Offers over on Scottish property

[Sunflowercanvas]

Looking to buy and in either the Northumberland area or Scottish Borders, therefore some houses are over the border.
What’s the process with Scottish System?
As far as I see it, the home report values a property at say £200k but you have to offer over that… so overpaying?
So does everyone overpay for houses or do some people offer the home report value or below?
Don’t want to loose out on houses for not knowing how the system works.

Hi, probably better to post this in the scotsnet board.
The market seems a bit flat just now in some areas but yes, the norm is to offer above the Home Report value. I can’t speak for specific areas, but in my part glasgow the past few years properties were generally going 15-20% over as standard. Post covid boom a lot we’re hitting the 30% over mark.
A few years ago we offered 26% over HR and were outbid.
That said, at the moment some are going for about 5% over and even selling for the valuation. Which is pretty unusual to be honest.
Again, possibly a different market in other areas so don’t take my word for it!

Agree with @Decisionsdecisions43. If you’re buying a Scottish property, you’d be best with a Scottish solicitor who will advise you on market rates in that area. You’ll need one anyway as Scots law is different to English. When I bought my first flat in Scotland I offered over the asking but below the home report and got it, but when I bought my second prices were rocketing and I had to offer over the home report. A local solicitor will know the current rate.

You need to download the home report. This will tell you the estimated value. Usually properties are marketed slightly under this to attract interest. Sometimes well under if it's a property where getting people through the door to appreciate a view or location difficult to capture in photos is important.

In a poor market they might not reach the home report value at all. In a strong market they can go as much as 20 per cent over but I don't think this is likely in the current climate, though for a unique property it could still apply.

Remember that lenders go off the home report value so you can't usually borrow the offers over part, that needs to come from your deposit so needs to be considered for LTV.

Where I live the marketed price is about what they are going for (sometimes under) but it varies by region. You need to make an offer through a solicitor so they will give you a good indication of current market.

Ultimately you'll pay whatever the current market says it is worth which is the same anywhere so I'd think about offers over more as a marketing tool than because you are overpaying (unless you are trying to buy in Edinburgh during a property peak!)

It is very area dependent, you really need to speak to locals to find out. I paid 5% under hrv and asking price for mine last year but in many other areas it's 25/30% over.

As others have said, whether you offer over home report is hugely area dependant. The bank will usually accept the home report value so any money over home report will have to come from your own pocket.

I think the best idea is to approach a local Scottish solicitor and ask for guidance. And also look at previous sale prices. If the market is slow you could offer under. If the house is very popular they will go to closing date where you have to submit a sealed bid. If that hasn't happened then you could always approach them with a lower offer and see what they say. You will need a solicitor at that point anyway. They make offers in Scotland.

Get in touch with the mortgage hub in Glasgow. They can help with properties in both England and Scotland - we moved from Scotland to England this year and they were extremely helpful.

Thanks everyone, so I definitely need to download home report, and see what the estimated value is, not just the marketed value. Didn’t realise they were different, so thanks for highlighting that.
Next step find a solicitor if we end up going for Scottish property.

We bought our house in late July this year and got it for HR value. I think we were just very very lucky that the seller wanted it to go to a local family and we fit that criteria - she was selling her old family home after both parents had passed.I know others people had offered over HR value, but the seller chose us in the end.