*Scotland* how much do we offer?

LS1981

Hi, I’m trying to find out how much is to much or not enough to offer on a property. The house we want has went to a closing date, this will be the 3rd time we have been here. 1st time we offered too low, second time the we didn’t put a note of interest and it sold on the second day of being on the market. We are now hoping it’s 3rd time lucky, we put an offer in which got rejected and has now went to a closing date. Without completely spending all of our savings do we put in 10% of the offers over price or the home report or do we just offer what we think it’s worth and hope for the best?? TIA

Susan.B

Where are you buying? 

The Glasgow market will be much different from that on the very North Coast. 

I’ve done a lot of research as we are looking as well and I think a lot comes down to this: 

A) if this is your “forever home” - IE you don’t plan on moving again until you’re old and downsizing etc, then the question is less “what monetary value it holds” and more of “what is the maximum we are willing to pay for this house” 

if this is the case, and 10% over is what you can afford / the highest you wish to go, then if that’s not good enough you’ll have to swallow the pill and move in, hard as it is I’m afraid. 

If this is a “stepping stone” house; IE you wish to move in a few years I would suggest a much more cautious approach in order that you don’t lose more money than you are willing too - if you pay 20% over and sell in 5 years it is unlikely you will recoup this cost, for example. 

Ultimately it comes down to the local market. Research houses sold in the local area and speak to your local solicitor who will know the market better.

Your solicitor can tell you how many other folk have notes of interest in which also should help your decision! 

Good luck, this is a horrible time to be a buyer! 

Slithery

Where abouts in Scotland?
In Edinburgh for example it's not unusual for properties to go for 20% more than the home report value.

theartfullodger

You bid what it's worth to you.  Where it is is less important.

comeandgo

You offer what you think it’s worth to you.  You have the value on the home report so you will know what you need to find over the mortgage value so no offering high and hoping to re negotiate after valuation as seems to be done in England.  You should ask your solicitor what the usual percentage over is for the area you are buying in.

googler

You offer what you think it's worth, what you want to pay, what you can afford. 

Nobody can tell you this. 

If you're buying in one of the cities, your solicitor should be someone active in that local market, and should be advising you on this, IF you want to modify your previous offer and be considered at closing.

Your initial offer was rejected. What was this offer, in comparison to both the HR value and the asking price? Equal? Above? Below?

Did the seller go to closing after rejecting your offer?  Did they explicitly reject your offer totally, or are they regarding it as still on the table to be considered at closing with any others they receive? 

theoretica

Do you know how much property 1 sold for compared to the home report price?  Whether you were 15th of 17 offers or 2nd of 3 can give you useful clues about the market in your area.