Introduction to Offers
This section related to making an offer on a property in Scotland. There may be alternative procedures in England and they will be covered in another Guide. Before we look at the different types of offer which are normally made in Scotland, it is worth while discussing the various marketing types which Estate Agents operate when selling a house as these will impact on the type , nature and timing of the offer.
The Asking Price.
In Scotland there are several types of asking price. Fixed, Offers Over and some times Offers in the Region of.
Fixed Price
When a property is on the market at a Fixed Price, it essential means that the first person to offer the fixed price without qualification such as, “subject to mortgage” or subject to “sale of existing property” will secure the property. A fixed price property may be taken off the market very quickly if a clean offer of the fixed price is received. Before viewing a fixed price property it is worth while asking the Estate Agency whether they have an offer under consideration before taking the time to view. As always, sellers may entertain an offer lower than the fixed price but there is no guarantee that your offer will be accepted.
Offers Over
If a property is being sold at an “offers over” price, it is normally offers over the Home Report Valuation. In this case, it is important that you minimise the amount you offer over the Home Report as your lender will only lend a percentage of the Home Report Valuation. Therefore, you will need to supply 100% of the purchase price over the Home Report and the Deposit for the property at the point of the sale. Speak to your estate agent, try to ascertain:
1 : How many people have viewed the property ?
2: Have there been any other offers ?
3: How long has it been on the market ?
4: Have the sellers purchased a property ?
These factors may assist you in arriving at an offer over price which is both reasonable and will be accepted by the seller.
In the Region of
This type of asking price is normally used when ascertaining the value of a property is difficult or there are factors affecting the property which would attract a certain type of buyer , eg : Developer, Etc. It is reasonably little used in Scotland at present but is gaining popularity.
The Closing Date
If an Estate Agent has several people interested in a property, they may call a closing date. A Closing date is an indication of a popular property, which is likely to achieve over the Home Report Price.
At a closing date and time all interested parties will be asked to make an offer, all offers are opened simultaneously and normally the highest offer is acceptable. If you are not successful there is no opportunity to increase your offer.
Making an Offer
The essential parts of an offer are
1: The Price
2: The Date of Entry
3: A list of moveables which you will be buying with the property
(Washing Machine, Dishwasher, Cookers Etc)
4: Any Conditional Qualifications “Subject to Mortgage” etc
Normally offers are accepted on the highest price, however there is no obligation on the seller to do so. May properties which have sentimental value or have been in families for many years are sold to prospective purchasers who the seller connects with, whos offer is not too far off the top price.
When you are at the viewing, speak to the sellers, find out their circumstances, they will normally be quite open and this information will assist you in formulating your offer.
When you are ready to offer, speak to your Solicitor, if you have not agreed a price with the seller, he can discuss matters with the Estate Agent and look at previous prices in that area. Advise you of a likely price band for the property.
All of the Solicitor on this site offer FREE Offers on all properties.
