How to choose a buyer for your house? It’s simple – pick whoever has the highest offer, right? While it’s understandable you want to get as much as possible for your home, choosing a buyer based solely on price isn’t always the best option.
There are many factors that you need to take into account, which is why having an excellent estate agent advising you is so important. Here, we provide some handy tips on choosing the right buyer for your house and the role of an estate agent in the process.
Why the highest offer isn’t always the best
There are many reasons why people decide its time to sell their house and while the aim is to get the best possible price, there are many other important factors not to be overlooked.
- Do they have finances in place? Do they proof of mortgage in principle (MIP)
- How organised is the buyer? Have they engaged a solicitor?
- Are they chain free for example a first-time buyer?
- How quickly can they proceed? If they are also selling a house, are they under offer?
All of the above are important considerations. There’s no denying that the offer amount matters, but it shouldn’t be the only factor driving your decision to accept an offer.
How to find the right buyer for your house?
Accepting an offer on a house
While the offer amount shouldn’t be the only factor when choosing a buyer, it is still important. The aim should be to achieve the maximum amount as long as all the other components fall into place, and you accept an offer from a serious buyer ready to progress the sale.
Are they chain-free, or do they have a property to sell?
How quickly you want to sell your home also depends on the type of offer you accept. If they are a chain free homebuyer (e.g. they don’t have a home to sell), they will likely be more appealing than someone who needs to sell their house first.
Chain-free buyers don’t have a property to sell, meaning they could be first-time buyers or may be buying your house as a second home. Buyers purchasing with a chain need to rely on the sale of their property. If one sale falls through in a property chain, a domino effect could result in the other sales in the property chain collapsing.
Mortgage applications can take up to three months and are one of the primary reasons house sales take time. Plus, there’s always the possibility of something going wrong with the application and the buyer failing to get a mortgage.
With cash buyers, you don’t have to worry about waiting for the application to go through or being rejected. An offer from a cash buyer has several advantages, including a faster sale. So, if speed is important to you, it might be worth accepting a slightly lower offer from a cash buyer.
Do they have a mortgage in principle (MIP)?
Anyone buying a house with a mortgage should provide a mortgage in principle (MIP). A MIP confirms that a lender is willing to lend the buyer up to a certain amount. It’s a form of validation that lets you know you’re dealing with someone who can afford to buy your property.
You could ask questions to buyers during viewings regarding their buying position, but the estate agent should verify a buyers position in advance of receiving offers.
The role of an estate agent
While an estate agent can’t determine everything about a buyer, they can help you to identify the good ones. Buyer verification is important, and the best estate agents provide you with a full and clear picture of the prospective buyer and their circumstances.
Agents should obtain information from the buyer before an offer is submitted and tell you if they’re purchasing with cash or a mortgage. They will also let you know if a buyer is in a chain and how eager they are to do a deal and proceed with the purchase.
Armed with this information, you can decide on the best offer to accept or negotiate. And if you have any reservations, you can relay these to your estate agent, who will be able to mediate on your behalf between you and the buyer. Once an offer has been accepted, they’ll get to work ensuring everything runs smoothly for both parties.
Choosing the right buyer
There are many factors to consider when choosing which offer to accept. Getting the best price might be your primary objective, but you may decide to accept a slightly lower offer if the conditions are right (eg, chain free or a cash buyer).
By working with the right estate agent, you can feel more confident about accepting the right offer, thanks to the advice and guidance of you agent. After all that’s what you’re paying them for. Hopefully, you feel confident now on how to choose a buyer for your house.
Last Updated: November 22nd, 2023