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Choosing a buyer
There are certain types of interested parties who will have certain characteristics. Sellers are often vulnerable to buyers trying at the last minute to renegotiate the price downwards (gazundering), when the legals are just ready to sign, by buyers using the excuse of a bad survey or financial difficulties. Sellers should ask a few relevant questions to find out who are the real potential buyers and what are their personality traits:
Questions To Ask
- Do you have a property to sell?
- Where is it?
- How much of a mortgage can you afford?
- Where else have you been looking?
- When do you want to move?
- How long have you been looking?
You will normally be able to put your potential buyers in one of the following categories:-
Time Wasters
- Nosey neighbours interested in getting valuation or decoration ideas for their own property
- Financially impoverished show offs on a day out
- Ditherers who may never decide on anything or worse will lead you up the garden path and change their mind at the last minute
- Perverse folk who enjoy people making a fuss of them
First Time Buyers
- Have a specific limited budget
- Can only spend what they can borrow
- Can arrange mortgages quickly but don't know how to
- Will rely on advisors who may delay matters
- Are flexible on completion dates but have no sense of urgency on progressing their mortgage or legals which can cause you delay, uncertainty and stress later
Cash Buyers
- A rare breed
- May not be cash buyers at all "Oh, the building society is providing the cash!"
- As they are using their own cash, funds may be tight
- May not take the survey or mortgage processes seriously until late on causing you delay, uncertainty and stress at the last minute
- Flexible on completion dates
- Can complete quickly if necessary
House Already Sold Buyers (in rented situation)
- Will need mortgage to add to funds from their sold property
- Will know exactly what they can afford and will have limited financial flexibility
- Flexible completion dates at a time that suits the seller
- Can complete quickly if necessary
House To Sell Buyers
- Not really buyers at all because, unless financially well off, despite what they say they won't sign up until their own property is not only agreed for sale but also signed for (a long way off!)
- Timing unknown
- Will probably not yet have made any mortgage enquiries
- Don't tell them you'll keep the property or hold the price for them even if they are nice!
- Ask your agent about whether their house will sell quickly
Make sure your agent investigates the potential buyers financial and own property situation. Can they raise the mortgage they claim to be able to? Beware of recently self employed buyers who will have difficulty verifying their income for mortgage purposes. Is their property really agreed for sale?
Accept offer
Most sellers usually allow the estate agent to negotiate on their behalf. They are professionals who do this for a living and act as a mediator between you and the buyer.
However even if the estate agent is conducting the negotiations on your behalf you should be in close communication with them and discuss every offer before making a decision.
Remember that this is a negotiation process - Play hard but fair. It is rare for a buyer to offer the asking price even if they are ultimately willing to pay it. Most buyers will expect the buyer to have some flexibility built into it and you should be aware that your initial asking price may go some way to determining any opening offer you receive.
When you are happy with both the final offer and the individual who is buying your home the Estate Agent will send a confirmation letter to the successful buyer and the Solicitor will begin the conveyancing procedures.
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