News In Focus
20 November 2008
Home reports "spell the end for offers over system"
Home reports could mean the end of the "offers over" system in house selling, according to Edinburgh solicitor/estate agents.
The reports, which come into effect on 1 December, will mean that sellers need to provide a full surveyor's report and estimation of their home's value. Scott Brown of Warners believes that buyers will be unlikely to offer significant amounts of money over the asking price if they see an actual valuation.
This would make the Scottish property market more like that in England, where bids are expected at around the asking price. Warners has already started marketing properties at "offers around" a stated price.
Others however believe that "offers over" could still be used, depending on the state of the market and the attractiveness of the individual property. Recent years have seen a trend towards, and then away from, "fixed price" advertising as the market slowed and then picked up again. At present more properties are again being offered at a fixed price.
Leslie Deans, also a solicitor/estate agent and solicitor, considers that the practice of setting a low offers-over price to stimulate competition would still work in a stronger market. Sellers may also wish to indicate the lowest price they will accept.