Offer strategy for high demand properties
When moving home, we’ve all fallen in love with properties which can feel like a long shot. But if that sounds like you, all is not lost! If you want to make an offer on a property that has a lot of interest and you need to act quickly, here’s an offer strategy you can try.
First, ensure that the demand among buyers is genuine and learn what kind of offers you are competing with:
- Ask the agent how many offers they have received, the selling position of those offers (i.e.are they first time buyers or not), and the offer amounts. They may not disclose the actual offer amounts but might hint at them.
- If there aren’t any serious offers yet, use our “Normal demand property” strategy instead.
Sellers will often sell for less to a buyer who can proceed quickly, if there is a lower risk they will pull out. With this in mind, here's a list of dream buyers in priority order that you may need to queue-jump:
- 1. Chain free cash buyer
- 2. First-time, or other chain free buyer with a mortgage in principle
- 3. Chain buyer who is under offer, cash trumps mortgage
- 4. Chain buyer who is listed but not under offer
- 5. Chain buyer who is not listed or a first-time buyer without a mortgage in principle
If there’s an offer on the table from another buyer higher up this list than you, you’ll likely need to exceed that offer to be considered.
To show that you're serious and ready to proceed, be prepared to share your mortgage in principle, your solicitor's details, and a screenshot showing proof of funds.
You should also try to understand the seller's situation to make your offer more appealing. Ask the agent: why is the owner selling? And have they found their onward property? Make it clear you can move fast or be flexible. If the seller still needs to find their onward property, this might make all the difference.
Making your offer:
- Make your offer over the phone, and follow this up with an email. You don’t want to give away too much on the phone call. In your email you can include details of your solicitor, proof of funds and/or mortgage in principle, and make it clear that you can proceed quickly. This allows you to build rapport, get instant feedback, and makes you look prepared.
- You should have a good idea of whether you have a chance based on what the agent is telling you about other offers, and how much you need to offer to be in with a shot. If there’s a lot of demand, the accepted bid is likely to be close to asking price, or more.
- If you’re asked to make your “best and final offer” with a “sealed bid”, decide the maximum you’d be willing to spend on the property and make that offer. You don’t want to kick yourself later if another offer is accepted and you didn’t go all in.
Your Nested Buying Agent can save you tens of thousands
If you’re selling with Nested, you’ll have the option of a professional Buying Agent by your side. They can value the property, put together a bespoke negotiation strategy and can even negotiate for you, often saving you tens of thousands! Find out more about Buying Agent Plus.