“Offers Over” confusion

Newcomer1234

Having just put a property on the market I can share my experience.
Valuation for IHT  was £400k
Homebuyers Report gave a mortgage valuation of £370k
Property was put on market at offers over £335k
Went to sealed bids and offers were between £400k and £410k
We were told that the norm is to put the property on the market as offers over - and use mortgage valuation from report figure less 10% and that we should not expect to be offered less than 10% over the mortgage valuation.

I guess when you are used to it then getting your head round it is easy but for a sassenach who is used to offering less than the price it goes on the market for its confusing!

user1977

MobileSaver said:

cymruchris said:

I've seen several showing 'offers over' where the vendor would take a considerable offer under.

In the rest of the UK that's quite possible but in Scotland (where the OP is based) that would be very unusual - very few properties sell for less than the 'offers over' price and most sell for at least the Home Report valuation which will be even higher.

Not so sure about "very few" - if the market isn't hot for a property then it's pretty common to sell for less, you can see properties on at fixed prices and trumpeting the fact they're at "£x under Home Report value" (which suggests the HR is wrong!).

Though sounds like the OP is buying somewhere bound to go to a closing date so will probably need to offer a fair bit above HR value.

RHemmings

Cairnpapple said:

RHemmings said:

If it's on for 'offers over £100k' and you offer £110k, how could they not take you seriously? I'd expect them to take you seriously at £100k, and the longer the house has been on the market the more feasible it is to offer less than £100k. 

This is independent of what the true value is. Surely nobody would put a house up for 'offers over £100k' when the true value is £150k and they expect that or more? 

There have certainly been times and places in the Scottish housing market where 'offers over £100k' would mean that you wouldn't consider anything below £120k or £130k. 'Offers over' is a longstanding convention here and not always particularly logical. 

The existence of the home report (single survey) has moderated things somewhat at the lower end as the home report value determines how much the buyer can get a mortgage for. 

If the property was genuinely on for £100k in my locality it would be a small flat which are selling, but not super fast, so I'd probably split the difference and offer £105k in the first instance, assuming there was no closing date set. But your solicitor is always going to be the best source of information. Beware of advice from friends/family that is based on a different time and/or a different location as the market can be very localized. 

I must admit that unless there is something in the post to specify another region of the UK, I tend to assume England. I've noted however that many threads have a second post that asks for the region.

sheramber

RHemmings said:

Cairnpapple said:

RHemmings said:

If it's on for 'offers over £100k' and you offer £110k, how could they not take you seriously? I'd expect them to take you seriously at £100k, and the longer the house has been on the market the more feasible it is to offer less than £100k. 

This is independent of what the true value is. Surely nobody would put a house up for 'offers over £100k' when the true value is £150k and they expect that or more? 

There have certainly been times and places in the Scottish housing market where 'offers over £100k' would mean that you wouldn't consider anything below £120k or £130k. 'Offers over' is a longstanding convention here and not always particularly logical. 

The existence of the home report (single survey) has moderated things somewhat at the lower end as the home report value determines how much the buyer can get a mortgage for. 

If the property was genuinely on for £100k in my locality it would be a small flat which are selling, but not super fast, so I'd probably split the difference and offer £105k in the first instance, assuming there was no closing date set. But your solicitor is always going to be the best source of information. Beware of advice from friends/family that is based on a different time and/or a different location as the market can be very localized. 

I must admit that unless there is something in the post to specify another region of the UK, I tend to assume England. I've noted however that many threads have a second post that asks for the region.

"Homebuyers  report"  is the clue that it is Scotland

user1977

sheramber said:

RHemmings said:

Cairnpapple said:

RHemmings said:

If it's on for 'offers over £100k' and you offer £110k, how could they not take you seriously? I'd expect them to take you seriously at £100k, and the longer the house has been on the market the more feasible it is to offer less than £100k. 

This is independent of what the true value is. Surely nobody would put a house up for 'offers over £100k' when the true value is £150k and they expect that or more? 

There have certainly been times and places in the Scottish housing market where 'offers over £100k' would mean that you wouldn't consider anything below £120k or £130k. 'Offers over' is a longstanding convention here and not always particularly logical. 

The existence of the home report (single survey) has moderated things somewhat at the lower end as the home report value determines how much the buyer can get a mortgage for. 

If the property was genuinely on for £100k in my locality it would be a small flat which are selling, but not super fast, so I'd probably split the difference and offer £105k in the first instance, assuming there was no closing date set. But your solicitor is always going to be the best source of information. Beware of advice from friends/family that is based on a different time and/or a different location as the market can be very localized. 

I must admit that unless there is something in the post to specify another region of the UK, I tend to assume England. I've noted however that many threads have a second post that asks for the region.

"Homebuyers  report"  is the clue that it is Scotland

The word "Scotland" in the OP was the clue that it is Scotland...

sheramber

user1977 said:

sheramber said:

RHemmings said:

Cairnpapple said:

RHemmings said:

If it's on for 'offers over £100k' and you offer £110k, how could they not take you seriously? I'd expect them to take you seriously at £100k, and the longer the house has been on the market the more feasible it is to offer less than £100k. 

This is independent of what the true value is. Surely nobody would put a house up for 'offers over £100k' when the true value is £150k and they expect that or more? 

There have certainly been times and places in the Scottish housing market where 'offers over £100k' would mean that you wouldn't consider anything below £120k or £130k. 'Offers over' is a longstanding convention here and not always particularly logical. 

The existence of the home report (single survey) has moderated things somewhat at the lower end as the home report value determines how much the buyer can get a mortgage for. 

If the property was genuinely on for £100k in my locality it would be a small flat which are selling, but not super fast, so I'd probably split the difference and offer £105k in the first instance, assuming there was no closing date set. But your solicitor is always going to be the best source of information. Beware of advice from friends/family that is based on a different time and/or a different location as the market can be very localized. 

I must admit that unless there is something in the post to specify another region of the UK, I tend to assume England. I've noted however that many threads have a second post that asks for the region.

"Homebuyers  report"  is the clue that it is Scotland

The word "Scotland" in the OP was the clue that it is Scotland...

So 2 clues

RHemmings

Whoops, sorry all. Quite jet-lagged right now.