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    • martyhop
    • By martyhop 11th Sep 17, 9:08 PM
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    martyhop
    How to compete with offers over in Scotland?
    • #1
    • 11th Sep 17, 9:08 PM
    How to compete with offers over in Scotland? 11th Sep 17 at 9:08 PM
    We are currently in Scotland and first time buyers. We thought we had fairly substantial savings for a place at just over £40,000. Through a bit of research, considering our salaries and looking at what lenders would lend us, it seemed to us that a property costing around £250,000 would be affordable for us and so that's what we've been looking at. However, we have recently been to a mortgage advisor who has said that properties at the moment in the area we are looking at are going for more than 10% above the valuation, and that banks will not lend us more than the property valuation. Is this correct? It means that realistically, we are now looking at properties of £200,000 and below (actually well below this - we will need to pay all the fees associated with buying, plus furniture!) - £20,000 as a 10% deposit and another £20,000 to meet the 'offers over' demand - and this doesn't even guarantee us the place if someone outbids us. It just seems meaningless that lenders will say that they will lend us something crazy - up to £320,000 - when in reality we can get nowhere near this because we could never come with a deposit for a property of this price AND match the 10% offers over part. Is there any lender that will lend at least part of 'offers over' price - or do we just need to lower our expectations? Is anyone else having this problem?
Page 1
    • scottishblondie
    • By scottishblondie 11th Sep 17, 9:27 PM
    • 1,974 Posts
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    scottishblondie
    • #2
    • 11th Sep 17, 9:27 PM
    • #2
    • 11th Sep 17, 9:27 PM
    The advertised "offers over" price isn't usually the valuation - you need to look at the home report to see the actual valuation. It is true that in some areas with high demand the properties do go for more than the HR valuation, but this is not universal. What is definitely true is that lenders generally won't lend more than a percentage (e.g. 90%, 95%) of the HR valuation, so you do need to keep the HR valuation and the size of your deposit in mind when making offers as if you go over that you'll need to make it up yourself.
    • martyhop
    • By martyhop 11th Sep 17, 9:47 PM
    • 3 Posts
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    martyhop
    • #3
    • 11th Sep 17, 9:47 PM
    • #3
    • 11th Sep 17, 9:47 PM
    Thanks - yeah, I understood that about difference between the 'offers over' part and the home valuation. The 'offers over' prices are often ridiculously low compare to the HR values - I guess this is to generate interest. We have been looking at HR valuations, but it seems that the market is crazy at the moment - really small number of properties coming up with lots of buyers about. all the advice we are getting seems to suggest that 10% over the HR valuation is the going rate at the moment. Unfortunately for us, this has significantly changed what we can afford. Would it be worthwhile waiting for a bit? It seems crazy to offer 20-30 grand more than what a property is valued at.
    • scottishblondie
    • By scottishblondie 11th Sep 17, 9:56 PM
    • 1,974 Posts
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    scottishblondie
    • #4
    • 11th Sep 17, 9:56 PM
    • #4
    • 11th Sep 17, 9:56 PM
    It is crazy, but that seems to be what is going on. I guess some people can afford it, and as they say a property is worth what someone is willing to pay for it in the end. So maybe the HR valuations just aren't realistic in the first place? I'm not sure.

    If you're in a market where demand outstrips supply then the unfortunate reality is that people will be willing to pay over the odds to secure a property and it's been that way for years now. I don't know that trying to wait it out would prove to be a good strategy, but I don't have a crystal ball to predict what the property market will do. It could work out, or you could find that prices continue to rise and you're no better off!
    • ThePants999
    • By ThePants999 11th Sep 17, 9:58 PM
    • 866 Posts
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    ThePants999
    • #5
    • 11th Sep 17, 9:58 PM
    • #5
    • 11th Sep 17, 9:58 PM
    This confuses me, too - surely if properties are consistently going for well over the HR valuations, the HR valuations are wrong?
    • glasgowdan
    • By glasgowdan 11th Sep 17, 10:04 PM
    • 2,583 Posts
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    glasgowdan
    • #6
    • 11th Sep 17, 10:04 PM
    • #6
    • 11th Sep 17, 10:04 PM
    Surveyors can't predict competition amongst buyers.

    Can I ask where you're looking to buy?
    • ProDave
    • By ProDave 11th Sep 17, 10:13 PM
    • 413 Posts
    • 488 Thanks
    ProDave
    • #7
    • 11th Sep 17, 10:13 PM
    • #7
    • 11th Sep 17, 10:13 PM
    What part of Scotland? Here properties at below HR valuation don't sell/
    • davidmcn
    • By davidmcn 11th Sep 17, 10:57 PM
    • 6,105 Posts
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    davidmcn
    • #8
    • 11th Sep 17, 10:57 PM
    • #8
    • 11th Sep 17, 10:57 PM
    This confuses me, too - surely if properties are consistently going for well over the HR valuations, the HR valuations are wrong?
    Originally posted by ThePants999
    Any valuation is only going to be based on the evidence from (registered) sales of comparable properties, not a prediction of what prices sales will be completing at 2-3 months in the future.
    Last edited by davidmcn; 11-09-2017 at 11:01 PM.
    • Crashy Time
    • By Crashy Time 11th Sep 17, 11:29 PM
    • 5,230 Posts
    • 2,209 Thanks
    Crashy Time
    • #9
    • 11th Sep 17, 11:29 PM
    • #9
    • 11th Sep 17, 11:29 PM
    Probably a safe bet it isn`t Aberdeen.....
    • martyhop
    • By martyhop 12th Sep 17, 6:53 PM
    • 3 Posts
    • 0 Thanks
    martyhop
    Area we are looking is basically Pollockshields/ Queens Park/ Shawlands.
    • cr1mson
    • By cr1mson 12th Sep 17, 8:24 PM
    • 762 Posts
    • 579 Thanks
    cr1mson
    Depends on the area and type of house but where I stay in 2001 3/4 bed houses were going at 15-20% over asking and they still are 16 years later.

    Speak to your solicitor as they should have a good idea of lay of the land. My sister in law had a flat in that area and she was lucky to get it as the people selling liked her. When she sold it later it was just as mad in terms of being over valuation.
    • bris
    • By bris 12th Sep 17, 9:31 PM
    • 7,042 Posts
    • 6,041 Thanks
    bris
    A lot of homebuyers can do it because they are also selling for over HR valuation so have the extra cash to do it.


    O/O are always priced cheaper than the HR because it generates interest, this interest gets people excited and they tend to bid.


    It's supply and demand, when supply is low people get desperate and over bid. Remember the HR is just what the computer comes up with due to history of the area etc, the house is actually worth what someone is willing to pay, and that worth is not the same for everyone.
    • glasgowdan
    • By glasgowdan 12th Sep 17, 9:38 PM
    • 2,583 Posts
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    glasgowdan
    The reality is a lot of people want to live in some of these areas due to good schools and proximity to the town. There are a lot of buyers with a lot of cash. I dont5think there's much to gain by trying to get in early with viewings and offers.

    You have to be persistent patient and eventually you'll get something. A lot of people can't be bothered with renovation work so if you can stomach that you'll have a better chance.

    I'm sure you know these areas well. I'd stay away from queens park if it were me...rather attractive a spot for bored neds at times!
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