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'Best and final offer'

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  • 'Best and final offer'

    Hi, I am a first time buyer and I made an offer on a property on wednesday. I was there and then told that it didn't match the offer made by another potential buyer, so therefore I was given a chance to increase my offer what was termed, 'final and best offer'. I increased my offer and was told that my offer was higher, and that the property would no longer be advertised.

    I applied for a mortgage the same day, and filled out the forms that arrived the day after and sent them off, and then on friday, I am told by the estate agent that another offer was made by another potential buyer, who looked at the property prior to myself, and that their offer exceeded the amount I made on my 'final and best offer', and was told that I would have to make another 'final and best offer' at a greater amount than my original 'final and best offer'. I have to wait until monday until I will be told if my offer is higher or not.

    Now my issue is, that I think that, if I am asked to give a 'final and best offer', that is what it should be, and under this kind of situation, as far as I am aware, all potential buyers are supposed to give their offers, and then whoever makes the highest one, gets the property, (possibly at the discretion of the seller). If this is the case, technically, there shouldn't have been any more offers after this, regardless of whether they were higher or not. I am not sure if this is accepted practice among estate agents, and whether, as a first time buyer, they are just trying to take advantage of my lack of experience.

    After my first final offer, I was given a 'congratulations' by the estate agent, after telling me I had got the property, and was told that the advertisements for the property would be taken down. I am not sure if this has happened at their office, but it certainly hasn't at Rightmove, but then there could be a delay in removing properties from there.

    Is there anything improper as per any regulation going on here? Or is this the kind of thing one can expect, and you just have to make a greater offer?

    I have looked at the PDF documents on the naea website, but they don't seem to explicitly state anything that would imply I can do anything other than make a greater offer (however the topics are mentioned vaguely).

    Thankyou for any help you can offer with this matter.

  • #2
    Re: 'Best and final offer'

    Hi there, unfortunately this is the way the game is played and even when you've had an offer verbally agreed, you can be subsequently out-bid by someone else and then you end up in a bidding war, where the agent encourages interested buyers to up their offers.

    Neither party is legally bound to buy or sell the property until contracts are exchanged, so anything can happen. We were told by estate agents that there was a 72 hour delay max in getting properties taken off rightmove.

    One thing to keep in mind is that you don't HAVE to make an increased offer - remember it's the agent's job to secure the best possible selling price for their client, but don't let them push you into doing something you're not comfortable with. It depends if you really want the property.

    My advice would be when you make an offer on a house to have a fixed number in your mind as the maximum you will go to. What is the house worth to you? How much work would you have to do to it and what would that cost? What have other similar properties sold for in the area recently? What was the house sold for (check mouse price or zoopla) and when and what is the average drop/increase in house prices since then in the area - compare that with what the vendor is asking and decide on your maximum. What are the vendor's circumstances, are they keen to sell quickly?

    You can find out so much from doing a bit of research. Don't forget that your first-time buyer status counts for a great deal because you can complete quickly. A vendor keen to sell quickly might be tempted to choose your offer, even if it's lower than someone else, because you can move quickly. Make sure the agent is aware of this. Also get a 'mortgage agreement in principle' sorted out - this says to vendors that you have your finances in place. I would keep looking for other properties and just leave your offer on the table with the agent - don't let them think they can intimidate you because you're new at this! Good luck!

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    • #3
      Re: 'Best and final offer'

      In particular the process can be used when a house requiring renovation is offered for sale. interest will range from property developers, investors, builders and, of course, traditional home buyers looking to create a family home rather than being focused upon creating a profitable resale. Each of these parties will have a different opinion on the costs required to renovate the property and the time that will take, because of these variables each person will have a different opinion on the price they are prepared to pay.

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