Putting in your best offer on a property in Scotland can be a bit of a balancing act. Go too high and you could overpay on the property but go too low and you might be out-bid by a rival buyer.
Doing your research and laying the groundwork with the seller is a great way to stay ahead of the competition and put together the best offer when the time comes. Here's what to consider...
Before the viewing
It's important to enter into negotiations armed with as much information around the market, the location and the property as you can. Here's what to bear to mind.
Know the market
If similar properties in the area aren't selling quickly, or if they're selling below the guide price, you can roughly work out where you want to pitch your offer.
Check Rightmove and Zoopla for any recent property listings. They'll give you the last sale price, as well as the most recent prices paid for houses on the same street.
Offers over or fixed price?
Before you head off to a viewing, make sure you know whether the seller is accepting offers over a certain price, or is on the market for a fixed price.
Offers over means the seller is looking for any offers over the listing price. The winning offer will generally be the highest one.
Fixed price means the seller is looking to achieve the listed price on the property. Generally this means the first offer will be the winning one.
Consider the vendor's financial position
Knowing what your vendor bought the house for can be useful information. If they bought the house over 15 years ago, it's likely they're sitting on huge gains with a much smaller mortgage. As a result, they're likely to be more flexible over what they'd accept when your solicitor sends over your offer.
If your vendor has only recently bought the house, they might need to accept a certain offer to cover their existing borrowings.
During the viewing
Viewing a property offers ample opportunity to find out a bit more about the vendor and make yourself a little more memorable, all of which can work in your favour when it's time to put in your offer.
Careful talk
Try to find out about your vendor's situation. Why are they moving and where to? What you want to uncover is how urgently the vendor needs to sell.
For example, if they're trying to move to a better school catchment area, they're likely to be keen for a quick sale, compared to an older couple who are downsizing.
Sell yourself
Tell the vendor the position you're in i.e. if you're a mortgage approved first time buyer, or if you're a cash buyer who doesn't need a mortgage.
Also, don't be afraid to tell the vendor about the emotional attachment you have to the house (if you do, that is). People are often sentimental about their home, and it doesn't hurt to tell them how much you love it too - go ahead, tug on those heart strings rather than loosening the purse strings.
Making the offer
Once you've gathered all your research it's time to make an offer. The Scottish market differs from the rest of the UK in that potential buyers will make a sealed 'best offer' commonly above the asking price by a set date. The offers are opened after that date and (usually) the highest offer will win.
Speak to your solicitor
In Scotland, the role of the solicitor generally encompasses the role of the estate agent as well. Lean on their expertise and opinion about where to pitch your offer but remember to maintain the balance between staying competitive but not over offering.
It's up to your solicitor to send through your formal offer once you've decided on a figure and a date of entry, as well as any details of extra items to be included in the sale. Verbal offers are, as a rule of thumb, no binding and therefore disregarded.
Prepare for negotiation
It's worth working out what you can stretch to should the seller come back with a counteroffer. Always remember to stick within your budget to avoid financial issues that could arise should you over-extend.
It's also worth remembering that once the missives between solicitors have been finalised the deal becomes legally binding. Breaking the contract at this point will mean you'll incur significant financial penalties, so make sure you're certain of your decision before you reach that point.