Let’s say you have a few people interested in buying your property. This is both an exciting scenario and one that throws up a few questions.
Which type of house buyer is the most appealing to you? Is it simply the person who makes the highest offer? Or do you have other priorities?
While your estate agent will give you expert advice, it’s important to understand the various factors at play so that you can carefully respond to any interest and weigh up all offers on the table.
Think over the buyer types
When looking for a suitable buyer, there’s no golden ticket – only what’s right for you and your situation. Keep in mind, someone can be more than one type; for example, a cash buyer and a downsizer.
- First-time buyers
These buyers are chain-free and often eager to buy a house swiftly. On the downside, their budgets can be limited, and their lack of experience with the buying process can lead to problems, such as last-minute requests or delays in organising their finances.
- Cash buyers
A cash buyer doesn’t depend on other people in a chain or a lender’s decision. They, therefore, offer you the tantalising prospect of a quick and easy sale. But, knowing they hold this trump card, they may offer you less than non-cash buyers.
- Investors
Maybe they’re hoping to rent out your property or add a loft extension before reselling at a higher price. Whatever their investment plan, these buyers are likely to be savvy about the market. While they may move quickly and buy your home in its current state – no paint jobs or DIY required – they’re likely to offer you a relatively low sum.
- Moving uppers
More often than not, they’re growing families seeking more space. They have specific criteria – such as living within a school catchment area – and may, therefore, be decisive about what they want in a home.
- Change of lifers
These people have had a change in personal circumstances, such as a divorce or bereavement. They’re after a fresh start in a home that better suits their needs.
- Downsizers
Often mature, downsizers are looking for smaller homes that require less upkeep and cleaning. They may well be cash buyers.
Decide on your priorities
Nobody knows better than you what works for you and your family. Think about how you’ll cope with different scenarios. For instance, forgoing a cash buyer in favour of a higher bidder who’s part of a chain may lead to a longer, more stressful process as you wait for other people to organise their own sales and financial arrangements. Alternatively, prioritising a cash buyer – and accepting a lower offer – will give you less purchasing power for your next property.
If you’re selling with your partner, sit down and agree on your top priority. Doing so will make your decision-making process that much smoother.
Consider asking for best and final offers
If you’re confident you have enough serious interest in your property, you could ask all potential buyers for their best and final offers (BAFO). This can work well if you, for example, hold an open house on a Saturday and then ask everyone to email your estate agent with their offers by a specific day the following week.
The major plus is that you get a fast process with a fixed end date. However, by creating such a tight deadline, you risk missing out on other buyers who might come along the following week. You also give yourself less time to weigh up the different offers. For help in this area, here’s a post on how to tell if a buyer is serious.Work closely with your estate agent
An experienced estate agent who knows the local property market can help guide your decisions when finding the right buyer for your property. Make sure to tell them your priorities and any concerns so they can manage the process in a way that suits you. Keen to get started? Find your local Winkworth office today.
