved, the sales process is likely to be swifter and potentially smoother, giving you a sense of ease and control.
As you can see, each buyer will come with unique circumstances. The key is trying to determine which buyer will give you the best chance of completing your sale in the timescale that suits you, which is not necessarily the highest offer.
If you are thinking of selling your home, get in touch with our team of property experts, who will not only attract buyers and offers for you but will be able to advise and guide you through the whole process so that you are not left trying to work this all out on your own.