Let’s Do a Deal: A Guide to Handling Property Offers Like a Pro
When it comes to estate agency, few things are as rewarding as finalizing an offer on a property. The thrill of negotiating, the strategy behind it, and the satisfaction of reaching a deal make it one of the most exciting aspects of the job. However, the process requires clear communication, adherence to legal obligations, and often a good deal of patience. In this post, we’ll walk through the essentials of handling offers on properties, ensuring you’re prepared for every scenario and maximizing your chances of securing a successful deal.
Know Your Legal Obligations
Estate agency in the UK may not be heavily regulated, but there are clear rules about putting offers forward to homeowners. You are legally required to present all offers to the property owner—no matter how low or high—unless explicitly instructed otherwise in writing. So, if someone offers a mere £5 for a property, you still need to inform the owner. The only exception to this rule is if you have prior written instructions from the seller not to accept offers below a specified amount.
Additionally, you must notify homeowners of any offer within two working days, and ideally, this should be done over the phone or in person, not through a written letter, to ensure clear communication.
Establish the Buyer’s Financial Position
Before presenting any offer to the homeowner, it’s essential to confirm the buyer’s ability to proceed with the purchase. This can be achieved in several ways, depending on how they intend to buy:
Cash Buyers: Request a bank statement or a letter from a financial advisor, solicitor, or accountant to confirm they have the necessary funds.
Mortgage Buyers: Verify both their deposit (e.g., with a bank statement or proof of equity from a current property sale) and an agreement in principle from a mortgage lender.
Remember, any financial documents should remain confidential and never be shared with the seller. Document these on your CRM system for safe and secure storage.
Understanding Chains and Chain-Checking
The complexity of a property sale often lies in the “chain”—a sequence of transactions dependent on one another. A buyer can’t complete a purchase until the seller finds a new property or vacates, and this can create long, interconnected chains. To ensure a smooth sale, confirm each link in the chain by speaking with each involved estate agent, focusing on key questions like buyer status, survey schedules, and any potential timing conflicts. It’s essential to do this due diligence, as a single weak link in the chain can cause the entire process to collapse.
Communicate Effectively with the Homeowner
Once you’ve gathered all relevant details about the buyer, present the offer to the homeowner in a clear and personable way. Share insights into the buyer’s motivation, flexibility on timing, and financing to help the owner make an informed decision. This approach humanizes the buyers and can positively influence the homeowner’s perspective on the offer.
Handling Multiple Offers: The Best and Final Offer Process
When you receive multiple offers, a structured approach ensures fairness and transparency. Set a deadline for potential buyers to submit their “best and final” offer and clarify that this will be their last chance to bid. Keep all offers confidential to maintain integrity. After presenting the offers to the seller, reject the unsuccessful bids first—this prevents any last-minute attempts to increase offers after a decision has been made. Then, share the good news with the accepted buyer.
Building Momentum and Finalizing the Deal
With offers, momentum is key. Avoid delays in negotiations; instead, maintain a consistent back-and-forth to keep interest high and quickly address any uncertainties. With a clear structure and effective communication, even complex chains can lead to successful, timely deals.
Mastering the art of negotiating property offers is a mix of legal knowledge, strategic communication, and thoughtful handling of buyer and seller expectations. Follow these steps to keep transactions on track and enjoy the thrill of closing a successful deal.