On hearing the term 'best and final offer' you might well feel a little disheartened, as though your chances of being the successful bidder on the property you have fallen in love with have suddenly diminished.
However, when buying a house, there is no reason why this method of submitting offers should stand in the way of you and your dream home.
Our expert-led guide explains everything you need to know about best and final offers, from why sellers might choose to take this route, to how to navigate the process and, ultimately, end up as the successful bidder.
In some cases it might be stated from the get-go that a property is being sold in this way, while in other cases you won't discover that sellers are inviting best and final offers until you are viewing a house, or come to put in an offer.
"The decision to move to a 'best and final offer' (or 'sealed bid') scenario is guided by the seller, and occurs when there is significant interest in a property and multiple offers are already on the table,' explains Spencer Lawrence, sales and lettings director at Paramount Properties.
"At the seller's request, their estate agent will ask for interested parties’ offers by a certain date, giving all potential buyers a fair opportunity to consider and submit their best offer."
This a process those renovating a house are likely to be familiar with, as properties in need of modernisation are often in high demand and are commonly sold this way.
"In the property market, 'best and final offers' often come about in competitive scenarios where multiple buyers are interested in a property," adds Liam Gretton, founder of estate agents Liam Gretton. "It's a sales tactic designed to encourage buyers to submit their highest bid while also creating a sense of urgency and finality."
"The seller invites all interested parties to submit their highest bid, along with any conditions, by a set deadline," further explains Robin Edwards, property consultant at Curetons Property Finders. "This approach isn’t purely about the offer price; it also considers factors like the buyer’s flexibility, financial readiness and overall appeal as a purchaser."
Spencer Lawrence
Spencer is sales and letting director at Paramount Properties, which was founded in 1989. The company is based in West Hampstead and sells property across the North West market, and lets property all over London.
Why do sellers choose this route?
As well as familiarising yourself with a house viewing checklist, it can can be useful, before submitting your offer, to understand why a seller or estate agent may choose to invite offers in this way.
"Best and final offers can help a seller decide quickly which offer to accept," explains Spencer Lawrence. "They can easily compare the value of the offers as well as individual buying positions, such as whether they are first-time buyers, have sold their property already, are in a chain, etc. This method is used to tie-up a sale quickly and efficiently, giving both sellers and buyers the opportunity to move forward with a sale price they are happy with."
Liam Gretton has some more words of wisdom here.
"For sellers, this process helps streamline decision-making, ensuring they receive the best deal while considering the buyer's financial position and commitment, however it is also important to highlight that the highest offer may not be the best buyer," points out Liam. "The phrase 'best and final' can put undue pressure on buyers, making the process unnecessarily stressful."
Liam Gretton
As a leading independent Wirral Estate Agent, the brand has been built on the back of a successful track record of delivering high-quality bespoke services and results to Wirral home movers. His first-class personal service ensures clients have the peace of mind that their interests are at the heart of everything the company does.
How do you submit your best and final offer?
Once you find out a property you are interested in is being sold in this way, how should you proceed?
"Always submit your offer verbally to the agent first, then back it up in writing," advises Liam Gretton. "Clearly state your offer amount and reiterate your buying position (e.g., first-time buyer, chain-free, and so on.) Provide context for your offer, such as why the property is important to you or how you’ve arrived at your offer.
"Show the agent and seller you’re serious by attaching all necessary documents, including a copy of your mortgage agreement in principle, proof of deposit (e.g. a PDF from your bank statement), ID documents and contact details for your solicitor and mortgage adviser," adds Liam. "This proactive approach not only builds confidence – it also saves the seller and agent time, ultimately making you a more attractive and serious buyer."
How to decide how much your best and final offer is
If you find yourself in this situation it can be really difficult to know what kind of figure to go in with. You also need to bear in mind the costs of buying a house to ensure you can actually afford what you are offering.
"Agents will not disclose information about other offers, so bidders must be guided by their own affordability, what they are comfortable offering and, ultimately, what the home is worth to them," explains Spencer Lawrence.
