Offers and negotiation
The estate agent will put the offer to you and should establish as much as possible about the buyer’s circumstances, including their chain, mortgage position and intended timescale.
You can accept it, reject it or negotiate. In England and Wales, accepting an offer does not create a legally binding sale.
Yes. An estate agent is required to pass offers to the seller promptly and in writing until contracts are exchanged, unless the seller has previously given clear written instructions not to be informed about offers of a particular type or level.
This means you remain in control of deciding which offer to accept.
Not necessarily. Price is extremely important, but so is the likelihood of the transaction completing.
A slightly lower offer from a chain-free buyer with finance arranged may sometimes be more attractive than a higher offer from someone whose own property is not yet on the market.
Your agent should investigate their position. This normally includes establishing whether they need to sell another property, the status of that sale, how they intend to fund the purchase and whether mortgage arrangements are in place.
This process is often referred to as qualifying the buyer.
No. A genuine cash buyer has no mortgage approval to obtain, which removes one potential complication, but their overall circumstances still matter.
A well-prepared mortgage buyer with a short or complete chain can be just as attractive. What matters is the strength and reliability of the whole transaction.
You can but understand the implications. Until they secure a buyer, they may not be able to proceed with your purchase.
You might choose to accept their offer while continuing to market your property or wait until they become proceedable. The right decision depends upon demand for your home and the strength of their offer in conjunction with your selling position.
Your agent should explain the amount and circumstances of each offer so that you can make an informed decision.
You may choose one immediately, negotiate individually or invite interested buyers to submit their best and final offers. The objective is not simply to achieve the highest headline figure but the strongest overall transaction.
This is a process in which interested buyers are invited to submit the best offer they are prepared to make by a stated deadline.
The seller then considers those offers alongside each buyer’s circumstances. It is not an auction, and the seller is not obliged simply to accept the highest figure.
Unfortunately, yes. Until contracts are exchanged, an offer is not legally binding in England and Wales. However, if you choose to use Ashtons’ Assured Move product, a lock-out agreement will be put in place between you and the buyer, with penalties attached.
A buyer may attempt to renegotiate following a survey, mortgage valuation or change in circumstances. You are equally free to reject the revised offer and decide whether to continue with that buyer.
Gazundering is when a buyer reduces their offer, often late in the transaction, before contracts have been exchanged. However, it happens relatively seldom in the Home Counties.
The seller is not obliged to agree to the reduction, and we would also look at what alternative buyers may be available.
Yes. Until exchange of contracts, another buyer can make an offer, and the estate agent must tell you about it.
Accepting that later offer is sometimes described as gazumping. Sellers should consider carefully not only the extra money but the risk of disrupting an established transaction.
In England and Wales, the transaction normally becomes legally binding when contracts are exchanged.
Before exchange, either buyer or seller can generally withdraw without being obliged to complete, although they will normally lose the money they have already spent on the transaction.
