Buying a home: why the strongest offer isn’t always the highest
When you find a property you want to buy, it is easy to assume that one thing matters above everything else: the price you offer.
Price is important. But sellers are usually considering something else too: how likely is this buyer to actually complete the purchase?
That means the strongest offer is not necessarily the highest one.
Sellers are choosing a buyer as well as a price
Imagine a seller receives two offers.
One is slightly higher, but the buyer still needs to sell their own property, has not yet agreed that sale and is unclear about their mortgage position.
The other is a little lower, but the buyer has an Agreement in Principle, can evidence their deposit, has a solicitor ready and is either chain-free or already well progressed with their own sale.
The higher figure may look better initially. But when the seller considers the likelihood of reaching exchange and completion, the second offer may be considerably more attractive.
This is why being prepared before you offer can matter.
What makes a buyer look ready to proceed?
You do not need to have every detail resolved before viewing properties, but if you are serious about buying, it helps to get the important pieces in place.
If you need a mortgage, speak to a lender or mortgage adviser and obtain an Agreement in Principle where possible.
Understand where your deposit is coming from and be prepared to provide evidence of funds.
If you have a property to sell, be clear about its position. Have you instructed an agent? Is it on the market? Are you already under offer?
It is also sensible to identify a solicitor or conveyancer before you find a property. You do not necessarily need to instruct them immediately, but knowing who you intend to use can save time once an offer is accepted.
None of these things guarantees that your purchase will proceed smoothly. They simply remove some avoidable uncertainty.
Why does an estate agent ask so many questions?
When you make an offer through Brown & Brooke, we will normally ask about your mortgage position, deposit or proof of funds, whether you have a property to sell, your chain, solicitor and preferred timescale.
That is not about putting unnecessary obstacles in the way.
Our responsibility is to present your offer properly so the seller can make an informed decision. An offer of £X without any information about the buyer behind it only tells part of the story.
It also benefits serious buyers. If you have done the preparation, that should form part of the conversation rather than your offer being reduced to a number.
Accepted doesn’t mean completed
There is another reason we take buyer preparation seriously.
Once an offer has been accepted, the transaction still has a long way to go.
Solicitors need to complete the legal work. Mortgage applications need to progress. Searches and surveys need to happen. Enquiries need answering. If there is a chain, several transactions may need to move together.
Until contracts are exchanged, there is still uncertainty.
At Brown & Brooke, we therefore look beyond simply getting a property under offer. We want to understand whether the buyer appears prepared and then help keep communication moving once the sale has been agreed.
That matters to the seller, but it matters to the buyer too. Nobody wants to spend months planning a move only for avoidable delays or poor communication to undermine it.
If you are thinking about buying
Get prepared before the right property appears.
Understand your budget and mortgage position. Get your deposit information together. Be clear about your chain. Think about your solicitor. And when you find somewhere you want to buy, give the agent a clear picture of your circumstances.
You may not always be the highest bidder.
But you can make sure the seller understands why you are a serious one.
Looking for a property in Southeast London?
Register your requirements with Brown & Brooke and tell us what you are looking for, your budget and your buying position. We can keep you informed when suitable properties become available.