Can I Accept an Offer and Later Change My Mind or Accept a Higher Offer?

The Basics: When Is an Offer Legally Binding?

In England and Wales, an accepted offer is not legally binding until contracts are exchanged. Until then, either party can pull out without legal penalties.

• Pre-exchange: Verbal acceptance or confirmation by email does not create a binding contract. You're still legally free to change your mind.
• Post-exchange: Once contracts are exchanged, the agreement becomes legally binding. Withdrawing after this stage can result in legal action and financial penalties.

Scenario 1: You Accept an Offer, Then Change Your Mind

This happens more often than you might think. Perhaps your circumstances change, a family emergency arises, or you realise you're not ready to sell.

• Before exchange: You're legally entitled to withdraw. Clearly this could frustrate your buyer, but having a good relationship with your estate agent will be invaluable in navigating a potentially tricky situation.
• Be transparent: If you no longer want to sell, it's best to inform everyone promptly. If you're still open to selling later, your agent can pause or relist the property when you're ready.
• After exchange: Pulling out could lead to breach of contract and legal action from the buyer, who may be entitled to recover costs and losses.

Scenario 2: A Higher Offer Comes in After You've Accepted

This is one of the most common dilemmas - and one of the most controversial. You've agreed on a sale, but another buyer offers more money. Do you take it?

• Before exchange: You are legally allowed to accept a higher offer - this is often referred to as gazumping. While common in England and Wales, it's clearly a source of frustration for buyers. Discussing your options with your agent and making the right choice for you and your financial and personal situation should be paramount.
• Agent's role: Your estate agent is legally obliged to pass on all offers, even after you've accepted one. It's your choice whether to proceed with the higher offer.
• Ethical considerations: If you've made verbal commitments or the buyer has already spent money on surveys or solicitors, backing out may feel unfair, even if it's legal.
• After exchange: You cannot accept a higher offer. You're contractually tied to the buyer and must proceed with the sale unless they agree to withdraw.

Scenario 3: You Accept a Higher Offer, Then the New Buyer Pulls Out

One risk of gazumping is that the higher bidder could pull out later, leaving you back at square one, and potentially losing your original buyer. A goo agent should be ready to premarket your property no matter what circumstances have arisen to get your sale back on track as quickly as possible.

• Due diligence: Before accepting a new offer, ensure the buyer has a mortgage in principle and is financially prepared to move quickly.
• Communication: Keep your agent informed and request buyer details (e.g. chain status, timescales) to help minimise risk.
• Timing: If you're close to exchange with the first buyer, weigh up whether the additional offer is worth any potential delay or fallout.

Can You Accept a Higher Offer Without Telling the First Buyer?

Technically, yes - but it's not advised. Your estate agent should inform all parties involved, as acting without transparency could lead to complaints. Open, honest communication is crucial. After all, your original buyer may be prepared to increase their offer. Your agent should always seek to allow you to make the best decision for your circumstances.

What About in Scotland?

Property transactions work differently in Scotland. Once an offer is formally accepted in writing, it becomes legally binding much earlier. Gazumping is far less common and can carry serious legal consequences.

Tips for Sellers Facing a Higher Offer

• Act quickly: If you're going to consider a new offer, don't delay - contracts can move fast, and timing is everything.
• Be fair: Consider offering the original buyer a chance to match the higher offer - this gives you the best opportunity to make the right choice when selling your most important asset.
• Get advice: Speak to your solicitor and estate agent before making any decisions. They can help assess risk and advise on timelines.
• Think long-term: A better buyer may mean more than