How much should you bid when buying a property marketed at Offers Over?

At Warners, one of the most common questions that our dedicated purchasing team is asked by homebuyers, is how much they should offer when they are looking to purchase a property that is marketed at “Offer Over”. What seems like a simple question tends to have a rather more complicated answer though.

Warners’ expert Purchase Negotiator, Caitlyn Meaney, walks us through how much properties are currently selling for, and the factors that she considers when advising clients on how much to offer.

 What’s currently happening in the market?

The first thing to say is that when you’re thinking about how much to offer for a property marketed at Offers Over, the figure you should look at in the first instance is the mortgage valuation, not the asking price. In general sellers will set the asking price a little below the valuation and invite offers above that level. You’ll find the mortgage valuation figure within the survey element of the Home Report.

In the third quarter of 2024, properties across Edinburgh and the Lothians achieved a selling price that was, on average, 2.4% above the valuation figure. I always advise clients that the specifics of each transaction are different though, and there are a number of factors that we need to look at when finalising how much to bid.

First and foremost, I would look at how long the property has been on the market. Sellers’ expectations and interest levels in their property are always highest during the first couple of weeks on the market, so if you’re looking to offer for a home that has only recently gone ‘live’, it’s typically going to take a very attractive offer to be considered.

The longer the property has been on the market however, the more likely it is that you are going to be able to secure the property with an offer that is close to, or perhaps even a little below, the valuation.

We would also want to know how much competing interest there is in a property. In general, the first thing that we will do when a client tells us that they are interested in a property is to contact the selling agent to find out how many notes of interest there are and how long the property has been on the market. Knowing these two factors will go a long way to helping us decide what the best strategy is for our client and, if we are going to make an offer, what level to go in at.

Beyond these factors, it’s also essential to consider market conditions and recent sales comparables. We will look at the latest market conditions for in the area and for the specific type of property that our client is interested in. The ESPC archive is an invaluable resource when it comes to information on recent sales. It lets us access not just the selling price, but also the length of time that properties spent on the market, along with copies of the Home Report and sales particulars. This is particularly useful as it gives us far more insight into the details of why a property achieved the price that it did. Two properties may appear very similar ‘on paper’, but the condition, style and layout can be very different.

Finally, and perhaps most importantly, we would always consider clients’ individual circumstances when advising on how much to offer. A property is, after all, only worth what it is worth to each person. If you need to secure a purchase quickly, or if there is a very limited number of properties that fit your needs, then it will usually make sense to be willing to offer a little more. On the other hand, if you are not under a significant time pressure to move, and there is a good supply of properties that fit the bill for you, then it can make sense to go in with a lower offer.

Ultimately, we want to make sure that we help our clients to secure their new home for the best possible price, while at the same time doing everything we can to make sure that they don’t miss out on their dream home.

If you’re thinking of buying or selling a property, get in touch with Warners today on 0131 662 4747, or by email at property@warnersllp.com, and one of our expert team will be delighted to help.

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