Buying a flat in Edinburgh which needs renovation - still need to go way above home report value?

LondonToEdinburgh

Hi all, asking on behalf of my parents who are thinking of moving to Edinburgh where my siblings and I live. They have found a flat they like in a nice area (Morningside) which is structurally sound but the interior is quite dated and needs renovation. One builder estimated the work might cost about £60K in total. The Edinburgh housing market is unfortunately very competitive and it's common for homes to sell for up to 20% above the home report valuation (sometimes more!). Does anyone know if this is also the case for properties which clearly require renovation? Are lesser bids e.g. 10% more acceptable in these circumstances?

They are keen on this property and don't wish to miss out but they also don't want to needlessly overbid. Would be grateful for any advice or personal experiences!

Caz3121

How long has it been on the market? It is not uncommon for closing date to be set within a few days/couple of weeks and then sealed bids. 
If been on market some time then it may be worth a punt at an offer.

comeandgo

The home report will give the valuation on the property as it stands so offers still likely to go over but they should be guided by their solicitor who will know the market better.

AFF8879

Not hugely familiar with the Scottish system, but wouldn’t the fact it needs substantial renovation already be taken into account in the home report value? I.e. if you compared it to a similar size flat that’s already in good condition, how far apart are the values? If so then I would assume the standard level of  “offers over” would still apply. Of course that doesn’t mean that you CAN’T offer less.

Also, you say it’s nothing structural, but £60k seems like a huge amount for just cosmetic work on a flat. Is it in a listed building or something?

user1977

Properties requiring renovation attract a lot of bidders (you're competing against those looking to make a quick profit as well those who actually want to keep the property) - I wouldn't necessarily expect it to go for any lower a percentage over the valuation.

I found it useful to do some research looking at completed sales, to compare HR values with the ultimate selling prices.

koalakoala

Believe me  it will def go for over the valuation. Will probably go to a closing date. £60k isn't that much nowadays for renovations.
If they really want it they will have to offer accordingly. Every place they look at in that area will be the same.
Almost all go for more than the valuation