Buying a home is one of the biggest financial decisions most of us will make. In Scotland, the majority of properties are advertised as "offers over". But what does this really mean and how does the process work? Let's dive in.
What is Offers Over?
Offers over is a pricing strategy where a property is advertised at a price the seller would like to exceed. For example, a flat may be listed as "offers over £150,000". This £150k figure is essentially the minimum price the seller is willing to accept.
Interested buyers are invited to submit sealed bids above this price. After a closing date, the seller will review all the offers and usually pick the highest bidder. It's important to note the seller is not obligated to accept the highest offer or any offer at all.
How Much Over Should You Offer?
This is the tricky part and will depend on a variety of factors:
- How popular is the property and area?
- Are there likely to be multiple interested buyers?
- What is your absolute maximum budget?
- How much do you want this specific home?
There's no exact science, but a good rule of thumb many solicitors advise is to offer around 10% above the asking price if you're really keen. However in a competitive market, offers can go 20-30% or more above the starting price. The only certainty is you need to offer above the price listed.
Tips for Offering Over
Here's a few tips to consider when making an offers over bid:
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Always get a mortgage agreement in principle before offering. This will define your budget.
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Ask the seller's agent for a price range the seller is hoping for. They may give you a steer on what to offer.
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If you can, make your bid an odd number like £205,250 rather than £205,000. That extra £250 could make the difference if two similar offers are received.
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Put an expiry date on your offer, usually a few days. This prevents the seller from using your offer to drive up bids from others.
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Most importantly, offer the most you can afford and are comfortable with. You may only have one chance.
Make Tracking Offers Over Homes Easy
Keeping tabs on all the properties you're interested in can be a challenge. That's where our app Property Tracker can help.
With Property Tracker you can:
- Save homes from Rightmove, Zoopla and more in one place
- Get instant alerts when a closing date is set or the price changes
- Take private notes on each property
- Compare your budget vs the latest sold prices for similar homes
Download Property Tracker today and take the hassle out of offers over.
Buying in Scotland and bidding offers over can feel daunting. But by doing your research, setting a clear maximum budget and using tools like Property Tracker you can navigate the process with confidence. Happy house hunting!
