Sellers will often sell for less to a buyer who can move fast, and seem less likely to ruin the chain. Here's a priority list for every seller looking for their ideal buyer:
- 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
Make your buying position as secure as possible by climbing as far up this list as you can!
How can you show you’re serious? Consider sharing your mortgage in principle, your solicitor's details and a screenshot which demonstrates you’ve got money in the bank.
Next, determine what you think is a fair value for the property
- Use a Nested Buying Report to understand when the property was first listed and what has happened to it since. A correctly priced property typically goes under offer within 4-8 weeks, so if it has been longer, a lower offer may be appropriate.
- Find examples of similar local properties that have sold recently to benchmark what this one might sell for. Your Buying Agent can find this for you in a Buying Report Plus.
- Ask the agent why they’ve valued it at this price - they might have lots of evidence that it’s valued accurately or might hint that they think it’s priced too high.
What the owner is willing to accept is just as important as what the property is worth.
So, understanding the seller's situation before making your first offer is crucial. Ask the agent: why is the owner selling? And have they found their next home? If so, they may be more likely to accept an offer. How many offers have they received? If there are no competing offers you can take more time and start by offering less. If there are some serious offers on the table and you’re under time pressure, use our “High demand property” strategy.
Making a great offer isn't just about the price:
- 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.
- If there are few competing offers, start by offering a significant discount on the asking price. Buyers often offer 5-10% below asking price with their opening offer.
- It's very unlikely your first offer will be accepted. If so, ask for a counter-offer or an indication of how far away you are, so that you know whether it's worth proceeding with negotiations or not.
- Know your max offer. It’s best to make no more than four offers in total. Work backwards from your maximum so you know how much to increase by. It’s usually advisable that the second offer is the biggest jump up. If possible, each time they reject, say that you need to go away and think about whether you want to make another bid or not. Take 48+ hours between each offer and be clear that each offer is a real stretch, which implies that it is your best offer, without committing you to saying that. Do not exceed your max offer!
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.