The "offers over" system is a defining feature of the Scottish property market, and it often takes new buyers by surprise. Unlike fixed-price sales, this approach involves competitive bidding, requiring buyers to strategically navigate the process to secure their desired property. Here's a detailed look at how this system works and how to approach it effectively.
What Does "Offers Over" Mean?
When a property is listed with an "offers over" price, this indicates the minimum amount the seller is willing to accept. However, this is just the starting point, as buyers are generally expected to bid higher than the listed price. The exact amount to bid depends on factors such as market conditions, property demand, and the valuation provided in the property’s Home Report.
The Home Report, a mandatory document in Scotland, includes:
This system provides transparency by offering buyers essential insights into the property before they submit an offer. Still, it requires careful planning and research to decide on an appropriate bid.
Making an Offer
The process of making an offer in Scotland differs from other parts of the UK, and it requires preparation and strategy. Here's how to approach it:
Look at recent sales of similar properties in the area to gauge the market. This can provide a baseline for how much you might need to bid above the "offers over" price. Consider factors such as the property’s size, condition, and location when comparing.
In highly sought-after areas or for particularly desirable properties, offers can significantly exceed the asking price.
Beyond your bid, factor in additional costs such as:
In Scotland, a solicitor must submit offers on behalf of buyers. Your solicitor can provide guidance on crafting a competitive yet realistic offer, considering the Home Report valuation and market trends.
The Role of Closing Dates
In cases where a property attracts significant interest, sellers may set a closing date. This is a deadline by which all interested buyers must submit their offers. Here's what you need to know:
Tips for Buyers Navigating the "Offers Over" System
A knowledgeable solicitor can help you navigate the nuances of the "offers over" system, ensuring your offer is competitive while protecting your interests. You can find a list of our local solicitor firms on our website - https://www.hspc.co.uk/solicitors.asp
The Home Report valuation provides a helpful benchmark, but it’s important to consider current market conditions. In a seller’s market, properties often sell for well above their valuation, especially in urban centres or areas with limited supply.
It’s not uncommon for buyers to lose out on properties, especially in competitive markets. Have a backup plan and remain patient as you continue your search.
The time of year can influence competition and prices. Spring and early summer tend to be the busiest periods for property sales, while autumn and winter might present less competition.
This system, combined with Scotland’s unique conveyancing process, makes the property market more predictable and reduces the risk of deals falling through at the last minute.