This article first appeared in the Winter 2017 edition of our Cwtch Magazine. Please click on the thumbnail above to read it as it appeared in the magazine.
Yikes! You've had the offer you've been waiting for! Or have you?
Cwtch gets the inside track on what you really need to know before you accept an offer of sale. We catch Nathan, Sales Director at CPS Homes estate agents Cardiff, for a quick coffee in his favourite local café, on a busy day between valuations.
Offers are fantastic and ultimately everyone’s goal, but it’s easy to get swept away with the excitement and just say ‘yes’ to that full asking price offer without questioning the exact circumstances of your buyer.
All buyer situations vary and can impose dramatically on your move. A major consideration is whether your buyer is part of a property chain.* A long chain of many buyers and sellers is far more at risk of collapse and jeopardising your move. Faced with one full price offer from a buyer in a chain of three or more movers and a lower offer from a first-time buyer, the latter can often be the better long-term choice.
I always have alarm bells ringing in my head when I hear ‘cash buyer’. So many buyers confuse the term and mean money from an impending sale rather than cash in the bank now. If your estate agent calls you about a cash buyer, make sure they’ve confirmed the buyer has funds sat in the bank before you pop the champagne!
Yes. A good estate agent will always fully qualify the suitability of any buyer’s offer before presenting it to you.
I see no harm in being a savvy vendor and I always recommend asking questions of an offer so you can be happy you have accurate facts. Sometimes agents and vendors are too quick to dismiss what I’d call 'almost there offers'.
All vendors want a full asking price or a high offer, and all buyers want good value for money. This often means, as an agent, you receive ‘almost there offers’ which are slightly too far below the asking price that the vendor won’t consider them outright. Sometimes our job as agent is to find the added value that will increase the offer value. For example, would the first-time buyers like to buy the white goods? Does the investor buying want the furniture for future tenants? I always enjoy this part of the negotiation as it’s turning something otherwise unseen into a benefit for the buyer and extra cash for the vendor.
Once you have agreed an offer and are happy with the position of your buyer, you need to instruct a solicitor or conveyancer. They will ensure that everything agreed is written into the sales contract, including the washing machine you’ve negotiated to leave. You won’t miss it once you use the integrated one in your new home anyway!
It is really important to get a good recommendation for a solicitor; ideally from someone who has used them previously.
A chain of multiple home buyers and sellers moving up or down the property ladder have long been the home mover standard. Apprehension surrounding possible chain collapse affects even the hardiest movers amongst us. We asked Nathan to explain the pitfalls and how to avoid them.
"Know who’s at the bottom of the chain. Often these buyers have been in place for months and could be reaching the expiration date on their mortgage application offers; affecting the stability of the chain. Pressure to be quick to find a new home before your chain collapses can add undue stress to an already emotional time."
"How long is the chain? Multiple sales means multiple building surveys, many mortgage applications, numerous solicitors, various planning and building consents to comply with; all of this adding to the risk of someone in the chain pulling out of their sale."
"It's vital to have an experienced, dedicated agent in your corner who's looking after your interests. It'll afford you the simplicity of being able to concentrate on what matters – your move and offer - and no-one else."
Making that big move can be a massive decision, particularly if you are selling a property for the first time.
Whether it’s your first time selling or your twenty-first time, this "13 Point Guide to Selling Your Home" aims to take you on the journey of selling your property to ensure you make the decisions that are best for you.
Download yours today at: cpshomes.co.uk/sellingguide