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Slightly confused about flat pricing structure.

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QS36
QS36 Posts: 3 Newbie
in House buying, renting & selling
Basically I'm looking to buy a flat. There is one in particular that I like the look of, came onto the market on Friday. Got a viewing on Monday. Read the home report and everything was marked 1, no work needed. The flat itself looks in good condition from the photos but I need to check myself. The location is great and where I'm wanting to buy a flat. Regarding repairs unless it's anything major I can do it myself. If it's major I've got family members who can help with certain trade disciplines.

The thing that is puzzling me is the offer overs and market value on the home report.

Offers over £125,000.
Home report market value £150,000.

Why an earth is it so low compared to the market value am I missing something?
What type of offer do you make on a property with such a price difference?

In regards to purchasing it will be a cash buy so to speak so I can move pretty quickly.

Do I just ask the estate agent what the seller wants. I can pay £150,000 no problem but obviously I would want it cheaper, makes sense.

Thanks if anyone has any advice.

Comments

  • Car1980
    Car1980 Posts: 301 Forumite
    First Anniversary First Post Combo Breaker
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    I don’t understand what you mean by Home Report? If it’s advertised as offers over £125k you’d offer around 125.
  • pinklady21
    pinklady21 Posts: 870 Forumite
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    I assume this is Scotland? The agent has priced it low to attract interest from buyers which they hope will mean the eventual sale price will be a lot more than £125k. You can also bid lower than the H/R valuation, but you may have to increase your offer depending on what the seller's expectations are. Find out what other similar properties have recently sold for and how long they took to sell. Ask the owner / agent what their expectations are - although they are likely to say - around Home Report value. sorry - there really is no right or wrong answer to this one - you just have to offer what you think the property is worth TO YOU!
  • QS36
    QS36 Posts: 3 Newbie
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    Yes, it's Scotland. I just can't understand why you would have a gap of £25,000. Properties of similar type and size are selling for £155,000 so I just couldn't figure why you would have such a low offer over price when they are selling above market value price.
  • Slithery
    Slithery Posts: 6,046 Forumite
    First Anniversary Name Dropper First Post Photogenic
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    The more interest you have, the more bidders you'll get.
  • cr1mson
    cr1mson Posts: 891 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
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    Where is it? What does your solicitor say? Where I stay properties regularly go 20% over asking.
  • Owain_Moneysaver
    Owain_Moneysaver Posts: 11,359 Forumite
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    First thing is to Note Interest through your solicitor, and that should tell you how many other Notes of Interest have already been lodged.

    If there's more than yours it's quite likely the sale will go to a closing date and you'll be bidding against others between 125 and 155 (or more if there are people willing to pay above HR value)

    If there are no other Notes in then you might be in with a cheeky offer for a cash sale and quick entry.
    A kind word lasts a minute, a skelped erse is sair for a day.
  • resk
    resk Posts: 69 Forumite
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    Is it in the Aberdeen area? House prices are in decline there - it could be that the valuation was done in 2015 or 2016, and the seller is realistic about the price he or she can achieve? Check the date on the home report.
  • QS36
    QS36 Posts: 3 Newbie
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    It's Edinburgh city centre. My solicitor said to offer over the home report value to secure it.
    I see now what you mean about interesting a lot of viewers in.
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