talizman

iTrader: (1)

With more and more Fixed Prices popping up on the Scottish Housing Market and less and less "Offers Over", I was just wondering....

Is it actually "Fixed Price or nearest offer" or does the fixed price tend to be rigid?

Would it be bad purchasing etiquette to offer slightly below the fixed price, like the English market operates?

Also, how proportionate to the fixed price does the survey price tend to be, as a general rule?

imlach

you are free to offer anything you like on a fixed price. There is no requirement to pay the sticker price.

Some go for over (if 3 people want it in one day), and some go under if little interest.

Fixed price has no proportion to the valuation. Some people are cheeky and ask for loads over, some not.

talizman

iTrader: (1)

Cheers imlach

Johnny50

We bought ours fixed price.
And we offered just under the asking price, and got it.

Just got to take a chance.

Diablo

Whilst you are free to offer anything you like, as Imlach has said, you would be advised not to, unless you know there is little interest.

Sellers generally will expect to get the fixed price, and many are doing it because offers over is now puting many buyers off.

I've known a few sellers get really pi55ed off when purchasers from England familiar with the etiquette of bidding low come in with a low offer because thats what you do down south.

If you do bid low, be prepared to be told to **** off

D

Diablo

Oh, and a fixed price (as any price in most of scotland just now) will have little correlation to the survey figure.

It will generally be above survey, but a bit below what might be achievable in the event of a closing date bidding war.

Clett

So why are there so many fixed-prices appearing just now? Is it just a winter thing, or has the market finally started its trend back down to earth?

pugoetru

I think fixed prices would be better ok you might not get as much as you could but at least the buyer knows if they can really afford it or not

we have looked at houses offers over 75k and they have sold for 110k at least if it had been fixed at 110 we would not have wasted our time

GM

Combination of things I'd guess. I think a lot of people got fed up with the way that a house advertised at oo £150K was actually going for £250K and started looking at FP properties only. It takes the guesswork out and lets people know that if they put an offer in they're almost guaranteed to get the property. A few properties near me have sat around for a while at an oo price and gone quickly when they went to FPs around the sort of level you'd have expected on the offers over basis. The market has slowed down too - I'm not convinced the market in Scotland is actually going to come down though. There is still demand and property never reached the really daft levels of unaffordability that it did in parts of SE Englandshire for example.

Langy

I got my house for £5k under the 'offers over' price. Guy had a bridging loan and wanted a quick sale.......if you don't ask, you don't get

talizman

iTrader: (1)

We are looking at 3 properties....

1) Property 1 was put on the market initially at o/o £110k in November, and has now been changed to a fixed price of £130k. The family who are selling are dead keen on a house which has a closing date of 11th February so although they aren't desperate yet, they may be soon.....

2) Property 2 is unoccupied and I'm not sure how long it has been on the market. I assume its been a relationship breakup or something as they are obviously looking for a quick sale. Its a FP of £135k so I reckon a few grand could be cheekily knocked off.

3) Property 3 is on at FP of £133k and the owners haven't bought a new place yet so they might not be in a haggling mood!

lightning101

Here is a paste from the scottish law website that might help as well.


The Professional Practice Committee published Guidelines on Closing Dates in 1991. At that time the Committee decided not to issue a Guideline in relation to fixed price offers, but after reviewing the matter in the light of more recent developments, they have now issued the following Guideline:

The use of fixed price offers should be considered carefully. Problems can arise when two or three prospective purchasers attempt to express interest simultaneously or when offers are submitted subject to conditions.

A sale advertised at a fixed price is an invitation to prospective purchasers to submit offers at that price. In the Committee's view it does not imply an undertaking on the part of the solicitor that the first such offer will be accepted.

If a solicitor is instructed to advertise a property at a fixed price, the Property Particulars should state if the date of entry is material and whether offers subject to survey, subject to finance being obtained, subject to the purchaser's own house being sold or subject to some other suspensive condition will be considered. Other matters material to the seller should also be clearly stated.

imlach

You just have to try and find out as much info as you can (much like you have done).

ie, how long has it been on the market, have they bought somewhere else, etc.

You also have to judge it on how keen YOU are on the house. There's no point pissing around over a few thousand if you REALLY want the house. Someone could jump in and pay the asking price and then it's gone.....if you're not so bothered about it, but would be if 5% cheaper, then by all means be cheeky and try it on.

Also, don't offer 5% below, then 4% below, then 3% below, etc....it will just pee off the seller. At worst, put in a cheeky offer. If it gets rejected, put in a sensible reduced offer....if rejected again, re-assess how much you want the house, and then decide whether paying full whack is ok and then offer it.

Remember, the market will be picking up again around the end of Jan once people have sorted out their finances for the year.....new buyers will be coming to the market every day.