Closing Date Scotland - How Much to Go Over HR

LCalvesbert98

Hi all, 

As the title explains, our solicitor is putting our offer in tomorrow, the house went into a closing date a few days after it went up. We viewed it and loved it, it is currently up for 110k offer over.

We were originally looking at houses between 150-170 but our offers always got rejected or we weren't able to go any higher (usually 5k over the HR).

As this house is completely off our budget, I'm not sure where to stop with the offer as it is in a closing date and we really want it.

Currently, I have advised my solicitor to put an offer in of 130k, is that too much? Too Little? 20k over seems like a home run to me.

Any input I would be really grateful.

Thanks in advance
Lewis 

fewcloudy

LCalvesbert98 said:

Hi all, 

As the title explains, our solicitor is putting our offer in tomorrow, the house went into a closing date a few days after it went up. We viewed it and loved it, it is currently up for 110k offer over.

We were originally looking at houses between 150-170 but our offers always got rejected or we weren't able to go any higher (usually 5k over the HR).

As this house is completely off our budget, I'm not sure where to stop with the offer as it is in a closing date and we really want it. - Do you mean it is completely within your budget?

Currently, I have advised my solicitor to put an offer in of 130k, is that too much? Too Little? 20k over seems like a home run to me. - I don't know what home run means, is it a good thing or a bad thing?

Any input I would be really grateful.

Thanks in advance
Lewis 

I would expect that you already know exactly what every other similar property in the area sold for in the last year, and would therefore base my offer on that. If clueless I would ask my solicitor for their advice/opinion. Houses are going for between 10-30% over the HR valuation so maybe you're about right.

LCalvesbert98

fewcloudy said:

LCalvesbert98 said:

Hi all, 

As the title explains, our solicitor is putting our offer in tomorrow, the house went into a closing date a few days after it went up. We viewed it and loved it, it is currently up for 110k offer over.

We were originally looking at houses between 150-170 but our offers always got rejected or we weren't able to go any higher (usually 5k over the HR).

As this house is completely off our budget, I'm not sure where to stop with the offer as it is in a closing date and we really want it. - Do you mean it is completely within your budget?

Currently, I have advised my solicitor to put an offer in of 130k, is that too much? Too Little? 20k over seems like a home run to me. - I don't know what home run means, is it a good thing or a bad thing?

Any input I would be really grateful.

Thanks in advance
Lewis 

I would expect that you already know exactly what every other similar property in the area sold for in the last year, and would therefore base my offer on that. If clueless I would ask my solicitor for their advice/opinion. Houses are going for between 10-30% over the HR valuation so maybe you're about right.

Thanks for your reply.

Certainly, I have looked at all recently sold houses in the area that we are looking to buy and there are a few identical houses that are around the corner from the property we are looking to buy, that were sold in May and June of this year for 128k and 129k respectively, however the main difference between these two houses and the house we are looking to buy are, they both have front gardens, and a garage and are in noticeably better condition inside. 
With this in mind, that is how I came to the conclusion that offering 130k for the house we want to purchase is a sound offer. 

Yes sorry I meant completely within our budget, we have a lot of room is what I meant.

Home Run as in I don't see how 20k over the HR wouldn't be the winning offer. 

Have you got statistics on the 10-30% over HR? I would be grateful as I'll love to see the area we want to buy in.

fewcloudy

LCalvesbert98 said:

fewcloudy said:

LCalvesbert98 said:

Hi all, 

As the title explains, our solicitor is putting our offer in tomorrow, the house went into a closing date a few days after it went up. We viewed it and loved it, it is currently up for 110k offer over.

We were originally looking at houses between 150-170 but our offers always got rejected or we weren't able to go any higher (usually 5k over the HR).

As this house is completely off our budget, I'm not sure where to stop with the offer as it is in a closing date and we really want it. - Do you mean it is completely within your budget?

Currently, I have advised my solicitor to put an offer in of 130k, is that too much? Too Little? 20k over seems like a home run to me. - I don't know what home run means, is it a good thing or a bad thing?

Any input I would be really grateful.

Thanks in advance
Lewis 

I would expect that you already know exactly what every other similar property in the area sold for in the last year, and would therefore base my offer on that. If clueless I would ask my solicitor for their advice/opinion. Houses are going for between 10-30% over the HR valuation so maybe you're about right.

Thanks for your reply.

Certainly, I have looked at all recently sold houses in the area that we are looking to buy and there are a few identical houses that are around the corner from the property we are looking to buy, that were sold in May and June of this year for 128k and 129k respectively, however the main difference between these two houses and the house we are looking to buy are, they both have front gardens, and a garage and are in noticeably better condition inside. 
With this in mind, that is how I came to the conclusion that offering 130k for the house we want to purchase is a sound offer. 

