How to buy property in Scotland Glasgow

[fromage4me]

Hello!
I'm new to mumsnet, only just discovered it recently after having first baby last Oct. Happy discovery!

Partner, baby, and I are moving from Belfast to Glasgow this summer as he's landed a new job there. We don't know the city very well but have visited once, and want to live in the West End. When we first started looking for 3 bed flats, we were initially happy and optimistic... but quickly realised the asking prices are completely irrelevant! After learning about home reports, valuations, closing dates, etc. we found a property we loved, and on the advice of our solicitor, made a bid for 13% over HR value. We were shocked to come in 9th out of 12 offers. We tried again a week later, bidding 22% over HR value. After a moment of hope when on closing date the seller asked us if we had ever been furloughed (we have not, both full time employed; but I'm currently in mat leave), we were rejected again. Our offer was 2nd out of 16!

We are now a little discouraged. We are fortunate enough to have a very large deposit, and are not in a chain (first time buyers). Here's my question... what is better:

1. continue offering 15%-20% above HR value on properties in West End and hope that we get lucky on closing dates by being highest bidder

2. avoid putting offers in on closing dates entirely, and try to offer lower (exact HR value or £5k above..) with a 24h time limit on the offer

Is it likely that we could be successful going the second route? We are starting to get a bit concerned about time - I think we would need to secure a property by the end of May in order to be able to move in July. With the first option, I'm worried we won't secure one in time.

I have heard of people contacting sellers as soon as property hits market, and offering HR value or £5k above, and being successful.. but I wonder if this is rare? It seems more efficient to bid straight away, and find out immediately, and then move on to the next property if rejected.

Also not sure if solicitors and estate agents try to discourage the 2nd option...

Any advice much appreciated!!

Haven't bought a property in a long time but I do live in Glasgow. I can't imagine anyone owning a property in the West end taking such a low offer. Don't understand why they would even be tempted really. For the speed of selling? I think the prospect of more money would always win out, although I suppose it's worth a try. Good luck!

A lower offer is not going to work. House prices are nuts in Glasgow just now and everything seems to be selling very quickly. You're just going to have to keep putting in offers at the highest level you can I'm afraid.

Thanks for the reply!
Yes I think it wouldn't be the sellers first choice, but if the seller wanted to sell quickly, or if the property has been on the market for 3-4 weeks with no closing date set (presumably not enough interest?) then they might consider it?

Also if a property has been on long enough for the asking price to be reduced, then they might also consider an HR value offer..

I’m just outside Glasgow and the housing market is very buoyant just now. We are in the process of buying - we viewed it on Monday, put in an offer on Tuesday, went to closing date on Friday and had offer accepted. Things are moving very fast! We offered 15% over HR.

I don’t think option two would be a goer- why would they accept a low offer when they can go to closing date and get the best offer?

I doubt you'd be successful with your first option at dead on or just over HR value but I guess anything is possible! Maybe if you offered a bit closer to what you think it might actually go for and emphasize that you are in a position to move quickly with no hold ups that might motivate some who may be wary of chains, delays etc.

Yes it's a different story if the property has been on market for a while or reduced, definitely. Then you could certainly try at HR value or below. They can only say no!

Hmm it seems like we may have to just accept that it will take longer and be more expensive than we had anticipated..

A question though - do properties always eventually go to closing date? What would be considered a "long time" for a property to be available without a closing date set?

Also, does an early offer have to be a formal written offer made up by the solicitor ? Or can our solicitor pass on an informal offer that is up to negotiation?

Afternoon, I'm based in Stirling and have friends in Glasgow. As @Glitterkitten24 has said the housing market is very buoyant now. I would say at the moment three-four weeks would be a long time for a property to be available without a closing date set. I have friends looking to purchase in Glasgow (also West End) Stirling and Bridge of Allan and in all cases properties are going to a close within 5 days of going on the market with a 10 - 20% overvaluation.

I would encourage your solicitor to make it clear that you are chain-free within your offer. I presume you also have your mortgage in principle? I have known two people who were the second-highest bidders but got the property as they were chain-free and financially ready.

I really cant see you being successful with the second approach... it's common knowledge that prices are going well overvaluation right now in the popular central belt areas of Scotland. Sadly it's a case of get lucky and keep offering. I know how disheartening it is - within my friendship group it took one friend 6 offers before acceptance and another 5. It's brutal right now!

Does it need to be by hyndland /Patrick/finneston? What about Bearsden, Milngavie or bishopbriggs?

We offered on 14 houses before we had an offer accepted on our house. It was so frustrating.

Check listings for fixed price houses (rare but it does happen) register with every estate agent - town and country, rettie, corum, slater hogg and howison, etc.

You can be a bit cheeky and ask the seller what they're looking for and offer that.

Be prepared to go 10-25% over the home report.

You only need 2 notes of interest to go to a closing date.

