What is a ‘best and final’ offer?

In recent years, the property market has witnessed a notable resurgence in the use of best and final offers—a trend that is steadily re-emerging as we navigate the post-lockdown era. During the lockdown period of 2020 through to 2022, many buyers were gripped by the fear of missing out, driven by record-low interest rates and a highly competitive environment. This led to a scenario where multiple offers were often made on a single property, sometimes even exceeding the asking price. Now, as the market adapts to new conditions, the concept of best and final offers, also known as sealed bids or induction auctions, is proving to be an effective strategy for sellers.

The best and final offer process involves setting a fixed date by which all interested parties must submit their offers, accompanied by proof of qualified funds. This method offers clarity and transparency, ensuring that all potential buyers understand they need to present their most competitive bid upfront. For sellers, it provides a clear snapshot of the market, allowing them to select not only the highest offer but also the most suitable and reliable buyer. In essence, the process is not merely about securing the highest monetary value—it’s about finding the best overall match for the property with a potential suitor’s position, intent, and convenience factors to offer them choice.

Estate agents play a vital role in this process, offering advice and helping to gauge buyer intent. They assess whether a buyer is fully committed or if the property is merely one among many on their shortlist, which is crucial information when deciding whether to proceed with a particular offer.

A recent example of this trend can be seen in Chestnut Road, Oldbury (watch here), where a property received nine offers that ultimately grew considerably over the initial asking price. This situation underscores the benefit for sellers in having multiple, well-considered offers on the table. It also provides a backup plan in case the most attractive bid falls through (doesn't proceed) for any reason.

For buyers, the competitive nature of best and final offers means that careful consideration and prompt action are essential. They must be prepared to commit quickly and decisively, knowing that delays could mean losing out on the property they desire.

If you have any further questions about best and final offers or require personalised advice on how to approach the current market—whether as a buyer or a vendor—please feel free to reach out. Our team is here to help you navigate these dynamic times and make the best decision for your property journey.