House Prices in Scotland

Jo.1981

Can someone please explain to me why in Scotland people can afford to offer so much over the asking price and why would they want to pay well over the odds for what it is on the market at. I know someone whose 1 bedroom flat was on the market at offers over £62k it went for over £100k. Some companies do offer 125% mortgages but I just do not get why someone would want to pay massively over what something is valued at.

My fiancée and I have been looking for a house for about a year and a half now are combined salary is not at all bad but we can afford to compete with these 'big spenders'. I get the feeling everyone wants to redevelop to make as mush money as possible and all I want is a nice wee house that we can start out life together in.

irnbru_2

Jo.1981 wrote:

I know someone whose 1 bedroom flat was on the market at offers over £62k it went for over £100k.

Aberdeen? Edinburgh?

Jo.1981 wrote:

Some companies do offer 125% mortgages but I just do not get why someone would want to pay massively over what something is valued at.

(Speculation + desperation) - negotiation = house price inflation.

Jo.1981 wrote:

all I want is a nice wee house that we can start out life together in.

You may just have to face facts and accept that your currently priced out of the market.

itsarichmansworld

Hi Jo

I'm in Glasgow we got our house 5 years ago for £15k now worth in excess of £60k They scottish market has jumped with the rest of the UK,

Best bet is look at "developing" area's South Nitshill was a Ghetto in Glasgow until it was pulled down for a bellway estate now houses there sold originally for 90k now worth 250k

Be savvy look at area like this, Blackhill in Glasgow was featured in the evening times for this reason or bowfield at penilee!

Jo.1981

We are looking for a house in Aberdeenshire.

I have faced the fact that we are priced out the market at the moment (much to my annoyance) but I'm not going to give up!

I think the most annoying thing is we have been the highest offer at closing. The first we had to pull out of the sale as the mortgage company were retaining some of the money and at the time we could not afford it. The second was the worst off all, the EA phoned our solicitor by accident and told him we were the highest offer, a week later (almost to the hour) the mistake was discovered we were in fact the second highest offer and did not get the house.

Guy_Montag

Jo.1981 wrote:

Can someone please explain to me why in Scotland people can afford to offer so much over the asking price and why would they want to pay well over the odds for what it is on the market at. I know someone whose 1 bedroom flat was on the market at offers over £62k it went for over £100k. Some companies do offer 125% mortgages but I just do not get why someone would want to pay massively over what something is valued at.

My fiancée and I have been looking for a house for about a year and a half now are combined salary is not at all bad but we can afford to compete with these 'big spenders'. I get the feeling everyone wants to redevelop to make as mush money as possible and all I want is a nice wee house that we can start out life together in.

It's a different system, rather than advertising at the maximum price you want, you advertise at the minimum price you want (as recommended by your solicitor). People then bid over this (as recommended by their solicitor) the bank will fund a mortgage up to the value recommended by their solicitor (or something like that).

So you are not borrowing a 125+% of what the property value, you are borrowing x% of what the mortgage company thinks the place is worth (which is probably the close to what your solicitor thinks is a good price).

Malky

I'm with the OP on this one. I have no idea where all the money is coming from given that the average UK wage is just £23K. My wife and I earn close to the average but out of 3 lenders, the most we could have borrowed last year was £111K. Bare in mind that we had no debts either.

On another note,

A friend of a friend sold their house in Aberdeen recently. Was offers over £175K and some nutter bid £320K. Needless to say, the £320K bid was the highest.

Jo.1981

Malky wrote:

A friend of a friend sold their house in Aberdeen recently. Was offers over £175K and some nutter bid £320K. Needless to say, the £320K bid was the highest.

All I can say is......WHY?!!!!

Tiger_greeneyes

Sounds like they had no idea what they were doing!

I sold my house just outside Aberdeen last May and move to Suffolk for family reasons. Now I want to go back and I'm priced out of the market

I'll just have to sit tight and hope that the market where I live picks up enough for me to move back again.

jennifernil

Up here there are 3 "prices" for each house, The "offers over" price, the surveyors "valuation" price, and the actual price achieved. To my mind it is wrong that estate agents and solicitors are now marketing properties at prices so far below the valuation, presumably to drum up more interest. It is misleading to anyone not familiar with the market in the area, especially FTBs.

When looking in an area the first thing to ask an agent is how much over the OO price properties are going for, then you can calculate which price bracket to look at.

Or you could decide only to consider fixed price properties.

Remember the value of a property is what someone is willing to pay for it.

Jo.1981

jennifernil wrote:

Or you could decide only to consider fixed price properties..

In the last year and a half there has been 1 property on at a fixed price in the area we are looking in (and its not a small area), unfortunatly it was just a little to far away for us to really consider putting in an offer.

Tiger_greeneyes

jennifernil wrote: »

When looking in an area the first thing to ask an agent is how much over the OO price properties are going for, then you can calculate which price bracket to look at.

Excellent advice