Home reports more than the asking price ?

[DaisyStiener]

First time buyer.
Totally clueless

I know it’s competitive at the moment so I’d be expecting to pay a good bit over the ASKING price
But I’m confused : a property I like , the asking is £149K over but the home report values it at £165k?
So what does that mean?

It depends where it is. In a popular location it will take an offer of 5-10% over the asking price. In summer it would have been 15%
Location is everything but you would be lucky/ looking at somewhere with problems to get it under the HR

@17to35
Thank you , it’s an ok area ?
I’m just surprised there’s like £15k difference?
Why not ask for £165k?

Are you in Scotland with the offers over system?

@Callisto1 yes, in Scotland

Where I am asking price about 10% under Home report value and Home report value at least 15% over price paid
Have a chat with local agents about what properties have gone for

@user1487194234 omg that was hard for me to figure out lol
That sounds like maths problem

A helpful solicitor once told me to ignore the 'asking/offers over' price - this is simply a marketing tool to hook you in. You need to base your offer on the Home Report (and your local knowledge of how much over that things are going for in your area).

It is bonkers but yes, the seller will be looking for at least the HR if not more. In my area of Edinburgh properties go for way over the HR.

I'm noticing a bit of heat going out of the market since the 15% high. December is always a good time to buy!
Local knowledge is always good, ask your solicitor, not the estate agent trying to sell the property. The advice to look at the home report and ignore the asking price is good advice. It is just a hook to reel you in!

Good advice all, thanks!

Look at the home report, forget the asking price. Rely on local people who can tell you more too. Talk to a solicitor about properties as well, the EA is not the best person to go to for more information however as they are money minded.

As others have said forget the offers over number it's only there to attract interest. Focus on the home report value. That's what the banks will use to gauge how much to lend also.

Do you have a good local solicitor to put offers in for you? They should give you an idea how much over home report to offer. It's very area dependant so unless you tell us where you are looking we can't help much. Also for popular properties people can just go a bit insane and make ridiculous offers! At least that's what is happening in my part of Edinburgh at the moment

@Callisto1 no I don’t have a solicitor yet. Where does one find them?
I have a government ISA which I believe helots towards thsi?
My mortgage broker is not terribly helpful

We chose a solicitors with an office in the area we were looking to buy in. I think we contacted several and they seemed the most responsive. You could try asking recommendations from people who have recently been through the buying process. The solicitor will usually submit bids on your behalf and then sort the buying process. They often also double up as an estate agent here so have a good idea of prices. You want someone decent.

You can also look at historic prices to see how things are in your area. And after you've bid on a few places your solicitor will tell you how far off you were with the bid if you don't win. Also if you are happy to say where you are looking you might get help from fellow mumsnetters. Can also try Scotsnet here as it filters out all the advice not relevant to Scotland.

Yeah as others have said asking price is irrelevant. Home report is the only value that matters. Depending on area properties may go for over home report. You need a local solicitor to advise you.

If you can tell us the ballpark area you are buying in, someone might be able to suggest a solicitor. I don't believe you can use the same one the house is being sold by.

Your mortgage broker is there to help you get a good mortgage rate, not to help you buy your house.

If the house is valued at £165k and you need to pay £175k to secure it, you will need to have that extra £10k in "cash" yourself. You won't get a mortgage for more than 95% of the value of the home.

If you are interested, find a solicitor and put in a "note of interest". This means the house can't be sold without you having the opportunity to bid for it. In slow moving areas you can just put in "an offer" and the seller can decide if they want to accept your offer, or not. In fast moving areas a house sale is more likely to go to a "closing date" and your solicitor will put forward your "best and final" offer. This is sealed and no-one knows what anyone else has offered.

If you have any questions, folk here can guide you through the process.