We're buying at the moment, and it has been a nightmare. Every single house we've viewed has gone to closing and has gone around 20% over home report price, and we're buying in NE Glasgow (near Moodiesburn). We've been really lucky with our house as we got it for only 9% over home report report, but you will need to be prepared to go much higher than that to get the house you want, especially if it's the West End you are looking to buy in.
You might want to try expanding your search area, and look at maybe the Southside, or parts of North/South Lanarkshire or Renfrewshire/East Renfrewshire. You can get much more for your money in these areas, and still have great transport links to the city.

Are you offering without viewing?
This is utter madness. i viewed a WE flat recently for someone else. It seemed a bit too good to be true. It was....it was on a slope, sliding down Gardner Street.
Move into rented. Scottish laws are better for short term renters. Then look when you are here.
Option 2 won't work other than very specific circumstances.

Unfortunately we care most about the location, and partner isn't willing to compromise on it. He wants Hyndland/ Dowanhill / Hillhead / Finnieston / Woodlands areas. We currently live in Belfast and have to drive everywhere and hate it. A walkable neighbourhood, to be able to walk our son to nursery / school / shops etc, is the sort of lifestyle we want. And to feel safe doing it!

We will more likely go for a smaller flat in the same area than a larger flat outside those areas.

It seems to me like we are in a good position, and there are two 3 bed flats that look great but they are at the upper end of our budget. The HR value is really almost the max we could offer. One has been on the market for 3.5 weeks, and the other was reduced 10 days ago. I think we will just take a shot and put in an offer and hope for the best. We won't be terribly disappointed if we don't get it, because I realise it's a long shot.

But what I'm confused about is whether we are supposed to do this through the solicitor or directly with the estate agents? If we are offering something verbal along the lines of ~ HR value + £5-10k, take it or leave it, with 24h to decide.. does the solicitor have to be the one to pass this on to them? We have a mortgage in principle and can provide solicitor with proof of funds for large deposit (70%), but if we went through the estate agents would they want proof of this or would they take it at our word..

Also we went to glasgow 2w ago to view properties and that was when we made the previous 2 offers. But we might need to go back for a quick trip to view again. It's difficult in covid times. We have a friend who is willing to view for us

Traditionally offers are made via a solicitor. I think this is because verbal offers used to have validity in Scotland so your word was literally your bond.
If you make a verbal offer before a closing date in a hot market, there is a worry that this would be used as leverage to up the offers of other buyers. You have shown your hand in the poker game!
Good luck.

Offers are made through your solicitor. You can make a verbal offer through the EA to gauge whether or not your offer would be accepted, but it won't be taken seriously until it comes in writing from your solicitor

With flats in Glasgow you might want to check out what the factor situation & block buildings insurance policy is for them. I don't think many factors have a stellar reputation but you would probably still rather the building had one to coordinate communal works with other owners as it can become a bit of a nightmare when they're unfactored. You can sometimes also get an idea of monthly costs but often sellers are reluctant to disclose.

@suggestionsplease1

With flats in Glasgow you might want to check out what the factor situation & block buildings insurance policy is for them. I don't think many factors have a stellar reputation but you would probably still rather the building had one to coordinate communal works with other owners as it can become a bit of a nightmare when they're unfactored. You can sometimes also get an idea of monthly costs but often sellers are reluctant to disclose.

Good morning! Interesting point about the factoring - I was under the impression the seller had to disclose this information in the HR questionnaire. Is it common for them to exclude or lie about factoring fees and building insurance fees?

If those flats haven't sold in the west end and have even been reduced then that likely means there's an issue. You would be nuts to buy them without viewing.

And if you're looking at flats where the HR is the max you can afford then you're looking above your budget. Have you looked at shawlands?

I'd agree re: Southside around Shawlands/Strathbungo- exactly the same type of flats, with brilliant amenities locally, just as nice an area - but significantly cheaper.

@fromage4me I had a very unfortunate situation about 10 years ago when the seller did not disclose fully accurate information, had put down that block buildings insurance policy was in place through factor and this was not accurate - only discovered after the purchase went through. This was a building that ended up being demolished due to subsidence, so it was all a bit of a nightmare!

I wasn't able to make much headway with this legally after the event unfortunately, so I think it pays to just do your homework - maybe check independently with the factor that they are indeed the factor, that buildings insurance is in place. I did try to do this at the time, but they all kept quiet and I just assumed it was a GDPR thing that they couldn't reveal and went ahead with the purchase anyway. My mistake! Your solicitor should probably be establishing this anyway. I didn't pursue it with mine as I heard she had been diagnosed with a terminal illness and felt too bad about adding this on top.

I think my situation was exceptionally unusual however. But yes, as PP pointed out, if you're looking at ones not selling yet there will likely be reasons why, so do your homework!

I also agree about the Southside. I've never really understood the draw of the West End tbh

I agree about the south side, shawlands and Battlefield would be my first choice over the West End. But the prices are crazy there too at the moment, particularly Queens Park.