These FIVE tips can strengthen your best and final offer

As potential buyers must submit their offers confidentially and by a deadline, the process can be particularly stressful.

With recent Google searches for ‘best and final offer tactics’ skyrocketing 350% in the last month, Mehran Charania, property expert at Ready Steady Store has revealed five tactics that could help secure your dream home through your best and final offer.

Set a firm budget that you will stick to

“When going into the best and final offer process, it is key to set yourself a firm budget that you will stick to. Although most buyers go into the process with a budget in mind, this number can get lost in the process when competing with others – so it is important to be realistic.

“Due to the nature of the best and final offer process, buyers find themselves ‘blind bidding’. This gives the seller a chance to look at the most attractive offers without those involved knowing what they’re up against, avoiding lengthy bidding wars. Because of the lack of information provided to buyers, they can often overpay as they are unsure of the other offers.

“It is best to decide on your budget number after assessing your financial position. Setting a budget ahead of this process allows you to have a clear limit that should not be swayed by emotional factors, pressure, or time restrictions.

“Buying a house has many hidden costs so ensure you take this into consideration when setting your budget so that you do not end up going over this number that you have agreed on.”

Understand the local market

“Understanding the local housing market is crucial for making a best and final offer on a house as it helps you determine a competitive, but fair price, meaning you will avoid overpaying on the property.

“By looking at other comparable sales within the local market you can decide on an offer price that mirrors these and therefore is reasonable and holds a strong position.

“Previous comparable house sales will help you set realistic expectations and therefore offer a realistic price. This can help avoid overbidding on the property and therefore save you potentially thousands.”

Look at external factors

“Similar to understanding the local market, it is important for house buyers to look at external factors prior to going into the best and final offer process.

“This involves looking at what else is on offer aside from the actual house and can include travel links, school catchment areas, proximity to shops, cafes, leisure facilities and crime rates.

“These can all impact property value and should be taken into consideration to make a more accurate and strategic offer.”

Understand seller motivations

“Sellers may have different motivations for moving house, whether this be downsizing, upsizing, relocation, a new job or family circumstances.

“Buyers can sometimes find themselves at a crossroads when offering their best and final offer as they may be in a financial position to put forward a price that is advantageous but lacks non-financial perks.

On the other hand, they may be able to offer stronger terms at a lower price. It is important to take into account all factors such as mortgage presence and completion speed when putting in your final offer.

“Sellers often do not release their motivation for selling to buyers throughout this process to protect their negotiating position. However, they tend to favour offers with fewer contingencies, cash payments and fewer time restrictions.

“Understanding these motivations, if they have been disclosed, can help avoid overpaying as you can tailor your offer to suit.”

Survey the property

“Surveying a property prior to your ‘best and final’ offer can help buyers negotiate and justify their offer.

“Not only can this assist in providing an insight into the property's current market value but also reveal hidden issues that may not have been immediately apparent when viewing the property and prevent submitting a best and final offer that doesn’t take these factors into account.”

Mehran Charania says: “While a best and final offer is usually the last offer that a buyer will put forward, it is not legally binding when accepted by the seller. When contracts have been exchanged by the parties involved, they then become legally binding.

“This can, unfortunately, lead to buyers being ‘gazumped’ by the seller who is still legally able to accept a higher offer from elsewhere prior to contracts being signed – so it is really important to make sure that your offer is the strongest it can be, while still remaining feasible for you.”

For more information and property tips, on visit: https://www.readysteadystore.com/