Offers Over Scotland - Advice

the_estimator

Hi,

We are about to put our home on the market and were wondering what is a reasonable offers over price to submit to the estate agent.

The home report is currently at £128,000 and the estate agent is advising us to put it on for offers over £119,000.

I appreciate that there is a number of variables but does this seem reasonable? We were thinking more along the lines of offers over £125,000.

Thanks

googler

Why does he suggest this? Have you asked?

Are you saying you are unwilling or unable to sell at below £125,000, or do you have flexibility?

HR is £128,000. How does this compare with sales of similar properties in recent times? How does this compare with anything similar currently on the market in your area?

davidmcn

Depends on the local market really - in some places you're likely to go to a closing date in which case the bidding will probably go above the HR figure. In a slower market you're more likely to be haggling at a figure below the HR figure. I think these days the asking price is less important than the HR valuation anyway.

the_estimator

The estate agent has suggested that this would help generate interest, and yes you are correct, we would not accept anything under £125,000.

Next door went for £128,500 a couple of years ago and I live in a fairly popular estate.

The thing that worries me about offers over £119K is that we get a lot of bids under £125K which realistically we would not be willing to accept.

googler

the_estimator wrote: »

The estate agent has suggested that this would help generate interest, and yes you are correct, we would not accept anything under £125,000.

Have you told the EA this?

The thing that worries me about offers over £119K is that we get a lot of bids under £125K which realistically we would not be willing to accept.

You've answered your own question, then. Perhaps O/O £126,000, and if someone still wants to go below this, you have wiggle room before you're at your minimum.

Or Fixed Price £127,000. Discounted against HR, but if you get the FP, you're still £2,000 over your minimum

At the end of the day, lenders will lend up to the HR value. If someone wants to go over this, they have to have the extra cash in hand to put into the deal. So that effectively forms the maximum anyone can bid, apart from the cash-rich buyer

mvteng

the_estimator wrote: »

The thing that worries me about offers over £119K is that we get a lot of bids under £125K which realistically we would not be willing to accept.

Not sure why that worries you. The solicitor will know the local market & know what properties sell for.

if you get offers at 10% over , then that falls exactly into your target price

glasgowdan

Generally speaking, Scottish homes are marketed at offers over around 10% under the home report value. Buyers know this and will have an idea what you're looking for. 125 would be a sensible offer for anyone who sees o/o 119, so I wouldn't worry about getting too many lowball offers due to this.

This is what the Scottish market is like and it's perfectly normal. I agree with what the Estate Agent has suggested.

scottishgirl87

Would agree with glasgowdan. We sold our flat in September with offers over £149k and a Home Report value of £165k. We were told 10% below is pretty much standard.

theartfullodger

Offers over means nothing, just a wish that the punter will bid high.

I went after a house with offers over £xxk (18 years ago). I bid a lot under. Got the most fierce upset refusal from vendor via estate agent I've ever had. Thanked them politely: 5 days later I repeated my original offer: It was accepted, still own it, Scotland.

glasgowdan

theartfullodger wrote: »

Offers over means nothing, just a wish that the punter will bid high.

Perhaps true if you buy an undesirable house/location. If you start looking at the housing market now, though, you'll see things have changed and offers over is the norm.

theartfullodger

.. tsk tsk dan, you could have been bidding so much lower eh?