Closing Date - Scotland

extravirginoliveoil · 23/06/2021 13:16

@Guineapiggiesmalls

We found our perfect house, plenty of space and within our preferred catchment. We put an offer in of 7% over home report yesterday, and today were told that there’s been another ‘similar’ offer and it’s going to closing date.

Although we can afford a bit more (probably to 10%), I’m loathe to pay more than it’s worth.

Has anyone offered in closing date in Scotland and can offer me any advice or words of wisdom? I just don’t know what to do!

Closing dates are happing more frequently now in Scotland.

All you can do it give it your best offer and keep your fingers crossed. Are you in a good position? Have you sold or are you in rented? If you've still to sell that may go against you. It's not always the highest offer that is accepted at closing. A better placed client may be preferable. Example being on be offer at £260k but subject to a sale and mortgage may be rejected in favour of a £250k offer when the buyer is cash or has already sold or in rented.

It all depends on the seller.

extravirginoliveoil · 23/06/2021 13:18

@Guineapiggiesmalls

We found our perfect house, plenty of space and within our preferred catchment. We put an offer in of 7% over home report yesterday, and today were told that there’s been another ‘similar’ offer and it’s going to closing date.

Although we can afford a bit more (probably to 10%), I’m loathe to pay more than it’s worth.

Has anyone offered in closing date in Scotland and can offer me any advice or words of wisdom? I just don’t know what to do!

Also you are buying in a sellers market which means a lot of good property is selling at over HR valuation just now. Some properties substantially so.

emmathedilemma · 23/06/2021 13:28

I would expect to be paying at least 10% over the home report valuation in the current market. In some areas things are going to 20% or even more. If it's your dream home I think you throw everything you can at it (within reason!). Also make sure you have all your ducks in a row re. mortgage, sale of previous property, anything that makes you a more attractive buyer than someone with a similar offer.

ApolloandDaphne · 23/06/2021 13:34

It sounds like you will need to offer more if you really want it.

museumum · 23/06/2021 14:21

All my purchases have gone to closing. Your solicitor should offer the best advice here as they get the info on recent sales before it’s public.

Where are you?
If edinburgh you’re going to need at least 10% over HR. Maybe a lot more

EmmaC78 · 23/06/2021 14:24

Houses only area are doing up to 25% over HR price. I think the market is likely to stay the way it is for the next while so if you like the house and can afford the 10% over I would offer that. At least then you know you gave it your best shot.

lastqueenofscotland · 23/06/2021 14:25

If you’re in Edinburgh or Glasgow 10% over was pretty normal before the current boom.

Clydie89 · 23/06/2021 14:28

Sounds like you need to go higher, this is your one and only chance to get the house so think of it that way and what you are willing to pay /lose out on. As others have said, be upfront about your position too. We declined a substantially higher offer because we needed someone who could move quickly so we got the house we wanted. Some offers didn't include info about whether they'd already sold, had mortgage in principle etc.

A LLL tip that's always worked for us is to offer an extra 250/500 on the end to give you an edge. Made all the difference on our last 2 houses.

Grumpycatsmum · 23/06/2021 16:22

We lost out on at least 3 offers recently, in and around popular areas of Glasgow. We offered, about 8% over. Our dream house went for at least 18% over. But they all had more than 6 offers

NoYOUbekind · 23/06/2021 16:34

Exactly the same message will be going to the other offerers, so they'll be having exactly the same conversations as you are. And if they want it enough, they'll find the other 3%. You need absolute balls of steel housebuying in Scotland at the moment!

Thoughts: if it's really not worth it (to you) then it's not worth it. Don't pay more than you want to. Also you have to be careful wrt your mortgage - if you pay loads more over HR value your lender may not give you it.

But you have to balance that against catchment, space, what's happening in the market, how long you think you'll wait for another property, etc etc.

As a pp says though, if you have other advantages (like your house is sold) then make sure to reflect that in your offer - it's not always just about money.

17to35 · 23/06/2021 16:35

Recent experience in Bearsden:
offers over £175,000
home report £195,000
our offer: £265,000
we were 4th

LoopyGremlin · 23/06/2021 16:45

The only thing you can do is see what you can afford and would be happy paying and offer that. You might get if and you might not. Round about here- desirable part of Edinburgh- houses are going for anywhere between 15 and 40% over.

Grumpycatsmum · 23/06/2021 16:53

I should add that we did finally get a house (which we love) at about 5% over by making an offer the day we saw it. We didn't have to sell, had a mortgage in principle and said we would not bid at closing. We knew it was above sellers expectations too and he had a place to move to. it is quite out of the way though so not crazy popular like some of the places we saw in Milngavie for example.
Remember your mortgage won't over the amount over HR so that needs to be cash and will affect the amount you can borrow. If you love the house and can afford to lose the extra if you ever had to sell at less then I would say go for it.

LadyBugg · 23/06/2021 16:55

How popular is the area you are buying in? A friend recently put 26% over HR and there were 6 better offer than hers, 15 offers in total.

Another friend missed out and she later found that the winning offer was 29% over HR.

First example, the area was more popular that the second example. Goodness knows what it actually went for! And these are typical of stories I'm hearing at the moment. 30% over HR is almost standard around here.

Original poster

Guineapiggiesmalls · 29/06/2021 23:48

Thanks for all the replies, don’t know how I missed them…

It’s a wildly popular area, so I’m starting to think we’re out the running but 30% over HR would add a hefty £150k, which just seems ludicrous. Do people really have this sort of cash sitting sitting about separate from their deposit?!

Anyway, we decided to offer what we could comfortably afford and will see what happens fingers crossed

OP posts:

user1487194234 · 30/06/2021 05:16

If it's in a wildly popular area it is very likely to go for 20% + over Home report value

mrstea301 · 30/06/2021 05:34

It's a crazy market just now, I'm in Glasgow and have heard of flats going for £100k over the home report value. My friend recently moved house but they managed to view the property before it officially went on the market and agreed a price with the seller pretty much straight away, so it never actually hit the open market. They were really lucky as had gone through at least 8 closing dates up til then.

The best thing to do is offer what you think it's worth / what you can afford. I'd be curious to know how many house buyers will be happy in a years time with what they have paid for their property.

Seeingadistance · 30/06/2021 10:20

@17to35

Recent experience in Bearsden: offers over £175,000 home report £195,000 our offer: £265,000 we were 4th

Fuck me!

This bubble is going to burst at some point though.

Original poster

Guineapiggiesmalls · 30/06/2021 10:24

@17to35

That really is outrageous. We’re in Bearsden, and have found that so many houses are being bought by developers (who are paying cash too).

We also half-heartedly offered on something in the south side, o/o £345, HR £385 which sold for £470 . Nuts.

OP posts:

Sunshinewithstars · 05/07/2021 20:34

We've lost out on four closings recently....last one we offered over 20% above HR....came second....was gutted.we gave it everything we had.

We now have to be out our home soon (were told no one would touch us if our house wasn't sold plus we needed to see how much money we had to play with) and have nowhere to go with an 8 month baby 😟

We don't understand how so many people have so much cash, esp with land tax on top too. Feels impossible to buy right now, we can't even talk to owners as it seems to be all agents doing the viewings 😒