Accepting an offer

This content applies to England only.

Housing laws vary between England and Scotland. Get advice relating to Scotland

If a buyer is interested in your home, s/he may decide to make an offer to buy it. This is normally done through negotiation with your estate agent. The buyer doesn't necessarily have to offer the asking price and the price you get when the sale is final may be different.

How offers are made

If you are selling your home privately, the buyer will probably make the offer to you directly. If you get a private offer but you have signed a contract with an estate agent, you may still have to pay fees and commission depending on the kind of contract you have.

If you are using an estate agent, the buyer will probably make an offer through the agent. You should be told about any realistic offer that is made. The estate agent may give you advice about whether s/he thinks the offer is reasonable but it's up to you do decide whether to accept it or not.

The price

Many buyers will make an initial offer below the asking price so you should expect to negotiate. However, when there is a lot of demand, some properties may eventually sell for more than the original asking price. The price you are likely to get usually depends on:

whether your home is in a popular area
whether the asking price is realistic compared to similar properties
how quickly the buyer wants to move.

Your estate agent should be able to give you an idea of whether what you have been offered is reasonable. However, it may also be worth doing some research to find out what similar properties in the area are selling for. If you don't want to sell for the price you are offered, you can ask the buyer if s/he is willing to make a higher offer, wait for another buyer, or make a 'counter offer' setting out the minimum price you are prepared to accept. However, it is important to be aware that you may be waiting a long time for another buyer to make an offer.

Accepting offers

You can accept offers from more than one buyer but you have to inform both buyers if you decide to do this. The buyers may be willing to compete for the property but there's also a risk that one or more of them may pull out.

You don't necessarily have to accept the highest offer you get. For example, if you need to move quickly, you may prefer to accept an offer from a first-time buyer or someone who has already found a buyer for her/his previous home. This could reduce your chances of getting stuck in a chain. Similarly, some buyers may be able to pay in cash or will have already found a lender who will give them a mortgage if the property is suitable. Most lenders can give buyers an 'agreement in principle' certificate confirming approximately how much they will be able to borrow.

What the offer means

The offer that the buyer makes is not necessarily the price s/he will pay if the sale is finalised. Offers can be made verbally or in writing but should always say that the offer is 'subject to contract'. This means that there is still room for negotiation on the conditions of the sale. This may be necessary if the buyer's survey or homebuyer's report finds major problems in the property that would be expensive to repair. If this happens the buyer may want to:

agree a lower price
get you to carry out repairs before contracts are exchanged
pull out of the sale.

You (or the buyer) may also want to change the price agreed if property prices rise (or fall) dramatically between the offer being made and exchange of contracts. If the sale falls through, any fees that you and/or the buyer have already paid will probably not be refunded.

Holding deposits

Some estate agents ask buyers to pay a deposit of between £100 and £300 when they make an offer. The estate agent normally keeps the deposit from the date the offer is made until the sale is final. It doesn't mean that the buyer is legally obliged to buy the property but it isn't normally refunded if s/he pulls out.

The holding deposit should be given to you when the sale is completed, along with the rest of the sale price. Ask your estate agent about how this will be done to make sure.

Taking the property off the market

If you accept an offer, the buyer may ask whether the property has been taken off the market. You don't necessarily have to do this but the buyer may be reluctant to proceed with the sale if the property stays on the market. This is because there's a risk that you will get a better offer from someone else, gazumping the buyer. It's perfectly legal to accept another offer before contracts have been exchanged.

Instructing your solicitor

After accepting an offer, you (or your estate agent) will need to give your solicitor certain information to begin the legal preparation for the sale. You will need to confirm:

the price that has been offered
the buyer's name, address and phone number
contact details for the buyer's solicitor
a list of any fixtures and fittings included in the price
any other conditions of the sale.

Protecting the sale

If you want to avoid the sale falling through, you can arrange to sign a separate legal agreement with the buyer as part of the legal preparation. These agreements normally say that neither side can pull out as long as contracts are exchanged within a certain time. Making this type of agreement usually involves extra legal fees and/or a separate deposit. Your solicitor and/or the estate agent may be able to help you arrange this.

Alternatively, you may prefer to keep the property on the market and allow the estate agent to arrange more viewings. If you are selling privately, you may want to keep contact details of other buyers who have shown an interest.

Calling the sale off

Either you or the buyer can call the sale off at any point between an offer being accepted and exchange of contracts. You can do this if you get a better offer or decide not to move for any reason. Similarly, the buyer can pull out if:

s/he has problems getting a mortgage
a survey finds problems in the property
s/he finds another property that s/he prefers.

If you call off the sale, the buyer can ask for a contribution towards any fees or expenses that s/he has lost. However, you don't have to pay unless you made a legal agreement when the offer was accepted, saying that you would do so.