Jargon Buster: Best & Final Offers

'Best & Final Offers', also known as 'Best & Finals' - a phrase that can unnerve even the seasoned buyer and up the stress factor for first-time buyers to a whole new level. But what does it actually mean, and is it really that scary? Sally Collings, our Branch Manager in Tavistock explains it all!

What does it mean when a property goes to 'Best & Finals'?

'Best & Finals' is a technique used by sellers of popular properties who have received similar offers for their home from two or more sets of buyers. In order to move quickly to a position of being able to accept an offer, the seller asks all buyers to submit their final offer by a certain day/time, so that they can compare these offers side by side.

Does the highest offer always win?

Not necessarily. The highest monetary offer may not be the 'best' in the seller's eyes - if their focus is a quick transaction for example, they may select a lower offer from a buyer who does not have a home to sell and therefore no complications from a property 'chain' (see a later jargon buster post for an explanation of property chains). An important thing to note is that 'Best & Finals' carries no legal weight or obligation on the part of the seller - they are not required to accept the highest offer, or indeed any of the offers if none prove satisfactory.

Are 'Best & Finals' bad for buyers?

Although generally seen as a strategy which favours sellers, 'Best & Finals' can be a useful process for buyers also - you will quickly find out if the price you are comfortable paying for the property is acceptable to the seller or not, so you can either move forward with the process to purchase the home in question, or instead turn your attention back to your house hunt. There is no denying the emotional rollercoaster that can be caused by participating in 'Best & Finals' for a property, but the silver lining is that the process should be over quickly, rather than a vendor drawing out a decision for days or sometimes weeks as can happen in the typical process.

Should I hold a little back in case there's another round of offers?

In short, no. There will not be another round of offers considered, which is one reason that the 'Best & Final' process can feel uncomfortable for buyers - it requires buyers to lay all their cards on the table without the prospect of entering a dialogue with the seller.

Can I find out what all the offers were after the fact?

Unfortunately it is not possible to learn what other offers were submitted after the fact. This lack of transparency is often another cause for discomfort on the part of buyers, as they do not get to know the value of other offers submitted, how many other offers were entered or the decision making process used by the seller to make their choice - all of which can be quite frustrating when you're informed that your offer was not successful and want to know why.

So what's the most effective strategy if you participate in 'Best & Final Offers' for a property?

• Consider whether it might help your case if the seller were aware of particular details of your situation or buying position. If so, a potential strategy to employ is to write a letter to the seller to accompany your offer introducing yourself and describing why yours should be the offer they accept. Agents are legally obliged to pass on all offers to the seller, and any good agent will pass a letter along to the seller at the same time. This technique has certainly been known to swing a deal in a certain buyer's favour in the case where the offers were otherwise fairly similar
• Review your budget and what this property is worth to you, then convey that amount (together with the letter if applicable) to the estate agent. This may be more than any prior offer you submitted, or it may be the same amount, both of which are perfectly fine
• Try to relax while waiting to hear the seller's decision (a hard task we understand!) - the seller will likely be on a similar emotional rollercoaster as they wrestle with which offer is best for their particular circumstances