Advice please FTB in Scotland

Violetta_2

Hi, any advice would be appreciated. We are first time buyers & finding everything a bit daunting. We have seen somewhere we like & are going for a 2nd viewing tomorrow any advice as to what to look out for.
Also the house was put on the market at offers over 95000 a month ago then reduced this week to offers over £90000 now the estate agency when they rang to arrange the viewing were adamant that their policy ie offers over mean's it has to be offers over, nothing below, is this BS it is an online estate agency,a very fast one ee (sorry to be cryptic) or will a lower offer be considered by the seller & they are just pushing it?
The whole offer thing is so confusing to me & it's so different to England that I'm struggling to figure it out.
Thanks in advance.

I_have_spoken

The vendor may have instructed the EA not to pass on offers under a certain value. But you are free to submit an offer at the amount you think the house is worth.

What is the valuation in the Home Report - I assume you've received this?

tberry6686

If by a fast one you mean an online estate agent that aims to sell quickly, then I suspect I know the one you mean. If so then they are well known for advertising properties at low figures when they will never accept an offer anywhere near that figure.

Depending upon where it is in Scotland then offers over may well mean that, in most areas though it is BS.

It makes no difference what the estate agents policy is. If they refuse to pass any offer on to the seller (unless the seller has specifically told them not to) then they are breaching estate agent rules (not sure if it is law though)

Violetta_2

The area is in my location tberry. think you are correct re the ea. I'm not even sure how we submit an offer & there doesn't seem to be quite the same negotiation process up here.
I have spoken-the valuation in the home report is £100000.

I_have_spoken

Dundee prices seem to have risen a wee bit this year, so priced at 10% under Home Report isn't totally unreasonable, although I hope the seller's have now finished building the garage

I'm not even sure how we submit an offer

You should be choosing a solicitor who'll make the formal offer and negotiate things like entry date and anything else on the contract before "exchange of missives"

Violetta_2

Well done Sherlock meant as a compliment), no it isn't finished but that issue is mentioned on the home report, what did you think of the place? I don't think the pictures do it justice but wonder if I'm looking at it through rose coloured glasses.

googler

As an FTB, assuming you don't have piles of money with which to increase your deposit on your mortgage, the valuation in the Home Report (if accepted by your lender) will determine what you can borrow, and therefore what you can offer. What's the valuation in the HR?

If you like the house and want to make an offer on it, hire a solicitor. You can't make an offer without one. Don't indulge in back-and-forth with the EA, decide what you want to offer and get your solicitor to make the offer in writing. From there on, let the solicitor negotiate, if needed, with the EA.

googler

Violetta wrote: »

The whole offer thing is so confusing to me & it's so different to England that I'm struggling to figure it out.
Thanks in advance.

Tell us exactly what aspects you find confusing, and we'll try and clarify for you.

Violetta_2

googler wrote: »

As an FTB, assuming you don't have piles of money with which to increase your deposit on your mortgage, the valuation in the Home Report (if accepted by your lender) will determine what you can borrow, and therefore what you can offer. What's the valuation in the HR?

If you like the house and want to make an offer on it, hire a solicitor. You can't make an offer without one. Don't indulge in back-and-forth with the EA, decide what you want to offer and get your solicitor to make the offer in writing. From there on, let the solicitor negotiate, if needed, with the EA.

The valuation is £100000, we looked at it at offers in excess of £95 & decided it needed too much doing (which is specified in the home report) to be able to afford that. I emailed the EA on Sunday to let them know we couldn't afford it with everything that needs doing, have not even had my email acknowledged then got a notification via rightmove re changes & new houses in my search area & noticed the price had been dropped to offers in excess of £90. I did like the house on the first viewing for the rooms & the space outside, unfortunately like a lot of houses up here it has ugly grey/brown harling, but I can live with that.
We can afford 15% deposit.

googler wrote: »

Tell us exactly what aspects you find confusing, and we'll try and clarify for you.

Well the mortgage we have earmarked is with Nationwide & has free standard legal fees?? But I take it being up here we will need a solicitor anyway so we can submit the offer. From what I can make out where as in England you can increase an offer if it is rejected, it seems more difficult up here & whilst I don't want to miss out I also don't want to pay more than I have to it's an inbuilt MSE thing.

HAMISH_MCTAVISH

Violetta wrote: »

think you are correct re the ea. I'm not even sure how we submit an offer & there doesn't seem to be quite the same negotiation process up here.

First thing to do is forget about trying to negotiate with the EA.

Appoint your solicitor, and get them to start the process of making a written offer.

Putting aside for a moment the possibility that this 'speedy sale' EA is perhaps the one rumoured to frequently advertise 'lower than will be accepted' pricing......

What you're after is the home report valuation, and from that you can decide the basis for your offer, but make sure it was done by a local surveyor who knows the market and not one of the 'long distance' mobs.

You'll also need to be sure that the surveyor is on your banks approved panel if the HR value is to be accepted for lending purposes, otherwise another valuation will be needed.

Your solicitor should be able to advise you on all these points, and also provide recent comparable local sale prices, from which you can start thinking about what the house is worth and what your offer should be.

In general terms, the Scottish system is pretty easy to understand.

-'Offers Over' will usually mean what it says. Chances are the property is advertised below the HR valuation in order to attract interest.

-'Fixed price' usually means you can negotiate and offer lower. This will often be a house that has previously been advertised at a lower offers over price and failed to sell, so the vendor is sgnalling their willingness to negotiate and make a deal, but starting the negotiation point at around or sometimes higher than the HR valuation.

-'Offers in region of' will usually be bang on the HR valuation, and the vendor is saying they will negotiate a little bit, (perhaps a few percent) but not much.

Of course, in these days of a depressed economy and housing market, there are far more exceptions to the rule than there used to be.

So the important thing is to know what the Home Report valuation is, know comparable recent sale prices, and realise everything else to do with pricing is just a marketing strategy.

It's not uncommon in some parts of Scotland to see houses selling for below the O/O price these days. However in other more prosperous areas you still see houses selling for significantly above the O/O price.

As in England, the type of asking price is not of much relevance, the valuation and comparable recent sales in the area are what will determine most offers.

HAMISH_MCTAVISH

Violetta wrote: »

I take it being up here we will need a solicitor anyway so we can submit the offer.

Yes.

The solicitor will take on the entire process for you, from first offer to conclusion of missives.

in England you can increase an offer if it is rejected, it seems more difficult up here

Not at all.

Most solicitors will quote you a fixed price including making multiple offers on your behalf.

You can easily start low, and make incrementally higher offers until one is accepted, and it shouldn't cost you anything extra.

& whilst I don't want to miss out I also don't want to pay more than I have to it's an inbuilt MSE thing.

No reason to.

You can certainly start with lower offers up here if you wish, and then increase if rejected.