Scottish buying/selling system(14 Posts)
Can anyone advise me in simple terms how it works please?
Elderly aunt downsizing and I see that similar properties are on the market at a fixed price but hers has gone on at what I consider a bargain price but with 'offers over'.
The agent has told her that it should fetch very much more (it's a lovely flat in a very desirable area with lots of original features) but I'm in England where an 'offers over' listing would suggest that the seller would take the asking price or very slightly above. What happens in Scotland? Thanks
Scotland normally list with offers over price that is under valuation. The seller provides the survey so you know the valuation before you put it on the market. Depending on local market conditions you may get more than valuation price.
Some people do fixed price but not that common. Normally if looking for a quick sale. If more than one interested party then a closing date will be set and sealed bids submitted.
The "offers over" amount varies massively by area too - as far as I can tell from people I know who are buying/selling at the moment, desirable properties in Edinburgh (period flats in Morningside/Marchmont/New Town, family houses in Orchard Brae/Craigleith, etc) seem to be getting 20%+ over their offers over. And that's when the offers over has been set pretty close to the home report value!
Other areas will be very different so it depends.
Where is it
That is the key
In popular areas property is going way over
Ask king price doesn't mean much it's the Home report value that counts
Fixed price property is quite rare in Scotland, particularly as an opening price
Can make purchasers think there is a problem or seller desperate to sell
Fixed price is often put on properties which have been on the market for a while. My estate agent brother defines it as "help us out here". In other words the seller may take a little less. As others have said "offers over" is the most common and depending on area and desirability properties may fetch considerably more.
Fixed price usually means "first come, first served" and "I want to sell very quickly" (the property might also have been on a market for a while and there have been no offers over an acceptable amount, or no offers at all). "Offers over" could mean... anything. You could offer less but chances are the seller will probably not accept it (although he/she might change his/her mind if no one offers more). But if there is more interest in the property things will go to sealed bids on a closing date and, if it's a very desirable location, the "over" could be 20-25-30% over. Or just a couple of thousand pounds. It's all about the location, I am afraid.
It is a period tenement flat with garden in Glasgow. Lovely area. Marble hallway. Original glass in the doors, original servants bells in the rooms etc.
Thanks for the info: certainly makes more sense if the fixed price ones have been on the market a while or are newbuild.
Which area of Glasgow? The West End & parts of Southside (around Shawlands/Strathbungo) go for considerably more than the home report value, usually at a closing date, competing blind against other bidders. Other areas are less in demand & perhaps there is scope for negotiation.
Offers need to be put in by a solicitor, and are legally binding at a much earlier stage than England. There's very little gazumping & pulling out, or being "in a chain".
Depends on the location and current market. When I was first looking things were being put on at offers over the valuation and going for 10-20% more. Nightmare for a first time buyer as you needed deposit plus anything over the valuation so another 10-20%. The market has totally crashed around us and things are now going for the offers price or less.
We've just sold in Scotland under offers over. We had quite a few viewers who said they'd lost out on houses at closing date recently, and we lost out on one too.
To give you an idea, we saw a house at offers over 235k, valued at 250k, we bid 295k and lost it.
Our house sold for 12.8% over the OO price, with 3 sealed bids. OO price was 15k less than the valuation.
This is in commuter belt basically - pretty close to Glasgow. It's more competitive the closer you are, obviously!
It sounds like the EAs expect this property to be very popular, especially if it's orginal features are present.
I think you'll be pleasantly surprised.
The offers over price is a bit irrelevant in Scotland these days. What’s important is the valuation in the home report. In desirable areas you would expect to get a bit over the home report.
In desirable areas a low offers over price is used to drum up lots of interest.
Thanks all. I think you are right and I'm worrying unnecessarily. The valuation is quite a bit higher than the offers over price, but it looks like she'll be fine as there has been a lot of interest already. It is West End, red stone, facing a bowling green rather than another tenement so really bright and light. It has modern but unfashionable bathroom and kitchen and lots of potential to put ones own stamp on it yet retain the original charm . If it wasn't 100s of miles away I'd live in it myself!
We were advised when selling a tenement in a good location to expect £10-25k over HR I expect this number goes up depending on size of flat etc... Offers over price is rarely anywhere near the final purchase price unless it's not in good condition which doesn't sound like is the case. Good luck to your aunt!
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