Offer on a property in Scotland - First Time Buyer

googler

You're using the same solicitor as they're selling with?

Isn't that a conflict of interest for them?

missile

Aberdein Considine are not a solicitor I would recommend and I would never use the same solicitor as the seller.

Not sure how much the improved offer should be though.

That house is advertised at offers OVER £249 and you come in with a very cheeky £225. I am not surprised your offer was rejected.

matrix1781

It is a big company and apparently as long as the partners that are dealing with seller and buyer are different, it is OK.

missile

For info > http://www-g.aspc.co.uk/cgi-bin/public/LiveProperty/298111?ID=ACHNJOME#picture

matrix1781

Thanks again missile. i admit that the offer was little on the lower side but the property has been on market for 5 months, the market is slow, i was the only one to note interest, i am compromising on the size of the living room and house price indices show drop in house prices.

Considering all the factors, i am guessing it was OK to offer that amount. I need to make my improved offer now

googler

matrix1781 wrote: »

It is a big company and apparently as long as the partners that are dealing with seller and buyer are different, it is OK.

It may be 'OK' in that the law society accept it, but honestly - are you really going to get a partner truly working in your interest when he's 'negotiating' with his colleague in the next-door office, under the same firm's roof....?

missile

Sorry my comment was tactless.

Of course you should offer no more than you feel the property is worth. If you do choose to increase your offer, I would suggest you make it clear to the solicitor that is your final offer and if it is not acceptable you have a.n.other properties to view.

As you will be aware £250,000 is a stamp duty threshold. If you buy near it, when you come to sell it will be very difficult to break that ceiling price.
Good luck :beer:

tberry6686

matrix1781 wrote: »

By the way, the property has been on the market for more than 5 months now and the valuation was done in April. From my research the house prices have dropped more than 5% in this time period in aberdeenshire. Is this correct?

depending on where in Aberdeenshire this is not correct. a few places have seen drops like this but in the main most have held steady with a few increasing.

£249k looks reasonable for the house and area, definitly not £25k over.

Doubt if they would sell for less than £245k unless they really have to.

matrix1781

Offer of around 239 was rejected. Although I could go up to 242, I am not sure if I should. Even if I buy the property at 242, I will be struggling to sell it for more than 250 in 4 years due to the stamp duty limits...may be they should look at a slab system for stamp duty not to disadvantage properties around 250 k mark

googler

There's no guarantee that SD will be the same in 4 years time (are you already planning to move on after that time?), so I wouldn't necessarily base your offer on that projection..... the Govt may see sense, and we may not have to contend with a 200% jump in SD at the £250k point in four years' time.

Surely all that matters is whether you pay SD now or not?