In Scotland many properties are marketed as an offers over price. This is a system unique to Scotland. This blog will explore how this process works and explain how to submit an offer in Scotland.
Offers Over V Fixed Price
When a property is listed as offers over, interested buyers submit bids through their solicitors by a certain deadline, which is called a closing date. The offers over price is named as the lowest price the seller is willing to accept, however in practice buyers are expected to bid above this. The offers over price is typically lower than the home report valuation. This is designed to generate lots of interest in the property and encourage viewings and offers.
Occasionally properties will be marketed at a fixed price where a seller is looking for a quick sale. It may be that it has been on the market for some time or just the seller’s circumstances.
How Does Offers Over Work
If you have viewed and are interested in a property, you will need to contact a solicitor to put in a note of interest. This is simply showing you have serious interest in the property and the estate agent will then keep you informed through your Solicitor.
You should receive a copy of the property’s home report at this point. When a property is put on the market in Scotland, the seller must provide a home report. The home report is compiled by a surveyor and includes details on the condition of the property, market value and information including the Energy Performance Certificate. Further down the line you may wish to arrange for further reports.
To submit a formal offer on a property you will need to instruct a Solicitor. The offer will include your details as the purchaser, the price, date of entry, details of any additional items included in the purchase price and the Scottish Standard Clauses required to complete the conveyancing. The offer may be conditional on you selling your existing property or securing your mortgage.
Where there is a number of people interested in a property, the seller will often instruct the estate agents to set a closing date. A closing date allows each interested party to submit an offer through their Solicitor to meet a certain deadline. Each buyer submits their price without knowing what anyone else has submitted. This is called a blind bid. The seller then chooses what offer they will go for. It is usually the highest bid., however sometimes sellers may consider offers not subject to sale or a mortgage as more favourable. Normally you will receive confirmation of whether you are successful on the same day.
When Should I Contact A Solicitor
We recommend reaching out to a Solicitor as soon as you begin looking to purchase a property. This allows for the full process to be broken down to you and all relevant fees explained.
Contact Us
Whether you are beginning your property search or have already identified a property you wish to offer on, please do not hesitate to reach out to our conveyancing team and we would be happy to assist you with the process.
Contact us on 0141 433 2626
