Buyers using ‘best bids’ to secure homes to which they can add value
AN increasing number of properties are going to “best bids” as buyers vie to secure homes to
AN increasing number of properties are going to “best bids” as buyers vie to secure homes to which they can add value.
Katie Baldwin, an associate director at Savills in Bell Street, Henley, says: “It is indisputable that the greatest demand for property over the past couple of years has been for flats and houses priced up to £1million.
“Even more desirable have been properties where buyers have recognised the opportunity to add value — whether that involves updating, extending or rebuilding — and there is a strong correlation between level of interest and properties where value can obviously be added.
“Our team in Henley and many of other Savills offices around the Home Counties region are seeing a similar trend. We have recently marketed several properties which have gone to best bids and, on all occasions, the asking price has been exceeded.
“When so many parties are competing to secure one particular property, going to best bids is one of the fairest and most effective ways to implement a purchase.
“Buyers are invited to make one offer of their choosing and at the highest level they feel they are prepared to pay for the property. However, the vendor is under no obligation to accept the best financial bid, enabling position (ie mortgage or cash), deposit amount and timing to still influence the decision-making process.”
Here’s what potential buyers should think about if making a best bid...
1. Offer as much as you would feel it is worth. Then, if you do miss out, you know you couldn’t have done any more to get it.
2. Make sure your finance is in place. If you are buying with a mortgage, you will need an offer letter from them to confirm finances at the point of making your bid.
3. Be adaptable in terms of time-frame — it could swing the decision in your favour.