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lulu

'offers Around' Any One Have Any Thoughts?

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I have just seen my perfect house in Midlothian. The sellers have put it on the market at an 'offers around' price.

Has anyone got any experience on what the offers around actually means when it comes to putting offers in? Particularly whether things are selling quickly in Midlothian?

The place needs a fair bit of work done on it and has been put on the market at the home report amount valuation, but I think it would take £15K at least to get it up to scratch (based on back of fag packet calcuations).

I know the owner needs to sell (they have already bought their next place). If I do put an offer in it will be for a fair bit less than the valuation, but I have no idea how the offers around system is supposed to work - would they be expecting the valuation price? particulary bearing in mind the work that needs done (there are alot of 2's on the home report everything from damp to heating and electrics needing replaced).

(I know it is impossible to really comment without knowing all the details but any advice would be welcome as I have never been so close to putting offers in on anything)

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Read the home report.

It will have a valuation.

The valuation will be £500-£5k more than the "offers around"

Basically, they will accept the valuation (as sellers) or a bit less.

It's quite common in Aberdeen - everything is now priced at the valuation. Whereas, before the home reports, the place was valued and people put an o/o price and people bid on that price. They had to use their own discretion to determine the price they would offer - and in the panic, prices rose as buyers threw everything that had at owning property!

If you are thinking of buying this house - the offers from the "offers around" stance are nervous about price/the market and eager to sell.

Good luck

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In Fife the offers around is usually valuation or below. It would depend if there were others interested but closing dates are much rarer these days. If you have nothing to sell you are in a very good negotiating position so test the water with a lower offer and see what they say.

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I have just seen my perfect house in Midlothian. The sellers have put it on the market at an 'offers around' price.

Has anyone got any experience on what the offers around actually means when it comes to putting offers in? Particularly whether things are selling quickly in Midlothian?

The place needs a fair bit of work done on it and has been put on the market at the home report amount valuation, but I think it would take £15K at least to get it up to scratch (based on back of fag packet calcuations).

I know the owner needs to sell (they have already bought their next place). If I do put an offer in it will be for a fair bit less than the valuation, but I have no idea how the offers around system is supposed to work - would they be expecting the valuation price? particulary bearing in mind the work that needs done (there are alot of 2's on the home report everything from damp to heating and electrics needing replaced).

(I know it is impossible to really comment without knowing all the details but any advice would be welcome as I have never been so close to putting offers in on anything)

Who cares what they expect. You are in charge. Test the water. Nothing to lose. Well unless houses in that area are flying off the shelf of course.

I can't see it but I am not from those parts.

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Thanks for the comments, I am thinking of going down the cheeky wee offer route. It is just the offers around seems just a bit odd, why not do 'offers over' a wee bit less than the 'offers around' price?

As a work collegue pointed out I am an ideal buyer as (assuming i am approved for a mortgage - I can't think of any reason why that should be a problem) I have the funds in place. The money can be on the table just as soon as the mortgage is sorted and there is no chain to fall through.

Going to see about mortgages tomorrow that will dictate just how cheeky the offer will need to be :)

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As far as I can tell, from the few properties in my area which have sold and whose sale prices have appeared on nethouseprices etc., Offers Around is essentially the pricing system which is in place in England and Wales. It means that offers would normally come in a bit (or a lot) below the asking price. However, if demand is very high, offers will have to be above the asking price, just as people offer over the asking price in England and Wales (or it goes to sealed bids) during boom/bubble times. Furthermore, although the Offers Around price is based on the Home Report valuation, I would take those valuations with a large pinch of salt, as I have seen several which are way over the top.

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Lulu

With the OA system interested parties can still note interest. If a 2-3 notes accumulate then the sellers may well go to a closing date just like the OO system, in which case it will likely sell for more than the OA price. If there is less interest then its just a question of offering straight away like fixed price.

One other thing I noticed from your original post-you say it needs a fair bit of work doing to it. 15k doesn't sound like very much money to cover 'a fair bit of work'.

Finally-how often does a house that you describe as "perfect" come on the market? If it is very rarely, and you can afford it, then you should really go for it. Paying 10k more than you want to secure it will soon be forgotten if it is a once in a blue moon property that you will love.

And in reply to MH's post- HR valuations are no more reliable than yours or my valuations. I've seen them 25% too high. I've also seen them 15% too low.

Edited by fflump

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With the OA system interested parties can still note interest. If a 2-3 notes accumulate then the sellers may well go to a closing date just like the OO system, in which case it will likely sell for more than the OA price. If there is less interest then its just a question of offering straight away like fixed price.

