House valued at £120k by Home Report, but its listed as offers over £110k

Legacy_user

Why do you think this is? Do you think the owners are looking for a fast sale?

carolpinkdreamer

Yes!

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stator

Possibly. It's entirely possible for valuations to be wrong.
I'm always weary of "offers over" it means they still want more money, so they might be putting it on at 110k just to get interest and get people into a bidding war closer to what they will accept.

System

And also, what would you offer for it? It needs a small bit of work done inside

haras_nosirrah

Talking about home reports I am guessing this is Scotland

Personally I would not offer anything at all on the basis of having no desire to live in Scotland and not having seen the house

I am guessing op that you have seen the house and are interested in living in it so the question is, based on your research, how much do you think the house is worth and how much are you prepared to pay for it?

googler

Offers Over was traditionally used in Scottish sales to encourage competitive bidding. At the time, buyers commissioned their own surveys, and the valuations could differ between surveyors. At one stage, valuations were routinely carried out before making offers, and the prospective buyers would offer based on their own valuation and the amount of cash or equity they could put into the deal. If one surveyor valued the property at £5,000 higher than the next, the buyers working on their behalf had an extra £5,000 to play with when offering.

A change occured when solicitors in certain areas started making offers 'subject to survey'. In these areas, buyers would offer sts, and the winning bidder, if there was competitive bidding, would get their survey done after the offer was accepted. If the surveyor broadly concurred that the offer price was realistic, the property 'surveyed up' and the sale proceeded. If not, and the buyer couldn't renegotiate, they withdrew, and the property went back on the market.

These days, the single survey/Home Report is carried out before the property goes on the market. Once an offer is accepted, the buyer ensures their lender will accept the HR, and they get lending to either the offer price, or the valuation in the HR, whichever is lower. Lenders don't (tend to) lend over valuation

The crucial factor, therefore, is not whether or not the owner is looking for a 'quick sale'.

You, the buyer, need to look at the HR valuation and decide if, in light of any competing interest, you need to (and can afford to) offer over the HR valuation. This will depend on the cash and/or equity you have in hand. If you have none beyond the deposit required by your lender, you won't be able to offer over the HR valuation. If you have a spare £5,000, you need to decide if you need or want to go up to £5,000 over HR.

Why are the owners marketing at an Offers Over price? To encourage competitive bidding, same as it always was.