When to Accept an Offer on Your House

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Properties in the UK are currently selling for record prices. Estate agents can barely keep up with demand — many have more properties marked as sold than they have new houses being added to the market.

Owners of the most in-demand types of property in sought-after areas have their pick of buyers. A third of homes for sale are currently getting at least three offers. 

If you’re in this fortunate position, how do you choose between offers? If you’re in a less favourable position and aren’t inundated with offers, should you accept the first one that comes along? It’s not always as simple as going with the highest bidder. There are a few factors you should consider as well as how much money is on the table.

1. Is the Buyer in a Property Chain?

A property chain is a series of linked house purchases; if one collapses, this will affect the other transactions. One in three house sales in the UK fall through and house chain problems are often to blame when things go wrong. 

This is why sellers love chain-free buyers. No house sale on the open market is guaranteed until contracts are exchanged, but if you accept an offer from a chain-free buyer, there is a lower risk of delays or a failed sale. 

If you have more than one offer to choose from and there is little between them, opting for a chain-free buyer is a savvy move. It could save you from the stress and expense of problems further on in the sale process.

2. Does the Buyer Need to Secure a Mortgage?

Accepting an “unqualified offer” — one from a buyer who does not have the financing they need to purchase in place nor any proof that they could do so — is risky. If the buyer does not have the funds to purchase your home outright — nor have they spoken to a mortgage advisor to find out how much they could borrow — you may be setting yourself up for a fall. 

A buyer who has an “agreement in principle” from a mortgage lender is a safer bet. While this document is not a guarantee of a mortgage. It shows that the buyer has gone through the process of assessing their finances, working out what they can afford and researching available deals. 

If you’re sitting on an offer from a cash buyer, you’ve hit gold! A cash buyer is chain-free and they have the funds to move ahead with the sale straight away. A cash purchase is generally simpler and quicker, although there are no guarantees.

3. How “Hot” is the Market?

The housing market in the UK is currently very “hot” — properties are moving fast! But this won’t be the case indefinitely. Sales are forecast to slow and prices to drop as we head into the autumn.

If the pool of buyers diminishes, there may be fewer offers on the table to choose from. Should you accept the first offer you receive or keep your powder dry and hope that the market picks up or a more determined buyer materialises? 

There is no “right” answer to this. It really depends on your circumstances and priorities. Is it more important to get the best price you can? Or is a quick house sale the top priority? If the market is showing signs of slowing down, be realistic about your expectations. You may not be able to get a fast sale and top dollar. 

4. How Quickly Do You Need to Move?

If selling your house fast is a must, you may need to compromise on the sale price. Homeowners seek out a quick sale for many reasons — divorce, illness, financial difficulties or the need to relocate for work. Whatever your personal circumstances are, if you know that you absolutely cannot wait for months to sell up and move on, accepting an offer that is below the market value of your home may be the right choice.

A sale on the open market currently takes on average around four months and it can take a lot longer for properties that are in a poor condition or located in an unpopular area. A low offer is better than no offers if you need a quick house sale.

Whether you’re selling a popular property in a hot market and are inundated with offers, or have just one interested buyer in a cooling market, deciding when to accept an offer on your house can be difficult. Try to look beyond the numbers and weigh up all the pros and cons of each buyer. A lower offer may save you considerable stress and expense in the long run.

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