It’s a battlefield out there! Like Black Friday bargains, properties are flying off the shelves and people are willing to do whatever it takes to pick up their next property. Some more than others.
With the high level of property sales that we are still registering we are encountering a market where, more and more, we are seeing properties selling for asking price or above. Stock levels remain low, with the level of new property to market barely matching the rate that sales are agreed. The fervour for new property is only growing even though the world around us are losing their heads.
In most common markets any single one of the challenges we are currently faced with would slow the housing market. However neither war in Ukraine, global pandemic, energy price rises or a wider cost of living increase seem able to put the brakes on.
Although nowhere near on a par with the above, the mere mention of ‘best and final’ bids on a property can strike fear into the hearts of any prospective purchasers. This often lamented process can seem cruel and unfair but when faced with multiple interested parties constantly increasing their offers to secure a property, it can be the only way to come to a conclusion.
Your agent will always act with the upmost professionalism in these circumstances and will set a deadline day and time for offers to be received. All offers will be ratified with financial details and sales chains fully checked to present the fairest case for each offer. Then the decision rests with the vendor of the property. Everyone’s circumstances differ – do they go with the highest offer, the easiest sale (cash buyer) or did they just prefer a particular person when they met them?
The result is often heart breaking for most and joyous for one. Excitement takes over and the sale is agreed. Frustration takes hold in the unsuccessful and a choice needs to be made. Was that really our best offer? Could we have found a little more?
Most are magnanimous in defeat however the ugly head of gazumping sometimes appears. Commonly misunderstood as merely being outbid, gazumping is when after a sale is agreed a higher offer comes in and is subsequently accepted by the owner. Although never encouraged by the agents they are legally bound to put all offers forward should an unsuccessful party return.
This is rare and the typical sales process tends to run smoothly from agreement to completion, but should you find yourself in a ‘best and finals’ situation make sure you know what you want and how it is best to achieve it.
If you require any guidance through this current property market please come in and speak to a member of the Poole Townsend team in one of our town centre offices.