'Offers over' help me decide what is reasonable?

[Lizzie523]

Hi everyone I'm a first time buyer in Glasgow and have £110,000 to spend on a flat (but thinking I can take out a mortgage for remaining amount if I find a place I really like). At the moment I live around West End and am hoping to stay here. But it is not easy to find a 2 bed that doesnt cost a bomb.

Finally a 2 bed a couple of streets away has gone on the market. They asking for 'offers over 125,000' so I would need to take a mortgage out for that one. Do you think it is too much and also how much should I actually offer in these situations

All advice appreciated!

125k for a two bed flat? I wouldn’t say that’s expensive but what have other flats in the neighbourhood gone for and what’s it valued at?

What is the valuation in the Home Report? We were told in late Feb/early March that it was usual in Glasgow west end for property to go for 10% above HR valuation. However that was pre lockdown and we had an offer accepted at the HR valuation on a 2 bed in the west end

That's just it @mrs2468, most 2 bed properties around the area have sold for more like 140,000. Not set in stone but generally.

There is no home report from what I can see, just a brochure that doesnt tell me a lot. It is usual to have to request a home report?

Right I found the home report and it is currently valued at £145,000. I dont think I'd be aiming as high as that, I feel it is too much.

Yes @Lizzie523, you need to request the home report from the agent, sellers have them done and they are made available to any interested buyer. Usually in the west end of Glasgow, properties go 10-15% over offers over price. However there seems to be a post Covid bubble and things are moving for crazy inflated prices. I am on the outskirts and just lost on a property that went for 23% over which is insane.

The home report will tell you what the market value is, then you decide what to offer. You’ll need a solicitor to make offers for you.

Any advice on finding a good solicitor for this? I didnt realise it was required. As I say brand new to this as a first time buyer.

Most properties in my price range in the west end are 1 bed. But I feel that will probably be too small. So I would consider moving to a 2 bed somewhere else, but I know I wouldnt like or love it the same way.

The West End is Glasgow is dear.

If the home report it £145K would they accept any less? Pre-Covid I would have said they’d expect the valuation or more. Nowadays though..?

Offers Over is very area specific - your solicitor will be able to advise you.

To put it in perspective the last property I sold in Scotland (desirable central edinburgh equivalent area to West End in Glasgow) went for 15% above the offers over price.

Parts of Edinburgh are apparently up at 20% at the moment.

Yes you can use the solicitor attached to any estate agent, we’ve always done that and it’s been fine. Did you say you have £110k to spend? As getting a £30/40k mortgage is peanuts, it’d cost you nothing. Do you have stable work?

Yes my job is stable at the moment. I feel the job market is so uncertain in general since the pandemic though.

As long as everything remains steady at work I reckon j could pay off that amount in 5 or 6 years.

How do you find out which solicitor is linked to the estate agent, will the agent put me in contact?

Yes, if you see a property you want to bid on, ask the agent marketing it to put you in touch with their solicitor.

It does sound great to be mortgage free so soon, it’s an unusual way to do it. You may find as you learn more about this that you expect to pay more in the west end and your idea of what’s normal for a mortgage may increase. You’re in a great position with such a big deposit.

What area are you looking? I’d be surprised if you got a 2 bed around byres rd etc for £140.

Thanks Merename, that is good info to have.

Yes I am in a very fortunate position. I am actually looking in Partick at the moment. Seen quite a few 2 beds go for around 145k. It takes me about 15 mins to reach Byres Road from where I live now (walking).0

I have been keeping an eye out for 2 months and this is the first 2 bed I've seen at a reasonably price.

Why do you think they are only asking 125k+ if the property has been valued at 145?

Pre covid properties in popular areas were going for over the home report valuation. We paid 5% over the home report and other properties we had bid on had gone for higher %ges over.

You need to get a solicitor who will advise you what the market is like in the area you want to buy in.

My EA friend says there is lots of pent up demand atm and having 70+ viewings on desirable properties is not unusual.

Oh really @Graffitiqueen? Hearing that makes me feel a bit deflated! But I suppose it is just realistic.

Just noticed this property is 2 mins away from local pub. A nice pub and the flat has double glazing but still, something to consider (might get loud!)

West end going like a bomb at the moment
10% + over HR very common

@Lizzie523

Thanks Merename, that is good info to have.

Yes I am in a very fortunate position. I am actually looking in Partick at the moment. Seen quite a few 2 beds go for around 145k. It takes me about 15 mins to reach Byres Road from where I live now (walking).0

I have been keeping an eye out for 2 months and this is the first 2 bed I've seen at a reasonably price.

Why do you think they are only asking 125k+ if the property has been valued at 145?

It’s just the Scottish system, it’s a bit peculiar. But when you get advice you can get to know the trends and what it all means, what is typical for that area.

My friend owns a one bed in Partick, and I’m sure it’d be worth 140ish, I suspect you will need to revise your expectations a bit unfortunately. But a 60k mortgage (for example) is really not a big deal, would probably be approx £500-600 a month in mortgage payments, depends on the term you take it over.

Estate agents also have mortgage advisors attached to them and often they charge no fee, they just get it from the company you take the mortgage with.

Exciting times! Does take a while to get to grips with it all tho.

I also meant to say, if the valuation is £145, then you can expect it to go for 10-15% over that figure.

When you say you’ve seen 2 beds go for 145, is that the sold prices search on Rightmove? That’ll give a clearer idea.

Flats are disappearing just days after coming to market or going to closing dates at the moment, particularly in areas you're looking at. Have been following the market for a while as DP and I were both selling respective flats and buying. In most cases, properties go on at offers over to gather interest but that's often quite a bit less than home report value (as is the case here) and in high demand areas sellers wouldn't expect to get less than home report value. In fact they'd probably expect to get more more. It's not unheard of to sell for more than 10% above home report value and estate agents are saying they're sometimes going for a lot more at the moment. Definitely worth engaging a local solicitor as they'll be best placed to guide you on what's realistic. You'll need them to make an offer in any event. Good luck 🤞

Friend just sold a house in Dumfries 3 bedrooms nd got 400 virtual and 10 physical viewings in week 1 and an offer 12% above asking price.

Help me I've been looking into this and it seems ever more complicated.

So I will likely need to get a mortgage in principle. Should I get this first and engage a solicitor after? Is the solicitor likely to quite a fixed fee or is it dependent on the months/time it takes to find a place?

Haha! Don’t worry. I am on my third buying experience and feel clueless In some respects still, it is complicated.

Yes I’d say mortgage in principle first, you don’t really need a solicitor until you want to make an offer. I’d actually recommend the mortgage advisor in Aberdein Considine on byres rd, I’ve used him twice and was useful. Or you can just approach your bank and see what they will give you, given you’re not borrowing much I doubt you’ll have any issues so it’s just seeking the best interest rates.

Yes a solicitor can quote you a fixed fee, I think lots of it is tiered depending on the price of the property you are purchasing, ie fees to the government, with a set solicitors fee. I’ve just been quoted £1200 for their fee, plus various other bits which are government mandated, land registry fees etc. You could get a couple of quotes for peace of mind. You won’t pay any stamp duty (now lbt in Scotland) which is a bonus!

Thanks @Merename. This is all really useful. Also makes me feel less stupid and that there really is just a lot to get your head around!

Am I right in thinking a mortgage in principle is only valid for a short period? So I my search goes on longer than a few months I'd need to get a new mortgage on principle etc

Yes that’s right. I forget but maybe 3 months it’s valid for?