When selling a property in Scotland, you are under no obligation to accept the highest offer, or indeed any offer. Here is what to weigh up before you decide to accept an offer or not.

Where Is the Buyer in the Chain?

A buyer who needs to sell their own home before they can buy yours is part of a chain, and every link adds risk. It is worth finding out:

• Whether the buyer's own property is already on the market
• Whether it is under offer and, if so, whether missives on that sale have been concluded
• Whether their buyer is, in turn, relying on a sale of their own

A buyer whose own sale has concluded is in a strong position. One who has not yet put their home on the market is in a much weaker one, however attractive their figure. Their offer may also be made "subject to sale", meaning it only goes ahead if they sell first. It is one reason buyers who have already sold are so often preferred by sellers.

Is the Cash Buyer Really a Cash Buyer?

Cash buyers are often seen as the gold standard, and with good reason: no lender, no lender's valuation and no waiting for a mortgage offer.

It is worth checking what "cash" actually means. For some buyers, the money is in the bank. For others, it will come from the sale of another property, which puts them straight back into a chain, or from investments or a pension lump sum that still has to be released. 

Anti-money laundering rules require estate agents and solicitors to verify who they are dealing with and, where appropriate, where the money is coming from, so a genuine cash buyer should expect to show evidence of their funds at an early stage.

Mortgage Position and the Valuation Gap

Most buyers rely on a mortgage, and there is a big difference between a mortgage in principle, a lender's initial indication of what it may lend, and a formal mortgage offer, which only follows once the lender has assessed the buyer in full and valued the property.

This is where the headline price can become a problem. Lenders usually base their lending on the valuation of the property rather than the price offered for it. Because sellers in Scotland must provide a Home Report, which includes a valuation, buyers know that figure before they offer. If a buyer offers well above it, the lender will not normally lend on the difference, and the buyer has to make up the shortfall from their own funds.

From a seller's perspective, if a buyer has stretched to secure your home it is worth knowing whether they can cover the gap, or whether they might seek to renegotiate once the lender's valuation is in.

Does the Date of Entry Work for You?

The date of entry is the day the price is paid and the keys change hands. An offer that looks better on paper but proposes a date that is months away, or one that does not line up with the purchase of your next home, could leave you arranging bridging finance, juggling two moves or covering the running costs of an empty house. Equally, a buyer who can be flexible about timing may be offering you something worth more than the difference in price.

Accepting an Offer Is Not the Same as Selling

When you accept an offer, your solicitor issues what is known as a qualified acceptance to the purchaser via their solicitor. The two solicitors then agree the final terms of the contract through an exchange of formal letters called missives. The bargain only becomes legally binding once the missives are concluded.

Until that point, either side can generally walk away without penalty. If your buyer withdraws several weeks in, you could find yourself back on the market, possibly in a quieter season and having lost the home you planned to buy. So the question to ask of every offer is not just "how much?" but "how likely is this to reach conclusion of missives, and how quickly?"

Read the Conditions Carefully

Most Scottish offers are based on a standard set of clauses, with extra conditions added to suit the buyer. Some are routine. Others give the buyer room to delay or withdraw, such as conditions relating to:

• The sale of the buyer's own property
• The buyer obtaining a satisfactory mortgage offer
• A further survey or specialist report
• Planning permission, building warrants or completion certificates for past alterations
• The inclusion of particular items, such as furniture, carpets or appliances

Each condition is a potential delay or a possible exit route. Your solicitor will review every offer and can often negotiate to have conditions removed, or limited to a short timescale, before you commit.

Weighing It All Up

Choosing between offers means balancing price against certainty, timing and risk. At Paris Steele, our Property Team builds up a picture of each buyer's position as interest comes in, and a solicitor looks closely at the terms of every offer, which is discussed with you before you make any decision. We will set out the strengths and risks of each offer clearly, but the decision is always yours.

If you are thinking of selling your property, or you have offers on the table and are not sure which way to go, we would be happy to help. Call our North Berwick Property Shop on 01620 497497, our North Berwick office on 01620 892138 or our Dunbar office on 01368 862746, or get in touch online.

This article is provided for general information purposes only and is not intended to constitute legal advice. The information contained in this article is accurate to the best of our knowledge as at the date of publication. As laws, regulations, guidance, and other relevant information may change over time, the content of this article may no longer reflect the current position.

The information contained herein may not apply to your specific circumstances and should not be relied upon as a substitute for professional legal advice.

If you require advice about your own situation, we recommend that you seek advice from a qualified solicitor. If you would like to discuss your circumstances or find out how we may be able to assist, please do not hesitate to contact our team for advice tailored to your individual needs.