What Does Fixed Price Mean When Buying a Property in Scotland?

Key points

• When a property is marketed at Fixed Price, the asking price lets buyers know the price that the seller is hoping to achieve
• Properties are normally marketed at a Fixed Price if the seller is looking to achieve a quick sale
• Ordinarily, the first chain-free offer that is received at the Fixed Price will be accepted
• It is very rare for a Fixed Price property to sell for more than the asking price
• In some cases it is possible to secure a Fixed Price property for a little less than the asking price

What does Fixed Price Actually Mean?

Where a property is advertised at a Fixed Price, the asking price gives a clear indication of the price that the seller is hoping to achieve.

 Ordinarily, the first chain-free offer that is received that meets the asking price will be accepted. It is very rare for these properties to sell for more than the asking price, although the seller may still choose to reject an offer that meets the asking price, most commonly if an offer is conditional upon the sale of the buyer’s existing property.

Why are Some Properties Marketed at Fixed Price?

Marketing a property at Offers Over gives you the best chance of achieving the best price for your property, and for that reason over 80% of properties for sale in Edinburgh and the Lothians are marketed at Offers Over when they first go onto the market. Some sellers choose to go with a Fixed Price approach from the outset however. This will generally if the seller is looking to secure a quick sale, most commonly if they have had an offer accepted for their new home and have been given a limited window during which to sell their own property.

Fixed Price properties give buyers clarity on exactly how much they will bid on order to secure the property and, as long as the price is set at a reasonable level, can be a good way of getting your property under offer quickly.

How Much Should You Offer for a Fixed Price Property?

A clean offer that meets the asking price of a Fixed Price property will almost always be enough to secure it. It is not uncommon however to sell for a little less than the Fixed Price however. There are a few factors to consider when deciding exactly how much to offer, including:

• The length of time the property has been on the market,
• The seller’s circumstances,
• The level of competing interest.

Most importantly, you should factor in your own circumstances. If you were to miss out on this property, are there other properties of interest that are available on the market? The more options that are available to you, the more it can be worth testing the water with an offer that is a little below the asking price, especially if you are a chain-free buyer.

If you see a Fixed Price property that you’re interested in, get in touch with your solicitor estate agent who should be able to guide you on the approach to give you the best chance of securing the property for the best possible price.

If you are 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 we will be delighted to help . Alternatively, you can request a free, no obligation quote for selling or buying here.