Yes sorry I meant completely within our budget, we have a lot of room is what I meant.

Home Run as in I don't see how 20k over the HR wouldn't be the winning offer. 

Have you got statistics on the 10-30% over HR? I would be grateful as I'll love to see the area we want to buy in.

Not statistics as such, more observations and reading.

Example below that someone in my immediate family just missed out on recently...

https://housesforsaletorent.co.uk/property/for-sale/3-bedroom-detached-bungalow-for-sale-in-33-silverknowes-terrace-silverknowes-edinburgh-eh4/522831/

https://espc.com/property/33-silverknowes-terrace-edinburgh-eh4-5hj/36012908

So asking price was offers over 425k, sold for 541k
I make that about 27% over

On ESPC it's easy to see recent sold prices, and it's also easy to type in an address of a recent sale to see the asking price.

But it sounds like you are doing all the right things and yes, 20k over sounds like it could be a Home Run to me too! Good luck!

theoretica

£20k over and £130k total is a rather round number - I would be tempted to go for £130,100 or something - just incase someone else has a similar idea!

Gers

theoretica said:

£20k over and £130k total is a rather round number - I would be tempted to go for £130,100 or something - just incase someone else has a similar idea!

I received an offer last month which  was £***********.2p (stars aren't indicative of the offer)

This was by far the best of the five I received, the 2p didn't make a difference though it shows what buyers do!

user1977

Gers said:

theoretica said:

£20k over and £130k total is a rather round number - I would be tempted to go for £130,100 or something - just incase someone else has a similar idea!

I received an offer last month which  was £***********.2p (stars aren't indicative of the offer)

This was by far the best of the five I received, the 2p didn't make a difference though it shows what buyers do!

I was hoping you'd say they lost out to somebody who bid £*******.03

ProDave

theoretica said:

£20k over and £130k total is a rather round number - I would be tempted to go for £130,100 or something - just incase someone else has a similar idea!

Good advice.  Years ago when buying a flat, we offered £40,250 and our bid was successful, we believe the £250 may have clinched it.

theoretica

I lost out on one property by £598...

Trynsave2

LCalvesbert98 said:

Hi all, 

As the title explains, our solicitor is putting our offer in tomorrow, the house went into a closing date a few days after it went up. We viewed it and loved it, it is currently up for 110k offer over.

We were originally looking at houses between 150-170 but our offers always got rejected or we weren't able to go any higher (usually 5k over the HR).

As this house is completely off our budget, I'm not sure where to stop with the offer as it is in a closing date and we really want it.

Currently, I have advised my solicitor to put an offer in of 130k, is that too much? Too Little? 20k over seems like a home run to me.

Any input I would be really grateful.

Thanks in advance
Lewis 

Whilst you have to be comfortable in whatever you offer, how much do you like it when compared to the others you have offered on and failed to secure? Whilst I hear that similar have sold just under £130k, if you don't get this one how much extra do you think it will take to secure the next property you are willing to offer on?

If this property is the best you've seen (or at least in your top 3), would it be worth paying over the odds just to secure it? Likely as not, if you think it's a good buy right now so will others. If you don't secure it at £130k, how long will it take to save to afford for an alternative as you say your bids to date haven't been high enough? If you are you in rented now how much extra rent will you be paying in that time? Is it in a better location? Cheaper transport to work etc? Also buy now and you just might be in for Christmas. Wait much longer to find the next home and it'll definitely be into 2022.

Also for the two round the corner you mentioned, what prices are you quoting? Is it their official sold price ie perhaps they were valued and listed before the recent madness ensued, or were they were listed and quickly sold May/June, but no firm figures are yet known?

We don't know your local market like you do. Therefore if you're comfortable with £130k and that's how much it's worth to you, then stick with it. Personally, if I really liked it, and no-one should offer on something they don't, I'd go in at my budget, or may £145k, knowing that I was unlikely to find anything cheaper so would be spending that down the road anyway.

sheramber

If it has gone to a closing date within a few days then there must be several notes of interest/offers.

I bought at the end of last year and paid £!80,125 for a house with home report value £160.000.

I was successful against another bidder as I was flexible about entry. The seller wanted entry on 4 weeks.

While I think the price was high, somebody else was prepared to go to that price. Probably for the same reason as I did. Properties in this town are still selling within days.

I wanted the house as it was close to my family- the reason I  was moving so I was limited to area- and I had  previously  been outbid on other properties.