Scottish buyers

HAMISH_MCTAVISH

wla wrote: »

We seen a property with offers over 175,000 that we like. The main difference in Scotland compared to England i'm told is that if it states offers over a certain price it means just that, as that is what it is worth over 175,000. Is this information accurate?

Yes, to some extent. But much will depend on the home report valuation, and the local market.

Houses in Scotland used to be either fixed price or offers over, but with the addition of offers around are now sold one of three ways.

Fixed Price. Which means that's the price they want, but it will usually be at the upper end of the spectrum, and you can usually negotiate downwards. Same as English system basically.

Offers around. Usually a price close to the home report valuation, and it may sell for a bit more or a bit less depending on the level of interest and competition from other buyers.

Offers Over. The traditional means of selling, and it used to most often be a price that was significantly below the valuation, used as a marketing tool to drum up potential buyers and spur competitive bidding.

Since the advent of home reports, and seller valuations, the offers over system has been in decline, but is still quite common.

If a house is in a desirable area, and likely to have competitive bids, we are now seeing the offers over price being set at valuation price, and buyers paying more than that as a premium to get the house. But this is still quite rare, and usually only applies to the best houses in the best areas.

The other thing worth noting, is that the Scottish market can be highly seasonal. In my own town, Aberdeen, the "spring bounce" last year was 19%!!!!!

So someone listing a house in Winter, off season, may be factoring in the summer price rises to their expectations, hence the offers over price being at todays valuation, with an expectation that prices will rise by 10% plus in summer.

I had a look at Zoopla to see how much the house sold for last time it was on the market and it sold for £170,000 in 2007, am i right in thinking prices were really high then and fell in 2008?

Not really. It depends which area you're looking at. In some areas, prices have never fallen below 2007 levels. The only argument is which month in 2007 they are at. In other areas, prices fell off a cliff, and are still depressed. But in most areas, prices did fall noticably, but they've recovered quite strongly since. So whilst still down from peak, they're close enough as makes little diffference.

The key thing is the home report valuation, which you state is £175,000, so thats the current value. To get to that value, the surveyor will have looked at other recent sales in the immediate area, as well as the current state of the market, and it'll be good enough for most banks.

But if your area is seasonal, in 6 months it could be closer to 200K...... So buying in winter is usually a good idea for most parts of Scotland.

went to look at Nationwide house price calculations typed in the amount it sold for in 2007 to see what they estimate it is worth now.
The first time i done it the answer came back 147,282. I thought that cant be right and tried again, second answer 149,815 and third answer 157,826. Can anyone direct me to a calculations site that gives accurate information?

No, but I can direct you to some very accurate pricing information for your area, and you can calculate the relevant price falls and rises since 2007 for yourself.

Average monthly house prices from actual sold price data broken down by local authority for every area in Scotland for the last few years can be found here.....

http://www.ros.gov.uk/professional/eservices/land_property_data/lpd_stats.html

And your local Solicitors Property Centre (ie, GSPC, ESPC, ASPC) will also provide a monthly or quarterly report, usually broken down by house type and suburb as well. So for example, Aberdeen, then Westhill suburb, then Detached, Flatted, Semi, Terrace, etc..... Should be available on their website.

For the majority of houses, in the majority of areas, all the above should be of help.

If it were me, and there are no other offers on the table at the moment, I'd put in a cheeky low offer of below valuation to test the waters. But I wouldn't expect it to be accepted, unless they are really desperate.

googler

"And your local Solicitors Property Centre (ie, GSPC, ESPC, ASPC) will also provide a monthly or quarterly report, usually broken down by house type and suburb as well. So for example, Aberdeen, then Westhill suburb, then Detached, Flatted, Semi, Terrace, etc..... Should be available on their website."

...but bear in mind, of course, that depending on where you're buying, the local SPC may not hold dominant market-share, and hence might not be the most accurate pointer...

kriss_boy

Ignore the asking price.

Look at sold prices in the same street. Look at other properties in the same price range and formulate your price based on that.

We like a house thats fixed price of 217K but there 'better' houses we arent interested in listed at just 200K.

wla

Thank you everybody for your most excellent advice so far. I have also found another house at fixed price of £165,000 however this house has been lying empty for over two years prior to having to have home reports done.

The area's we are looking in are around banff, New pisligo, Strichen, Fraserburgh. Hardly high demand area's and sellers usually want out quick or properties are already empty. How cheeky in percentage should i be with a first offer bearing in mind my locations.
We are ready to move in so that sould be enticing.

missile

IMHO, Scottish system is not that different. Houses are often advertised as fixed price, offers arround or over & it is pretty easy to understand what the seller expects. http://www.aspc.co.uk/Search/HomesForSale/CountryAreas.html

As others have said, a decent local solicitor will be able to advise you on how much to offer. I believe house prices are rising in Grampian. However, you seem to have local knowledge and may know better than I. I hope you are lucky and find a bargain.

VIGILANT22

[QUOTE=missile IMHO, Scottish system is not that different. Houses are

QUOTE=missile;IMHO, Scottish system is not that different.


missile....Property Law is very different from the law in England and Wales.

Conveyancing and Property Law in Scotland,
www.scottishlaw.org.uk/lawscotland/convey.html -

wla.....Be very careful with fixed prices, fixed doesn't mean the property is fixed at the valuation price..Have you checked this? .If you're applying for a mortgage, the lender will insist the Home Report has to have been completed within the last 3 months and the survey by a RICS surveyors...In that area it is mainly J&E Shepherd, Graham & Sibbald & DM Hall...

Morayshire has had a dip and is coming back up....By why no interest for 2yrs??...Property has still been selling there..However you're in a good position to negotiate

As for property 1, if the dogs are a problem now imagine living there, don't kid yourself you will resolve this easily by legal action...also do you want to start life like that in a new property?









wla....Be careful with fixed prices, just

wla

Hi Vigilant

re : property 1 - dogs barking

I have lived in this present property for 20 years, i have seen many neighbours come and go, some have been good, some have been bad, a few have had barking dogs, a few have liked to party at weekends, we've seen it all. You just don't know what you are going to get or have to put up with when you have neighbours.

Property 2 has no neighbours, is rural, probably why its been on the market so long, appeals to someone like me but i'm in a minority.

Hope that helps, thanks for your input.

VIGILANT22

My input on dogs is because I have this problem and wasn't aware of it until I moved...I love dogs...but!
Property 2 sounds great...good luck...

wla

What have you done so far to remedy the situation with the barking dogs?

Have you talked to your local dog warden? Are your neighbours unaproachable?
Why are the dogs barking, lack of excersize, aggression ect?

Is it possible to block the barking dogs view from your property via the use of boards ect if its the sight of visitors that disturbs them?

VIGILANT22

Are your neighbours unaproachable?...Yes

Why are the dogs barking, lack of excersize ...Yes