How does buying work in Scotland?
How does buying work in Scotland?
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Most information online focuses on how buying works elsewhere in the UK, which can leave buyers feeling confused when trying to understand how the Scottish system works and what they can realistically afford. Below is a simple step by step guide to help make the process clearer.
The hunt
The hunt
Property is listed on local and mainstream national websites such as Rightmove and Zoopla. Property is listed as 'offers over'. This price is used to attract interest but it is misleading.
Home Report
Home Report
If you are interested, your first step is to request the home report from the estate agent. This is a survey and is supplied for free as is paid for by the seller.
Within the home report, you will find the home report valuation. As you can see this is quite a bit above the offers over price listed for the same property. Offers Over: 195k & Home Report: 220k & Likely sale price: 264k
This property used for illustration purposes is in Hyndland in the west end of Glasgow and will likely sell for 20% above the home report.
After viewing you have two options if you are interested. You can put a note of interest or make an offer (both via your solicitor). If you are lucky you will have an offer accepted at this stage.
In popular areas, properties go to a closing date: this is a deadline for all offers to be submitted. Those who have noted interest will be kept updated about the property throughout this. You need to note interest if you intend to put in an offer before the closing date.
The closing date has a closed bidding system, this means it is blind and you are unaware of what other people are bidding. Properties in popular areas can go for 10-25% over the home report value. Properties can also go for the home report and below home report. Location and timing is key.
The highest offer often wins but not always. Sellers sometimes consider speed, conditions and whether the buyer is chain-free.
It is important to be aware the home report value is the maximum the bank will give you for a mortgage, the amount you offer above the home report value is seperate to your deposit.
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