When your home is on the market, it can be tempting to accept a high offer as soon as it comes through; but there are other important factors to consider, such as your buyer’s position.
In this guide, we’ll take a look at the different types of buyers, what a buying position is, and how to use this knowledge to settle on the right offer.
What does buying position mean?
The buyer’s position refers to their ‘readiness’ to proceed with buying your property. So, whether they are a first-time buyer, a cash buyer, or they’ve already sold their current home, they could be in a great position to move. If one of your priorities is a quick and relatively hassle-free sale, you will want to consider your buyer’s position.
Related: Property chains explained
First time buyers
Accepting an offer from a first-time buyer could speed up your move. This is because first-time buyers are chain-free, meaning they don’t have to sell a home before they can purchase yours. However, your agent will need to run some checks on the buyer first to ensure that they are in a good financial position, such as having a mortgage agreement in principle.
If the first-time buyer is in rented accommodation rather than living with family, then they should still be able to move swiftly with few complications. However, if the buyer is in a fixed-term agreement, they may have to continue renting the property for a set period of time before they can move. This could prevent them from completing quickly.
Related: How to know which offer to accept on your home
Buyers in a chain
Any buyer who needs to sell their property before they can buy yours is in a chain, and this does impact their buying position. However, there are a number of factors to consider, such as the length of the chain and their position in it. For example, if it’s only a chain of one, whereby the buyer only needs to sell their home to proceed, then they are still in a relatively good position to move.
On the other hand, if your buyer is involved in a chain of ten, then the sale of your home will rely on numerous other sales being completed. Typically, the longer the chain, the greater the risk of delays or your sale falling through.
Related: At what stages can a house sale fall through?
Selling position
Because of this, the selling position of other parties involved in the chain also matters. If there’s a chain of five, and all sellers have financially committed to their sales, have hired solicitors, had surveys carried out, and mortgage deals are at the ready, then this puts everyone at lower risk of the chain collapsing.
Your estate agent can investigate your buyer’s position and chain and can report back before you accept the offer.
Cash buyers
Buyers who can pay upfront are arguably in the most attractive buying position, and because of this, they are also in a great position to negotiate.
Cash buyers often place a lower offer in exchange for greater security and flexibility. If you’re keen on achieving a fast sale and willing to accept a smaller sum for your home, a cash buyer might be the ideal option for you.
However, there are some risks associated with accepting a cash offer, which is why it’s important that your agent runs thorough checks to confirm the funding situation of the buyer before accepting their offer. They will speak to a professional acting on behalf of the buyer, such as their accountant, solicitor, or bank to verify that the offer is genuine.
Related: The dos and don’ts of negotiating your home’s sales price
Deciding on an offer
Figuring out whether or not to accept an offer is no simple process, so it can help to have an agent on your side who is well versed in your local market and is experienced in selling homes similar to yours.
It’s important to note that, you don’t have to accept the first offer you receive, or the highest price, or even the buyer in the best position. All these factors should weigh equally in your final decision. Remember, the price is important, but it’s not everything. You need a buyer who is dependable and whose goals align with yours.
Are you thinking about selling your home? Contact our expert team today
