Should I always accept the highest offer?

We are often asked by our clients, on the closing date, if they should simply accept the highest offer. Instinct says “yes”, but it’s not always as simple as that. You see, price, whilst being very important (and sometimes the most important) element of the sale, it’s not the only thing you need to consider.

Whilst the highest offer is clearly attractive, sometimes, it’s not the “best” offer. You see, whilst price is clearly a very important factor when you’re selling your house, it’s not the only one.

As solicitors, we advise clients every day on the terms of the offers they receive when they’re selling their houses. It is our job to guide you through all the terms and conditions in the offer and explain these to you.

In addition to the conditions contained in each offer, it pays to find out more about each buyer. For instance, are there any buyers who are cash buyers. Those are buyers who have the funds available to buy your house without being dependent on a sale or a mortgage – or both!  That means they’re much more likely to be able to complete the purchase.

One of the biggest risks is accepting the highest offer from a buyer which contains a condition that it’s subject to their sale, only to find it falling through should the buyer be unable to sell their existing house. If they do run into trouble and fail to sell, it’s likely they’ll pull out of the purchase they have with you.

Similarly, if a buyer’s offer is subject to then receiving a satisfactory mortgage then there’s always the risk that they’ll withdraw should the mortgage fall through – and you might not find that out until nearer your entry date.

Then there’s the question of timing. What happens if the buyer wants to complete quickly but you haven’t found a new house to buy? Alternatively, the buyer might want a late date of entry but that might not suit your purchase date.

There can, of course, be other technical conditions contained in the offer that may cause an issue. Clauses relating to alterations, boundaries, access and the like. These types of conditions also need to be addressed.

All of these things have to be considered and it’s not always the highest offer that ticks all the boxes. It’s clearly preferrable to have a number of offers from which to choose and we will guide you through each of those should you find yourself in such a position.

You must therefore remember, it’s not always the highest offer that turns out to be the best offer.