If you’re looking to buy a property in Edinburgh and the Lothians just now you will no doubt have noticed that the majority of homes for sale are advertised at ‘Offers Over’ the asking price.
We have previously looked at what each of the different offer types used when marketing a property mean. Knowing how much to bid when a property is marketed at Offers Over the asking price is especially invaluable if you want to ensure that you secure your new home for the best possible price. Here is our summary the main factors that you need to consider when deciding how much to bid for a property marketed at Offers Over.
Home Report Valuation
One of the most important things to look at as a buyer is the Home Report valuation of a property. Where a property is marketed at Offers Over the asking price will typically be set a little bit below the valuation to help generate interest from prospective buyers. The seller will then hope to use that interest to generate an offer in excess of the valuation figure.
Bear in mind that most lenders will only lend up to the valuation figure. This means that if you want to bid more than the property’s valuation you will need to have these funds on hand in addition to your deposit.
Time on the Market
You will also be able to see from the Home Report when the survey element was carried out. In most cases this will give you a good indication of how long the property has been on the market, although your solicitor will be able to confirm this by speaking to the selling agent.
In general, the longer a property has been on the market, the lower the likelihood that it will achieve an offer well in excess of its valuation.
Competition From Other Buyers
As is the case in most markets, supply and demand play a vital part in the price that a property achieves. Your solicitor estate agent will be able to find out how many notes of interest there are in a property that you are interested in.
Those who have noted intereste are not obligated to offer and people may opt to submit an offer without noting interest, but this will still give you a useful indicator of the level of competition you are likely to face from other buyers. The higher the level of competition, the more that you are likely to have to bid to secure the property.
It’s important not to lose sight of what a property is worth to you based on your own personal circumstances. If you need to move to a particular area quickly because, for example, you want to move to a particular school catchment area, you may be willing to spend more on a property than would otherwise be the case. On the other hand, if you are in no particular hurry to move and can be relatively flexible on the area that you move to, you can probably offer a bit less, safe in the knowledge that there will be other options available to you even if you don’t secure the property in question.
Local Market Conditions & Recent Sales
Across Edinburgh as a whole, properties are achieving an average of just under 5% over their Home Report valuation at present. This figure varies across the city depending on the location and type of property in question. For example, one and two-bedroom flats have achieved higher premiums of late, typically in the region of 6%. On the other hand, three and four-bedroom family homes in the Capital have, on average, achieved slightly lower premiums of around 3.5%.
Looking outwith Edinburgh, properties are achieving lower premiums than those within the city itself, with the average premium paid over valuation across the Lothians standing at just over 1%.
A good solicitor estate agent will have access to details of all the latest relevant sales. By using this information in conjunction with the factors above, they will be able to advise you on how much you should offer for a particular property and, in doing so, help you to secure your new home for the best price.
If you are thinking about buying a property or if you have a question about buying or selling, get in touch with Warners today on 0131 667 0232 or by emailing email@example.com and one of our team will be delighted to help you.