After Offer

Agreeing an offer is only the very beginning of the sales process, beneath the surface lurk lengthy negotiations and some rather nasty surprises. It's here that a good agent is really worth their salt. 1 Problems with Survey This can be anything from damp issues to problems with the roof. These issues need to be negotiated between both parties and can sometimes get sticky involving price reductions or lengthy negotiations. A common issue that seems to rear its ugly head more frequently is whether a house/ flat complies with Building /Fire regulations or not. Open plan living is very popular these days and many properties fail to comply with current fire regulations and often require walls to be re-built in the inconvenient places whence they came. It's easy to see how this can become a real problem for a buyer who bought the place because of its airy ambiance - not least for the mortgage and insurance companies. Fortunately though there are ways around this awkward situation. One popular option is installing a mist/sprinkler system in parts of the house to meet the regulations. Sellers will need to make sure they have completion certificates for any works carried out, solicitors will request this. Failure to have these documents in order may result in a buyer who requires finance not being able to proceed. A bank will not lend funds on a house/flat that cannot be insured - not good. 2 Delays with booking in Valuation and Survey This is a common issue during sales progression. To get the ball rolling the lender will require a valuation survey (so they know what they're lending against) and the buyer will probably want to have a survey done. Very often buyers will confirm they have finance in place or a mortgage in principal when this is simply not the case. This can potentially waste a seller's time by suffocating property exposure and viewings if the property is taken off the market. A seller should make sure their buyer can provide proof of funds before taking their property off the market, their broker can provide a copy of the mortgage application or their solicitor can provide an undertaking they have reviewed their finances and can proceed with the purchase. Once an offer is acceptable to a seller for their home it is often recommended the property should remain on the market until a buyer has paid or at least booked in their mortgage valuation and survey. This will show the buyer's commitment to the property and save a whole can of worms later down the line. 3 Fixtures and Fittings / White goods This really can be an issue during the sales process - there is often confusion between a seller and buyer as to what has been agreed when an offer has been accepted. This can be anything from white goods in the kitchen to curtains in the living room. This may seem like a small issue but you'll be surprised how a £450 washing machine can potentially scupper a £3m house sale when tensions are high and both parties knuckle down to a cold war. A seller will need to make sure their agent is cystal clear when discussing the property with a potential buyer, what's on the table and what's not. These terms and/or agreed items will need to be stipulated in the sales memorandum to all parties once an offer has been accepted, and it's here that both parties can turn if a disagreament arises. It's amazing how easily this little ‘gotcha' can be overlooked by an inexperienced agent. 4 ‘The Chain' - Linking an onward purchase It's very common for sellers to be concerned about making an offer on their next property before selling their current one. Particularly within the London market, if a good property comes available and the price is right, it will be snapped up quickly. To avoid missing out on the ‘right one', it makes sense to find a buyer for your current property first. Providing that there is a degree of transpareny and good communication between the seller, agent and buyer this can be a simple process and is by far the better (if not apparently riskier) option. We are currently in a ‘sellers market', with the number of willing buyers outweighing the number of properties available, there is likely to be a buyer for your property who is happy to agree a price with you and wait until there is a complete chain. Once you have agreed a sale with a buyer, they will appreciate periodic updates on your search progress. This will keep your buyer engaged, and give them some guidance on when the chain is likely to complete. Particularly when you are transacting as part of a chain it is essential that you instruct a recommended solicitor where you will have one point of contact, so the conveyancing is dealt with efficiently. If a buyer is applying too much pressure, or decides that they are not willing/able to wait “a £450 washing machine can potentially scupper a £3m house sale when tensions are high and both parties knuckle down to a cold war.” any longer, you are easily able to re-market the property to find another buyer who is willing to wait. Indeed a good estate agent should be prepared for the worst and will have tried to keep his fingers in a few pies on your behalf. Of course there's a myriad of stumbling blocks and hurdles between you accepting an offer and exchange (when the sale is legalised). Getting an acceptable offer in the first place can be difficult in its own right - be sure you're well placed to make the most from it - and save yourself a lot of stress later down the line by being well prepared and in the right frame of mind to act impartially.