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Buying a house in Edinburgh..

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Hi,

Recently we have seen a house in Edinburgh and we like the house and it is currently on offers over 175k. As I am a first time buyer I need some help from you guys.

When I'm placing an offer tomorrow should I start with 176k? Will the agent tell me what was the last bid or it won't be revealed?

About mortgage, I spoke to the bank informally to find out how much I can borrow and it is with in my budget. should my mortgage be ready or should be agreed with the bank before I place my bid?

Thanks in advance

Comments

  • theartfullodger
    theartfullodger Posts: 15,707 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Speak to a solicitor so you've at least half-got-one-lined up & can be advised...

    You are familiar with scottish legal processes?

    "Offers over".. Hmmnn well it depends. Clearly seller wants a high offer but there is nothing preventing you making a low offer. How long has it been on for? Many viewings? How many offers? Is the seller only interested in price or or spead/certainty of sale of importance? You could ask the agent and (occasionally) might get a helpful answer.

    I'd offer low - say £165k but then that's me.

    Good luck!


    Lodger
  • googler
    googler Posts: 16,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    rajakumar wrote: »
    Hi,

    Recently we have seen a house in Edinburgh and we like the house and it is currently on offers over 175k. As I am a first time buyer I need some help from you guys.

    When I'm placing an offer tomorrow should I start with 176k? Will the agent tell me what was the last bid or it won't be revealed?

    About mortgage, I spoke to the bank informally to find out how much I can borrow and it is with in my budget. should my mortgage be ready or should be agreed with the bank before I place my bid?

    Thanks in advance

    There's nothing that says you HAVE to offer above the offers over price - you can start at £160k if you want to... just don't be surprised if your offer is rejected.

    The agent absolutely will NOT tell you the level of any previous offer, but should tell you if any previous offers have been received and rejected.

    Best to have an agreement in principle from your chosen mortgage company before you place an offer.

    DO YOU HAVE A SOLICITOR TO ACT FOR YOU?

    It's standard practice for offers to be made in writing to the selling agents, and these offers must be in Scottish legal form, otherwise likely to be ignored. Your solicitor may advise that you don't make an offer until you have the AIP from mortgage company. Your solicitor should try to get a yes or no from the selling agent within a day or so, rather than them not accepting or declining your offer and waiting for a closing date.
  • googler
    googler Posts: 16,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    .....and come to think of it, NO, you should absolutely NOT offer over £175k, because that's the current stamp duty threshold.

    If you pay up to £175k for the house, you pay no stamp duty. If you pay £175k or above, then you pay £1750 or more in stamp duty - 1% of the purchase price.
  • googler
    googler Posts: 16,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Which part of Edinburgh is it in?
  • Beancounter
    Beancounter Posts: 1,076 Forumite
    rajakumar wrote: »
    Hi,

    Recently we have seen a house in Edinburgh and we like the house and it is currently on offers over 175k. As I am a first time buyer I need some help from you guys.

    When I'm placing an offer tomorrow should I start with 176k? Will the agent tell me what was the last bid or it won't be revealed?

    About mortgage, I spoke to the bank informally to find out how much I can borrow and it is with in my budget. should my mortgage be ready or should be agreed with the bank before I place my bid?

    Thanks in advance


    Was the house placed on the market after 1st Dec last year? If so then it will have a Home report containing the valuation. Most properties put on the market now seem to be at or near the valuation making things much easier for the buyer.

    If it was on BEFORE 1st December it maybe give you an excuse to offer less anyway. As someone else has said, beware of the stamp duty threshold.
  • Caz3121
    Caz3121 Posts: 15,837 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If there has been another offer they are likely to set a closing date and at this time all offers go in. We are in Edinburgh and not seen the same effect as some parts of the country, less on the market, but still seems to sell.
    A lot will depend on the sellers circumstances, do they need to sell, relocating, bought another property..otherwise they may well just sit it out. I would guess at o/o £175k they are probably hoping for the £190-200k mark but they are going to be hit with the £175k stanp duty putting people off
  • rajakumar
    rajakumar Posts: 90 Forumite
    googler wrote: »
    .....and come to think of it, NO, you should absolutely NOT offer over £175k, because that's the current stamp duty threshold.

    If you pay up to £175k for the house, you pay no stamp duty. If you pay £175k or above, then you pay £1750 or more in stamp duty - 1% of the purchase price.

    Thanks for the advise. It is been advertised that the stamp duty will be paid by them. It came to the market last week and the property is in the city centre.
  • jasper12
    jasper12 Posts: 189 Forumite
    Part of the Furniture Combo Breaker
    rajakumar wrote: »
    Thanks for the advise. It is been advertised that the stamp duty will be paid by them. It came to the market last week and the property is in the city centre.

    Get a copy of the home report....I would hazard a guess that the valuation is around the £175 mark ...have seen quite a few and that seems to be the common theme.

    Although, in saying that. there are a few cheeky ones asking o/o, say £180 when the valuation is only £170...with a lot of work needing done. :eek:

    Where about in cc? Is it a newer build or older property?
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