"The key to navigating this process is shifting the mindset from stress to clarity," advises Liam Gretton. "Buyers should ask themselves: What is my 'no regret' offer? This means deciding on a figure where, if the property sells for just slightly more, they won’t feel regret for not offering higher. It’s about setting a confident limit based on personal value and affordability."
How to be the successful bidder in a best and final offer scenario
Don't let panic take over here – while it might be tempting to lose your head, there are some keys to 'winning' in the case of best and final offers. It's especially important if you are aiming to renovate for profit, as you don't want to go in with too high a bid.
"To increase your chances of success, it is important to go to the maximum price you are comfortable with," begins Spencer Lawrence. "While the money you offer is incredibly important, sellers will also consider how easy it is for you to proceed with the sale. Sellers don't always accept the highest offer, they may instead decide to go with the person in the best position to move forward, so it is vital to get organised ahead of time.
"We recommend making sure your mortgage is agreed in principle and instructing a solicitor as early as possible," continues Spencer. "If you are in a chain, make sure to keep the agent selling your property informed of your plans so they know who to communicate with, and if you are a cash buyer, make sure you have the funds readily available for a fast and smooth purchase."
"Remember, the highest offer doesn’t always win," highlights Liam Gretton. "I recently had a sale where the sellers agreed to an offer £20,000 below the highest. Often, sellers prioritise buyers who are ready to move quickly or have fewer complications. If you’re chain-free, flexible with timelines, or have cash funds, make this clear. It could tip the scales in your favour."
"Sometimes adding a personal touch, like a short, heartfelt letter explaining why you love the property can help establish an emotional connection with the seller," adds Robin Edwards. "However, professionalism and clarity are equally important, so ensure your offer is well-documented, polite and respectful of the seller’s deadline.
"To increase your chances of success, focus on presenting yourself as an organised and reliable buyer," continues Robin. "Ensure your finances are in order, respond quickly to requests or questions, and demonstrate a clear commitment to the purchase. While the process can feel high-pressure, a strategic and well-prepared approach can position you as the most attractive buyer."
Robin Edwards
Robin has nearly 20 years experience across the prime and super prime Central London property markets working for some of the capital’s biggest and most respected companies within the industry. He has advised on the sale, purchase and rent of over £1bn worth of residential property over his career. His passion, insight and long terms relationships and contacts give him an unrivalled knowledge of the London property market.
FAQs
Can you submit another offer if you are unsuccessful?
If you find that you are not the 'chosen one' and that the seller has decided to go with someone else's offer, what are your options?
You could contact the estate agents and offer a higher price. There is nothing, legally, to stop the seller changing their mind, even after accepting an offer. That said, it pays to keep a cool head here.
"While it’s tempting to allow emotions take over and offer above and beyond, stay grounded," advises Liam Gretton. "That balance between emotional attachment and financial prudence is vital."
What happens if I change my mind after making a best and final offer?
You are not legally bound by your offer until contracts are exchanged. If you pull out, the sellers will, in most cases, accept the next best offer that was submitted.
"Once an offer is accepted the sale proceeds through the usual legal checks and formalities until contracts are exchanged," adds Robin Edwards.
If you are searching for land on which to build your dream home or a renovation project take a look at Plotfinder.net to find all the latest opportunities.
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Natasha was Homebuilding & Renovating’s Associate Content Editor and was a member of the Homebuilding team for over two decades. In her role on Homebuilding & Renovating she imparted her knowledge on a wide range of renovation topics, from window condensation to renovating bathrooms, to removing walls and adding an extension. She continues to write for Homebuilding on these topics, and more. An experienced journalist and renovation expert, she also writes for a number of other homes titles, including Homes & Gardens and Ideal Homes. Over the years Natasha has renovated and carried out a side extension to a Victorian terrace. She is currently living in the rural Edwardian cottage she renovated and extended on a largely DIY basis, living on site for the duration of the project.
