Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Scotsnet

Welcome to Scotsnet - discuss all aspects of life in Scotland, including relocating, schools and local areas.

Flip

1 2

Original poster

How to make a competitive offer on property without overpaying (Scotland)

47 replies

geezahoose · 02/04/2021 17:58

I know this really depends on the property and the financial situation of a buyer, but there's so much demand for property at the moment in our area that I feel like we'll never make a successful offer without paying a huge percentage more than the valuation in the home report.

Recently lost out on a decent house despite offering 10% over. Tiny 2-bed semi with big garden, sold within a few days - it's just crazy at the moment!

How can we make a competitive offer without overpaying? Do we really need to be offering 20% over if we can afford it long term??

OP posts:

suggestionsplease1 · 20/04/2021 17:31

It's crazy out there right now. The worst I heard was 30% over for a tenement flat in a bit particularly desirable part of Glasgow.

You can also try enquiring about how many notes of interest there have been just before the closing date..only 1 or 2 then maybe you might be successful with a lower offer compared to 10+ notes which show it's likely to be very popular at the closing date.

suggestionsplease1 · 20/04/2021 17:32

not particularly desirable part of Glasgow

I0NA · 20/04/2021 17:36

YY. I viewed a house in Govan last month that ended up with 17 notes of interest and sold for more than 25% over HR value.

Madness. Govan.

Grumpycatsmum · 21/04/2021 16:35

Just been outbid on a property which has gone for more than 15% over home report value. We wouldn't have bid that much but still. Crazy

BlackForestCake · 21/04/2021 23:07

What is fuelling the housing market at the moment?

Haudyourwheesht · 21/04/2021 23:30

I think covid has given people more flexibility, wrt working from home. Lockdown also gave people a chance to save, and I suppose it may also have magnified the flaws in people's homes, meaning they want to move.

Grumpycatsmum · 21/04/2021 23:40

And record low interest rates, meaning people can afford more and so borrow more

I0NA · 22/04/2021 00:16

@Haudyourwheesht

I agree. Lots of people now want a garden because they bought a cat / dog or they need a spare room to work from home.

Many first time buyers have saved a bigger deposit because they’ve been on furlough and shopped and socialised less. Others have more help from the bank of mum and dad.

Lots of couples have split up over lockdown.

So I think it’s just supply and demand . More demand because of all these factors and low interest rates combined with fewer properties coming onto the market.

user143677433 · 25/04/2021 12:20

At the risk of stating the obvious, look at new builds which are almost always fixed price. Obviously that only works if there are new builds where you want to live though.

GintyMcGinty · 25/04/2021 12:23

If you have lost out at 10% then you need to go higher.

Has your solicitor given any advice? I would study zoopla and see what prices similar properties have sold for in last 3-6 months.

GintyMcGinty · 25/04/2021 12:24

Also agree with pps re new builds.

imperialqueen · 02/05/2021 17:23

I live in the southside of Glasgow where schools are supposedly popular. Houses going here for more than 20% over the home report value.

Is there still no stamp duty? if so, this will be another reason for people wanting to buy.

user1487194234 · 04/05/2021 18:30

LBTT is back to normal in Scotland
20% + very common in hot spots

StarryEyeSurprise · 04/05/2021 18:41

Yeah. Lots moving up from the SE hence the ability to pay way over the home report value. £300k doesn't get you much in London.

I think it'll calm down next year as most wanting to move away from the cities will have done so already.

StatisticallyChallenged · 05/05/2021 20:39

@GintyMcGinty

Also agree with pps re new builds.

This is what we did. Looked a bit expensive initially compared to older property nearby (we dithered between the two) but the older property went for 100k over the O/O price despite needing loads of work.

Who knows how it will pan out in the long run but in this kind of crazy market it at least took one stress out

Original poster

geezahoose · 06/05/2021 14:51

@GintyMcGinty

If you have lost out at 10% then you need to go higher.

Has your solicitor given any advice? I would study zoopla and see what prices similar properties have sold for in last 3-6 months.

Yep, have been doing this and it seems prices have continued to rise over the last 6 months or so, presumably because there's so much less up for sale and more competition. Even homes that need total renovation have been going for stupid amounts. I feel like we're having to completely ignore what seems rational in terms of offers.

Our own flat is now under offer for 20% over home report! Seems wonderful but it makes no difference whatsoever as all of it will need to be sunken into a deposit and/or repairs if we want any chance of affording a new place (small 3 bed is all we want, but apparently so does everyone else!).

There's probably less than one property a week going up for sale in our area and most aren't suitable. There's not even anywhere to rent

OP posts:

Confusednewmum1 · 06/05/2021 16:08

Remember you cannot over pay for a property - it may cost more than you want but that’s not over paying.

Property sells for whatever people want to pay for it.
The more it sells for the more it inflates surrounding property values!!

Twosharks · 07/05/2021 22:53

@Confusednewmum1 I’m not sure if it was you who said similar back in the thread as well but I’m not sure what you mean by ‘you can’t over pay?’ - does that only apply to properties you plan to stay in long term? Because what if you want a stepping stone 3/4 year house? Couldn’t you potentially ‘lose’ a fair bit of money if the prices go back down? Or is it just that they aren’t expected to?

Hope the doesn’t sound confrontational, I’m interested

Confusednewmum1 · 07/05/2021 23:01

Prices don’t tend to go down or down buy much if you are buying a non new build. When property prices drop new builds are the ones that drop considerably as there’s nothing to basis their value on really.

Even in 3/4 years you would gain considerable equity in your mortgage repayments and as house valuations are based similar on properties in the area (Home report wording) by paying what ever you do it improves area prices and valuations for the street/local area.

Lillipops · 07/05/2021 23:08

Property prices in our neck of the woods has gone mental, west coast of Scotland not far from Glasgow. We bought 18 months ago and there's folk paying 50k over the offers over price! You're talking 250k for a 3 bed semi. We have considered selling and buying a similar 3 bed but ex local authority property but they don't really compare. We would probably be mortgage free but we think prices will crash. It's madness so it is

Twosharks · 07/05/2021 23:25

I see what you mean Confused! That makes sense. So will we start to see Home Report values rising and if so will that put a stop to the 10/20% over situation do you think?

It’s all so frustrating. All of a sudden we are £20/25k short for houses we could have afforded before things kicked off like this.

ContadoraExplorer · 11/06/2021 12:10

3 bed semi near us (sought after location due to schools) went for £60k over asking price recently, which is more than 20% over asking price. Its also c.£80k over what we paid for a similar house 5 years ago. Both had been extended but slightly differently and I think ours had a more modern decor compared to the more recent sale so less work required to make it out own.

I don't envy those buying houses right now, it's horrible out there.

Flip

1 2