Proceedable buyers only - should you be using this strategy when selling your home?
If you've been looking online for a new property, you might have come across the term 'proceedable buyers only', but what exactly does this mean and how can it impact your property search?
Being a proceedable buyer is a position of power. It means you can make an offer on a property and immediately kickstart the legal process to purchase it. Many agents have encountered applicants who claim to be cash buyers, only to find out that the cash is tied up in the sale of another property. This can lead to confusion about how to become a proceedable buyer. But once you understand the process, you'll be in a strong position to make a successful purchase.
It might be easier to look at what is not a proceedable position.
You would not be proceedable if:
- You have a property to sell - if you need to find a buyer for your current property, then you are not yet in a position to proceed.
- Even if you don't need a mortgage - a proceedable buyer is not the same as a cash buyer. If you own your home outright, without any mortgage, you are still not a proceedable buyer until you have a proceedable offer on your own property. This means you might miss out on a property you love if you're not in a proceedable position.
- What if you've found a buyer for your property? You will still not be considered a proceedable buyer until you have a complete chain. This means that your buyer has found a buyer, and they've found a buyer, and so on, until the chain reaches someone who doesn't have a property to sell to buy. This is often a first-time buyer or investment buyer that can round off the chain, and when this happens, all parties linked become proceedable.
Being a proceedable buyer means that your funds are immediately available. But what if you need a mortgage? A proceedable buyer is not necessarily a cash buyer. To be ready to proceed when you need a mortgage, you need to have evidence of your deposit funds and an agreement in principle, also known as a mortgage promise, from a mortgage lender. Armed with these documents, you are ready to make your offers.
It may be clear why some sellers are restricting viewings to only buyers who are in a position to proceed with a purchase. Rather than wasting time marketing their property to buyers who may not be ready to go, if a seller is in a hurry to sell, they might market to proceedable buyers only. Only having viewings from buyers who are ready to proceed will prevent any viewings or offers from buyers who are not yet ready to buy. This way, they will not spend time showing their home to buyers who can't buy.
So, perhaps the real question is, when you put your own property on the market for sale, should you follow this strategy, too?
Well, think for a moment about how you, as a potential buyer, feel being told that you can't view a property. It begins the process from a negative perspective, restricting rather than embracing all buyers. And who knows how quickly your home might sell? You could have a viewing this afternoon and receive an offer first thing in the morning. If you are suddenly in a position to proceed, would you still want to view that property, or would you spread your search and consider somewhere else?
Of course, if you need a quick sale or viewings are tricky for you to accommodate, then it might be the right path for you. However, for most sellers, it could actually be turning buyers off rather than attracting the right ones.
So, what's the alternative to limiting viewings to proceedable buyers? The key to receiving offers on your property is to cast a wide net. By marketing your property to as many potential buyers as possible, you increase the chances of attracting the right ones. A wider coverage, or at least coverage towards the right audience of buyers, will encourage more viewings and, in turn, lead to a higher chance of receiving offers. By adopting the principle of "the more the merrier" when marketing your home, you can be sure to keep interest levels high and improve your chance of receiving offers.
If you are struggling to accommodate appointments, consider hiring an agent who can accompany potential buyers during viewing appointments for you or hold an open day to allow multiple viewing appointments to take place simultaneously. An experienced agent can also help you understand the proceedable buyer concept and guide you through the process.
To learn more about how we market properties for sale to ensure maximum coverage to the perfect audience of buyers, get in touch with our team today.