Scotland - Silly Offer?

lsv

I'm a FTB in central belt scotland, asking prices do seem to dropping (although not massively) but properties seem not to be moving.

Anyway, I've viewed a flat I like and put in an offer 85% of the asking price of 77000 (fixed). Similar properties were selling for just under that value around this time last year and I thought the offer was fair. This would also give the seller not far off double what they paid when they first bought (not a bad profit).

I've since heard back that the offer was rejected as too low - And also that the property when first marketed was on for o/o 90 odd K!!! Which was unrealistic. Incidently the sellers EA 'minimised' the time the property has been on the market for.

My own strongly held belief is that prices have got a lot further to go so a risk margin must be built in. However I'm looking for the property to live in, not to make money.

I know its a very subjective qestion but what would a realistic offer be? Has anybody bought in Scotland recently?

besonders1

By the looks of it the seller would only accept the full asking price but well done for trying as its only what I would have done (well actually I would have offered a lot less). Try and shop around and see if there are any similar flats or houses in the area, don't make the mistake of getting too attached to one property. Just remember that if the flat was reasonably priced, it would have sold by now so don't believe any EA spin about it being reduced already as they were never worth that price to begin with anyway.

Premier_2

If you want to buy today, you have to accept you'll have to pay today's price.

If you want to pay some price you think it'll be worth in the future, buy it in the future, when you'll discover if you're crystal ball is correct or not.

besonders1

unfortunately thats the way it is i'm afraid

mymatebob

lsv wrote: »

I'm a FTB in central belt scotland, asking prices do seem to dropping (although not massively) but properties seem not to be moving.

Anyway, I've viewed a flat I like and put in an offer 85% under the asking price of 77000 (fixed). Similar properties were selling for just under that value around this time last year and I thought the offer was fair. This would also give the seller not far off double what they paid when they first bought (not a bad profit).

I've since heard back that the offer was rejected as too low - And also that the property when first marketed was on for o/o 90 odd K!!! Which was unrealistic. Incidently the sellers EA 'minimised' the time the property has been on the market for.

My own strongly held belief is that prices have got a lot further to go so a risk margin must be built in. However I'm looking for the property to live in, not to make money.

I know its a very subjective qestion but what would a realistic offer be? Has anybody bought in Scotland recently?

If you had offered me 85% under the asking price I would tell you were to go but I do assume you meant 85% of the asking price.

If it goes to a fixed price in Scotland then that is generally what people expect to get - with a very few percent, not as much of a drop as 15%.

chopperharris

Offers over are exactly that , owner is looking for upwards of 15 percent over that.

Scots sales are akin to best offer accepted , just like an auction , very loosely speaking.

If it was in the EA as fixed price then that rarely will accept a lower offer also.The fixed price is a promoter and has usually factored in that its under market value.

So you were really offering 70 percent or so of what it has been valued at , or "wanted" by the vendor themselves.

The scots market aint that bad off , "yet" , and the supply/demand is less than elsewhere in the uk.While/where there is still a demand any reductions are rare ie its stagnation , and elsewhere reductions still in the lower digits for a resale .... BUT exclude newbuilds which have external forces like company debt repayments to drive a reduction.

Ivana_B_Rich

I've no experience of this at all so this is just my opinion.

If you really like the place tell the EA you will leave the offer open until X. As the market is slow at the moment there's a chance your offer will look more attractive to the vendor as time goes by. In the meantime keep looking.

besonders1

The chances are the flat will still be for sale in six month time so you could try again, what you think is a silly offer, may be a silly price to pay if you buy now. As I said if it is still for sale this summer then it is not worth the asking price. Just because it says offer over or fixed price doesn't stop people offering less or just the asking price , otherwise you would be a fool to offer more when you don't need to.

lilac_lady

If you really want the flat, put in a higher offer. If you don't really care, wait and see what happens.

lsv

Thanks for the responses

@ Premier - The issue is that 'today's price' is not realised until it actually sells. I'm trying to acertain todays price based on the offers people are making at this point in time (or offers below fixed price).

@ Mymatebob - Yup, 85% of asking price (cant believe I missed that!)

@ Chopperharris - Quite a few reports are now stating that in central belt, the majority of properties are going for an offer under fixed price (albeit the percentage under is not disclosed)

Thanks all for the comments.

Has anyone here bought at under fixed price? What did you offer under?

mymatebob

The central belt is a hell of a size of area with huge differences in prices.

If you are not that bothered where you stay then I would continue to shop around, and see what your budget can buy.

I will give one anecdote about selling recently.
Friend of mine, had bought a new place out in the country, decided to sell his Glasgow West End Flat. Luckily he was in no rush for money as he and his OH are pretty big earners. Went on the market in May of 2008

On the market for offers over £220000, not a lot doing after a month so on at fixed price of £230000. Still nothing doing. He did some investigation and found that his EA was doing nothing to promote the sale, so he got rid of them and marketed it again, with another EA (after first negotiating a huge discount from the first EA)

Sold in early December for over £290000.

As I said he was in no desperate rush to sell although he would have been happy to get rid of it quicker for less, but I suppose another £70k is no bad thing