Offers over is over for house prices in Scotland.

geneer

http://scotlandonsunday.scotsman.com/news/Offers-over-is-over-for.6749125.jp?articlepage=1

Another nail in the coffin.

IT WAS the stuff of nightmares for prospective home-buyers, Just how much over the asking price will it take to get the house, 20 per cent, even 30 per cent? But now those days are over, according to Scotland on Sunday's annual Scottish house price guide.
Now experts say the English-style "offers around" system has become more prevalent and even many homes marketed at a fixed price are selling at below the asking price.

Property agents believe prices across the country are now at a more "realistic" level because of a combination of the recession and the introduction of the Scottish Government's Home Reports system.

While restrictions on mortgage lending brought a squeeze on demand and a fall in prices, Home Report valuations - now a statutory requirement - have meant that buyers are reluctant to pay over the odds.

The Edinburgh Solicitors' Property Centre (ESPC) has reported that over the past three months 75 per cent of homes on the market for a fixed price sold for less, with canny buyers negotiating prices down on properties that have proved difficult to sell.

Estate agent CKD Galbraith said prices achieved during 2010 were on average within 0.5 per cent of the asking price.

The moves represent wholesale change in the Scottish property market, which, until three years ago, saw premiums of up to 30 per cent paid by buyers of high-quality homes to get the property of their dreams.

Large premiums above the asking price were a feature of the property market across Scotland in the mid-2000s, but particularly in Edinburgh and Glasgow and the commuter towns of the Central Belt, because high-earning employees from the then booming financial sector were driving prices up.

In Edinburgh in 2006, the average premium being paid was just under 20 per cent, meaning a buyer pursuing a home on the market for £500,000 would have to offer about another £100,000 to beat off rivals.

They were also prevalent in Aberdeen because of the regular influx of well-paid oil industry executives and in some coastal areas where wealthy retirees downsizing from cities were able to outbid local buyers.

ESPC business analyst David Marshall said: "Conditions remain challenging for sellers and those that are achieving sales are generally having to show some flexibility in negotiations.

"'Offers around' and 'in the region of' are increasingly popular. I suspect we will probably not go back to premiums being paid of 25 per cent over on the 'Offers Over' properties."

Janice McIvor, the manager of estate agent Slater Hogg & Howison's Stirling branch, said: "The boom is over. Properties that were worth £900,000 in the boom are now worth £750,000.

chucky

desperate much

geneer

chucky wrote: »

desperate much

You obviously don't understand.
Maybe Hamish will pop in to explain how this key change has and will effect the scottish housing market.

HAMISH_MCTAVISH

geneer wrote: »

Maybe Hamish will pop in to explain

Sure.

In the days before the Home Report, people would expect a house to sell for £200,000, and put it on the market for Offers Over £150,000 to stir up interest as a marketing ploy.

Now, most people don't bother with the marketing ploy as the Home Report states the value up front. So they tend to put it on for Offers Around the valuation price.

No real change to house prices.

And offers over is far from dead, a significant percentage of houses are still marketed that way, and many still achieve a premium over valuation price.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Sure.

In the days before the Home Report, people would expect a house to sell for £200,000, and put it on the market for Offers Over £150,000 to stir up interest as a marketing ploy.

Now, most people don't bother with the marketing ploy as the Home Report states the value up front. So they tend to put it on for Offers Around the valuation price.

No real change to house prices.

And offers over is far from dead, a significant percentage of houses are still marketed that way, and many still achieve a premium over valuation price.

Which is it?

HAMISH_MCTAVISH

Graham_Devon wrote: »

Which is it?

A significant percentage = around a third from memory.

Most people = more than 50%.

So the answer is......











































......both.;)

Rinoa

Either way Edinburgh house prices are up another £2000 in March according to ESPC.

Another nail in the coffin for some.
:beer:

HAMISH_MCTAVISH

Rinoa wrote: »

Either way Edinburgh house prices are up another £2000 in March according to ESPC.

Another nail in the coffin for some.
:beer:

Time for the seasonal airing of.......

The Downfall of geneer:

http://www.youtube.com/watch?v=TCcNUgg9IPM&feature=player_embedded

geneer

Rinoa wrote: »

Either way Edinburgh house prices are up another £2000 in March according to ESPC.

Another nail in the coffin for some.
:beer:

:rotfl:You win this months numberwang Columbo.
Still tens of thousands of pounds less than when you and Hamish were super excited about "new peaks" .;)

lucylucky

geneer wrote: »

:rotfl:You win this months numberwang Columbo.
Still tens of thousands of pounds less than when you and Hamish were super excited about "new peaks" .;)

You may wish to change the heading of this thread as it is incorrect.;)

geneer

HAMISH_MCTAVISH wrote: »

Time for the seasonal airing of.......

The Downfall of geneer:

http://www.youtube.com/watch?v=TCcNUgg9IPM&feature=player_embedded

Fantastic. I remember this one.
Hamish and Co heard a rumour that Edinburgh YOY was rocketing.
They got all excited, particularly as I was off on holiday.
One of Hamishes pals, Fubra, cobbled together this highly original downfall parody.

Of course it transpired that not only was the YOY change significantly less than anticipated, but that there had also been a significant monthly fall.




Tee hee.

I really do wonder why you guys keep bringing this one up.