How much over valuation to offer (Scotland)

Sammz

Aberdeen seems to be slowing down. One bed flats in my complex were going for up to £123k (I paid £55k two years ago). There has been one on the market for the last couple of weeks at £80k and no sign of a closing date.

SquatNow

Offer £1 more than the asking price. If there are no other bidders and the seller thinks it's too low they will quietly suggest what they are prepared to take.

If they don't take it, shop around doing the same thing. Buyers market, lots of places stood unsold. Plenty of distressed sellers. Someone will take the money.

moneysavinmonkey

remosquito wrote: »

Just been looking at the fixed price properties in the area (just outside Aberdeen). There are a couple of 2 bed flats with shared gardens and parking for 145k and 137k, and there is a 2 bed mid terraced house with garden and workshop for 150k.
.

presumably these are flats/houses which are still up for sale??
ie - they have not sold at this price
have you looked up actual sold prices?

IveSeenTheLight

Sammz wrote: »

Aberdeen seems to be slowing down. One bed flats in my complex were going for up to £123k (I paid £55k two years ago). There has been one on the market for the last couple of weeks at £80k and no sign of a closing date.

Aberdeen is certainly not slowing down.
It has just returned the highest HPI in all of Scotland.
I bought a flat at the beginning of the year and it has increased in valuation by 27% in 9 months.

Regardless of where you live, it really is Location, Location , Location.
I know some properties in Aberdeen which are under offer within a week of being advertised.

I know in Aberdeen the strategy has changed a lot when it comes to buying and selling. The example you give is of a property on the market at offers over £80k. I would not be shocked to find this is valued at above 100k. This is the solicitors / estate agents way of generating more interest and thereby more noted interests and pushing up the figure people are prepared to bid on.

Keep your eye on this property, if it is in good condition, I would expect it to go for around 130k.

I have found that in recent years, you really have to pay about 40 - 45% above the asking price. this will normally result in about 20-25% above the valuation

I like the system in Scotland as you bid and if you win you get the property, you cannot be gazzumped.

SquatNow wrote:

Offer £1 more than the asking price. If there are no other bidders and the seller thinks it's too low they will quietly suggest what they are prepared to take.

If they don't take it, shop around doing the same thing. Buyers market, lots of places stood unsold. Plenty of distressed sellers. Someone will take the money.

Unfortunately for most properties, this is not the case in Aberdeen (Scotland). I know many people recently who go into bids with many bidders, one this year had 17 bidders, another had 8 bidders.
In each of these cases, it shows there is still demand for property in Aberdeen.

When buying in Aberdeen, you have to decide on a figure which you think you can get the property for and you can afford the mortgage.
If you win, well done, if you dont, keep looking, you'll probably find something which suits you better

jackieb

I live in Scotland too (also up Aberdeen way) and i've also known houses to go for 40% over the offers over price. Normally it's about 15-20% though.

Whatever bid you go for, put in an odd amount. If you want to put in an offer of £100k for example, put the offer for £100,055 or something. You might just get that bid over somone else for that few £s extra. That's what we were told anyhow.

IveSeenTheLight

jackieb wrote: »

I live in Scotland too (also up Aberdeen way) and i've also known houses to go for 40% over the offers over price. Normally it's about 15-20% though.

Whatever bid you go for, put in an odd amount. If you want to put in an offer of £100k for example, put the offer for £100,055 or something. You might just get that bid over somone else for that few £s extra. That's what we were told anyhow.

I agree with the figures, about 40% above the asking price and 20% above the valuation.

Good advice about the odd numbers.
I previously won a house within 200 pounds.
My solicitor once told me he had a client win by 1 pound.

merlinthehappypig

IveSeenTheLight wrote: »

I like the system in Scotland as you bid and if you win you get the property, you cannot be gazzumped.

This is a commonly held misconception.

When your offer is accepted there is a period of two to three weeks for missives to be exchanged during which either party can pull out so offers are not binding as newspapers would have you believe.

Gazumping is entirely possible. We sold at 20% over asking price after going to a closing date. The next day, one of the unsuccessful bidders upped his offer to 25% over asking price. We were advised that despite going to a closing date there was no legal barrier whatsoever to going with the increased offer, we just had to change solicitors as it was 'contrary to custom and practice'. (In the end we stayed with the original buyer)

Even after the bargain is concluded (after missives have been completed) there is nothing to stop either party pulling out, but you can be sued for breach of contract. This isn't as easy or straightforward as it seems and, unlike in England, there is no instant compensation by way of a forfeited deposit, as deposits aren't part of the Scottish system.

Any significant change in the status of a local search after the bargain is concluded and before completion, gives a buyer the right to withdraw from the purchase penalty free.

There are elements in both English and Scottish systems which are good, but also some that are poor. The Scottish system certainly isn't the housebuying nirvana that it is widely held up to be.