Reading an offer: why the highest number is often not the best
An offer is not a price. It is a price and a probability, and the second one decides whether you ever see the first.
Roughly a third of agreed sales fall through, and the ones that fall through are disproportionately the ones accepted on price alone. A buyer with no chain, a mortgage agreed in principle and a solicitor instructed is worth several thousand pounds more than a higher offer from someone whose own sale has not started.
The cost of a fall-through is not just the delay. The property returns to the market having been under offer, which buyers read as a property with a problem, and the eventual sale is frequently at a lower figure than the original offer.
What to establish about every buyer
The questions are straightforward and any serious buyer will answer them. An evasive answer is itself information, and it is far better to establish these facts before accepting than three months later.
- Is the buyer in a chain, and if so how long is it and has anything sold yet?
- Is a mortgage agreed in principle, and with whom?
- How much deposit do they have, and can they evidence it?
- Has a solicitor been instructed, and when?
- Are they buying to live in or as an investment?
- What is their ideal timescale, and does it match yours?
Valuing the difference
A chain-free buyer is worth a measurable premium, and it is worth putting a figure on it. If a sale falls through, you lose the marketing period, the momentum and potentially a buyer's market — and the evidence on re-listing suggests the eventual price is typically a few per cent below the failed offer.
That means an offer 2–3% lower from a chain-free buyer with funding in place can be worth more in expected terms than the higher offer. It is not certain, but it is a better bet, and the decision should be made on the odds rather than on the number.
The renegotiation risk
A high offer that is then renegotiated after the survey is a common pattern. The buyer offers competitively to win the property, then presents a survey finding and asks for a reduction, at a point where you have already turned other buyers away.
Two protections help. First, ask for evidence of funding and a mortgage agreement in principle before accepting, which filters out buyers who are not in a position to proceed. Second, do not stop marketing entirely until contracts are exchanged, or at least keep a note of the other interested parties so the position is recoverable.
Common questions
- Should I accept the highest offer?
- Not automatically. The highest offer from a buyer in a long chain with no mortgage agreed may never complete, and a fall-through costs you months and often a few per cent of the eventual price. Weigh the offer against the buyer's ability to proceed, and be prepared to accept slightly less from a buyer who is genuinely ready.
- What is a proceedable buyer?
- A buyer who can actually complete: they have a mortgage agreed in principle or are a cash buyer, they have a solicitor instructed, and if they have a property to sell it is already under offer or sold. A buyer whose own sale has not even started is not proceedable, however strong their offer.