Offers over and home report valuations..

19lottie82

so what is the full asking price if they are looking for offers OVER £125?

googler

19lottie82 wrote: »

so what is the full asking price if they are looking for offers OVER £125?

That IS the asking price. And it's Offers Over £125k or £125,000, not £125.....

For many years, it has been the custom in Scots house sales to invite offers over a certain figure, sometimes known as the 'upset' price, and couched in terms of "Offers Over £X". If a number of buyers are seriously interested, and there's a healthy market, it can result in big dividends for the seller.

This practice has become rarer with the introduction of Home Reports, which are provided upfront with a surveyor's valuation, and are intended to suffice for the buyer's mortgage lending valuation.

Chimpofdoom

googler wrote: »

This practice has become rarer with the introduction of Home Reports, which are provided upfront with a surveyor's valuation, and are intended to suffice for the buyer's mortgage lending valuation.

Yup my solicitor said that it was probably placed as "offers over" to chance their luck and that they were looking for 125k.

But she checked out the average house prices for that area and it seems to be at 120k or lower.

My second offer which was 121k has been knocked back, as they reiterated that they wanted 125k. Apparently they've had "lots of interest" but no one else has placed an offer or put a note of interest in, so my solicitor has advised to hold fire, go check out some other properties.

The game continues

googler

In days gone by, standard practice was to place a property on the market with an Offers Over price, and if there were no takers in a certain time frame, to 'go to Fixed Price'

For instance, start off at Offers Over £125k; if, in the area you're selling in, houses of this type have been selling for just over £130k, and have typically been selling at 10% over their Offers Over price, you might get competing attention at £132.5k or so, or might get up to £135k or so on a good day.

If it didn't sell in 4-6 weeks or so, the price might be changed to a Fixed Price of £130k or so.

But as I say, much of this is rendered moot by the Home Reports System.

googler

Chimpofdoom wrote: »

Apparently they've had "lots of interest" but no one else has placed an offer or put a note of interest in....

So they've had lots of phone calls, requests for schedules, views on their website, but no firm interest.....

Chimpofdoom

googler wrote: »

So they've had lots of phone calls, requests for schedules, views on their website, but no firm interest.....

Pretty much and possibly one other viewing other than mine..

It'll be interesting to see how long they hold off for that 125k. Even the bank has said they won't get that for it, as who will want to pay stamp duty?

rpc

There is no SDLT due if it sells for £125k. If it sold for £125,001 then SDLT would be due.

It seems a little odd, in the current market, to reject an offer just in case you get another £4k later on. Sit tight and maybe they will come back to you. They obviously have an optimistic view if they think that they can get it for over HR valuation!

Chimpofdoom

rpc wrote: »

It seems a little odd, in the current market, to reject an offer just in case you get another £4k later on. Sit tight and maybe they will come back to you. They obviously have an optimistic view if they think that they can get it for over HR valuation!

Yeah, that's my solicitors view. The solicitor has basically said, the last property that has similar specs (but at the bottom of the road) sold for 4k under the asking price.

But to be sure, we'll go line up viewings with our "Plan B's" and see what happens then!