We are often asked by our clients whether they should withdraw their property from the market once an acceptable offer has been made. There are a number of angles on this subject which should be considered in the context of each specific set of circumstances.
Firstly, from an ethical perspective, it could be argued that once you have agreed to sell to someone, you have given them your word, and leaving the property on the market
could be regarded as a suggestion that you would renege if a “better” buyer
came along. This can encourage gazumping
(where a higher offer is accepted over the original one).
Some vendors would not have a problem with this.
However, in practical terms it is often the case that once the original buyer
falls away in favour of the new, higher, buyer, the new buyer feels the
pressure is off, and they regret having offered more than the market price.
Their offer is subsequently reduced (gazundering). This practice often serves
to frustrate the vendor and even risks the sale. The first offer is usually the
best offer!
However, there is no point in taking your property
off the market if your buyer is not in a strong buying position or has a linked
transaction. This latter situation reduces the saleability of your home to the
saleability of any linked properties, over which you have no control.
So our advice is generally only to remove your
property from the market, perhaps for a fixed period of time (say three weeks
to keep the pressure on the buyer to perform) until you have confirmation from
the buyer’s solicitor that they have no linked sale, and that they have their
mortgage agreed in principle with sufficient deposit available.
As always, we’re here to help and happy to advise
on any property-related issue. Please feel free to call us on 01245 330500.
