House buying: how much do you pay?

[MerryInthechelseahotel]

I'm about to put an offer on a house that is advertised as offers over (Scotland) £300,000. The seller has been in the house for two years and paid six thousand less. It's been on the market for 5 weeks. I have no idea what to bid! I hear it's best to offer way under the asking price but how do you know how much? I've not much idea what I'm doing! I've got an offer on my house.

Standard practice is to offer 20% less than the asking price initially and to settle for 10% less eventually

Out of interest- he's looking to make a 6k profit - what profit are you making on your house sale?

I think Scotland works differently to the rest of the UK, with the offers over system meaning that they actually expect offers over - but I think it depends on the area. When we looked at Edinburgh, I read a number of forums that suggested it was usually 10-15% over in that area.
Are you selling and buying in the same area? If so, what percentage over/under did you accept? Might be a place to start?

Is it going to closing date or are you just putting an early offer in? If early offer, go in as low as you like and then you can increase.

Eh? Offers over means offers over. Ask for the home report which will have the valuation. They will be looking for at least the home report value, if it’s a competitive area, they will be looking for more.

I hear it doesn't always mean offers over though zsaz

In Scotland offers over means offers over! What does the home report say? I agree with above, they’ll be looking for that as a minimum. In some areas of Glasgow you’d expect at least 10%+ on top of that.

Offer what you think the house is worth, but give yourself some room to negotiate. Study your local housing market.

Offering 20% less and expecting to get it 10% under list price where I am will have not see you moving house very quickly. If anything your going to get vendors/EA's backs up and not be taken seriously.

I hear it doesn't always mean offers over though zsaz

Unless things have changed big time in Scotland offers over means offers over. If they're not expecting offers over they advertise it as OIRO (offers in the region of) or Fixed Price. Ask your solicitor what they think offers over means.

We’re looking at Scottish houses to buy too. And the EAs have said to us to go by the home report valuation. Do not get into a bidding war. The house we want says offers over £375.000 and we know the owner wants £400.000.

Yes it’s different in Scotland.

Regardless of the what the system is, offer what you think the house is worth and not more than you can afford to pay.

As an aside I'm in England and when we sold our house last year the estate agent showed us the form they completed for their own systems which stated "valued at £325,000 / marketed at £350,000" ie they planned that offers would be under. Seeing it on paper made me more confident about making lower offers when we bought.

It completely depends on where in Scotland. Can you advise rough location? If North East - things have dramatically changed since the oil and gas downturn and you can certainly offer under on ‘offers over’. If you are buying in Edinburgh - you need to be offering over. Most importantly - offer what the property is worth to you.

Are you moving from England? I’m wondering how you’ve accepted an offer on yours without understanding how it works?

It’s an interesting one and one your solicitor might be able to help with. We have cheekily offered under on both fixed price and ‘overs over’ houses. Both times were based on the areas, current selling rates, notes of interest and the likelihood of the value increasing further.

Generally, offers over means exactly that in Scotland. However if property has been on the market for ages there may be other opportunities. I’ve had it both ways - my first home was purchased at about 10% under the OO price. We then sold it 5 years later at 15% over. The market had changed significantly in that time.

Do you have a Scottish solicitor? They should be able to advise.

I live in Scotland and recently bought a house for 8% under the "offers over" asking price. You're 100% right op.

It really depends on area. We live in a popular location with excellent schools and the house was marketed offers over an amount approximately 10% under the Home Report value (can't remember price exactly) but it went to a close date within a week of being advertised and we paid 10% over the home report value again (so 20% over what it had been advertised at in the first place).

It pays to do research, watch houses coming up in the area you like, get the home reports if you can and then check the sold price once it has gone through. If you dont have time, your solicitor should be able to guide you.