Offers over Scotland question

Pixie5740

Thinking about it, I've never bought an o/o property in Scotland before, only ever fixed price properties and even then I managed to negotiate one to below the fixed price.

Now I'm thinking about buying somewhere in Aberdeen (maybe, possibly) where properties seem to go for a fair bit over asking. For example a friend sold a 1 bedroom flat valued at £115k for £135k last month. I also had an interesting conversation with a taxi driver recently about another 1 bedroom flat for sale valued at £153k but the vendor is holding out for £160k even though, by Aberdeen standards, it's been on the market for quite a while and the kitchen is so small you can only fit one person in it at a time. I digress.

The vendor has the home report done and the property is valued at £X. The property is then marketed at o/o £X. If you end up offering £X+10% is the mortgage LTV based on the home report valuation or the purchase price? If you had a 10% deposit would you also have to stump up the 10% over the asking price from your savings or could it be added to the mortgage?

agrinnall

Mortgage will be based on the valuation, if you're buying at a higher price then you'll need extra cash to do it.

Pixie5740

Thanks agrinnall, that's what I expected. Boo.

googler

agrinnall wrote: »

Mortgage will be based on the valuation, if you're buying at a higher price then you'll need extra cash to do it.

Seller's agent needs to give their client a reality check. If they want more than HR, they are severely restricting their buyer base.

JJG

googler wrote: »

Seller's agent needs to give their client a reality check. If they want more than HR, they are severely restricting their buyer base.

Not in Aberdeen. Although the drop in the price of oil is impacting employment in a big way up there.

bris

Supply and demand, there are still some areas that demand a premium, hot spots are rarer than the boom days but they do still exist.

Pixie5740

JJG wrote: »

Not in Aberdeen. Although the drop in the price of oil is impacting employment in a big way up there.

It is but it doesn't appear to have filtered down to the property market at the moment. I might just wait and see what happens in a few months time but I suspect there will still be some vendors who think they can easily achieve 15% over the valuation price as was happening last year. Mind you I have seen a few properties go to fixed price recently. I'll need to consult my Magic 8 ball.

I just don't like the idea of paying over the odds and starting off in negative equity. Luckily I'm happy enough with the place I'm renting so I can take my time.