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Original poster

Scottish property system

23 replies

gregssausageroll · 07/12/2010 20:28

Can anyone help?

We'd like to offer on a house. We've seen the home buyers report and done lots of comparisons with other similar property (the one we like needs gutted - new windows, re wiring, new kitchen, bathroom and complete redecoration/some replastering.

The valuation with the homebuyers report seems very high - only £7K of a differece between this one and the house next door which was sold in June 2010 which was move in condition/completely upgraded.

There is no way we could realistically do all the work for £7K so would go straight into negative equity.

We are considering offering £10K below the surveyors valuation to cover all of this work that needs done - please don't get me wrong, we're not flash and our sums are for basic works.

Any thoughts as to how this will be accepted?

OP posts:

snownutty · 07/12/2010 20:38

When was the valuation done? Was it a while ago? Has the house been on the market long? Is it on at a fixed price?

I'm not an expert but I don't think there's anything wrong going in low. Our estate agent said that offering below a fixed has happened more and more over the last couple of years. Never heard of before this slump. In Scotland anyway.

If the offers not accepted you can have a rethink.

You might get a bargain! Good luck!

Original poster

gregssausageroll · 07/12/2010 20:44

The valuation was on 11 November so only comign up to a month ago. Been on the market 2 weeks.

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lalalonglegs · 07/12/2010 20:45

To be honest, even #10k below sounds far too much for the work that needs doing. I'm afraid I don't know the Scottish system but there can be no harm in offering low, especially if, as snownutty says, it may have been on the market a while.

snownutty · 07/12/2010 20:51

A house is only worth what someone is willing to pay for it. Regardless of the surveyors valuation. I think the homework you've done should be enough to convince the estate agent that your offer is a valid one. They should know that anyway.

Original poster

gregssausageroll · 07/12/2010 20:51

So you think we should offer more or less than £10K below lala?

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lalalonglegs · 07/12/2010 20:56

I'd knock off more than 10k because the work that you say needs doing - and if it's in the homebuyer's report then I'm guessing it's obvious that it needs doing - would cost way more than 17k. I think you would be very lucky to get much change out of 40k for a family-sized house for all that work and you could easily spend a lot more.

Dylthan · 07/12/2010 20:57

Has a closing date been set?

Original poster

gregssausageroll · 07/12/2010 21:00

No closing date. We're the only viewer so far. We're in rented with mortgage ready to go and would want date of entry early January. Its a 2 bed semi. Pretty small so don't reckon on spending masses on it. It is a stop gap for 2-3 years only.

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AitchTwoOh · 07/12/2010 21:00

who did the survey and who are the estate agents? unfortunately there is a LOT of corruption with these reports, so it may be over-valued, but the problem will be if someone believes the valuation.

lal123 · 07/12/2010 21:01

Scottish system is no different from English system in that a house is only worth what someone will pay for it - don't get too concerned with the "offers over" thing. You've got nothing to lose by putting in a low offer. If it does go to a closing date don't be tempted to pay more than you think it is worth to you

Original poster

gregssausageroll · 07/12/2010 21:02

Reputable surveyors and estate agent/solicitors but I do know what you mean about believing valuations.

Lots of help here. Thank you very much.

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AitchTwoOh · 07/12/2010 21:05

no, who are they? the most reputable ones are disreputable. slater hogg, for example, owned by countrywide, who also own the valuers... corrupt much?

AitchTwoOh · 07/12/2010 21:06

what you need, basically, is an Evil Lawyer to advise you.

Original poster

gregssausageroll · 07/12/2010 21:09

DM Hall did the home buyers report.

Going to talk to my lawyer about it tomorrow.

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Dylthan · 07/12/2010 21:10

If no closing date is set then there's no harm in putting in a little offer. We did manage to get our house for about 10k under the survey valuation 3 years ago so it can happen in Scotland (although it's rare to go under asking price here) the only people that had any problem with it were the mortgage company somthing to do with money laundering I think.

There is no harm in putting the offer in they can only say no but you might just get lucky.

AitchTwoOh · 07/12/2010 21:34

dm hall are usually excellent, certainly in glasgow. don't over-value as i understand it.

TheCrackFox · 07/12/2010 21:44

Whereabouts in Scotland are you looking at?
It might be worth putting in a cheeky offer, it really depends how desperate they are to sell.

Original poster

gregssausageroll · 07/12/2010 21:45

Perthshire. Just outside on the border with Fife.

Going to try the lower offer and ask Solicitor to do a covering letter explaining why it is not at the valuation.

If it is a no then we will stick with rented for another 6 months. There just isn't anything else on the market.

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conkertree · 07/12/2010 21:48

Please come and put in a cheeky offer for our house. It's been on thearket for 2.5 years and we would be delighted to accept 10k below the valuation ( which was one more recently).

conkertree · 07/12/2010 21:49

Sorry iPad again - on the market, and done more recently.

eviscerateyourmemory · 07/12/2010 21:52

IME homebuyers reports do often seem to value on the high side.

Also, I have seen properties using a difference between the valuation and the asking price as a marketing strategy ie selling house for o/o 100,000 when it is valued at 110,000.

Your solicitor may be well placed to advise you about what sort of offer is likely to be acceptable in the local market. They can be wrong though - our current house was bought following an offer that our solicitor thought was too low.

beautyspot · 08/12/2010 02:52

If you are not embarrassed by your offer you are offering too much.

It's a buyers' market; house prices are dropping by the thousands every month. Go in very low and you can always negotiate.

Original poster

gregssausageroll · 08/12/2010 07:28

Will let you knnow how it goes over the next few days!

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