I've never understood this 'note of interest'. It seems to be shooting yourself in the foot. Above you say that if 2 or 3 are made then it is more likely to go to closing date. So by noting interest you increase the likelihood of a closing date. What is gained from noting interest apart from giving an agent the opportunity to use it against you? When agents say there are x notes of interest can they really be believed or is it just a way of trying to scare people into offering more?

Might you just as well put a low offer in? At last that might be accepted.

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Thanks for the comments, I am thinking of going down the cheeky wee offer route. It is just the offers around seems just a bit odd, why not do 'offers over' a wee bit less than the 'offers around' price?

As a work collegue pointed out I am an ideal buyer as (assuming i am approved for a mortgage - I can't think of any reason why that should be a problem) I have the funds in place. The money can be on the table just as soon as the mortgage is sorted and there is no chain to fall through.

Going to see about mortgages tomorrow that will dictate just how cheeky the offer will need to be :)

You have been on this board long enough not to be sucked in by that ******** !!

No offer is cheeky. It is an offer. If they don't accept it they don't accept it. By thinking you are making a 'cheeky' offer you are instantly putting yourself in a negative situation. You are making an offer. If they want to thin kit is cheeky ? Their problem.

Good luck, but personally I think the dam is just about breaking in Edinburgh at long last.

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here is my take on "offers around" price. It is the price that they would have liked to get on the house before things went oh so quite and slow. They would have put it on fixed price, but don't want to in case that looks too desparate and they would still like to hold out the possibility that some one will offer more than that, but they do accept that they might get less than that. It is basically a: "if only we had sold three years ago like I said we should dear" price

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here is my take on "offers around" price. It is the price that they would have liked to get on the house before things went oh so quite and slow. They would have put it on fixed price, but don't want to in case that looks too desparate and they would still like to hold out the possibility that some one will offer more than that, but they do accept that they might get less than that. It is basically a: "if only we had sold three years ago like I said we should dear" price

:lol: reality will hit soon for these OA dreamers!

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:lol: reality will hit soon for these OA dreamers!

there's been plenty of dreamers on both sides of the bear/bull argument in recent years.

it is facile to suggest that people that market at oa are dreamers-it is the amount they ask for that matters-not whether it is oa or fp.

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there's been plenty of dreamers on both sides of the bear/bull argument in recent years.

it is facile to suggest that people that market at oa are dreamers-it is the amount they ask for that matters-not whether it is oa or fp.

My comment referred directly to the definition of an OA dreamer offered by the poster quoted in my reply. (edilass)

I am aware of the many Bull/bear arguments.

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there's been plenty of dreamers on both sides of the bear/bull argument in recent years.

it is facile to suggest that people that market at oa are dreamers-it is the amount they ask for that matters-not whether it is oa or fp.

Wrong. It is the amount they receive in their bank accounts that matters. What they ask for means less than nothing.

I feel like selling my old VW. I think I may ask for 3.4 trillion pounds for it. That is what matters..........

:rolleyes: Fail.

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Wrong. It is the amount they receive in their bank accounts that matters. What they ask for means less than nothing.

I feel like selling my old VW. I think I may ask for 3.4 trillion pounds for it. That is what matters..........

:rolleyes: Fail.

Wrong. My point was that the amount the ask for determines if they are *dreamers* or not. Ask a realistic amount=not dreamer. Ask too much=dreamer.

Try reading more carefully before replying-or avoid late night posting.

cheers

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Lulu

With the OA system interested parties can still note interest. If a 2-3 notes accumulate then the sellers may well go to a closing date just like the OO system, in which case it will likely sell for more than the OA price. If there is less interest then its just a question of offering straight away like fixed price.

One other thing I noticed from your original post-you say it needs a fair bit of work doing to it. 15k doesn't sound like very much money to cover 'a fair bit of work'.

Finally-how often does a house that you describe as "perfect" come on the market? If it is very rarely, and you can afford it, then you should really go for it. Paying 10k more than you want to secure it will soon be forgotten if it is a once in a blue moon property that you will love.

And in reply to MH's post- HR valuations are no more reliable than yours or my valuations. I've seen them 25% too high. I've also seen them 15% too low.

So what you are basically saying is that the Scottish system is rubbish, I would concur.

I sell my car, I want £5,000 so I ask for £5,200 allowing for offers, or I ask for £5,000 and say no offers thanks. The market will dictate the cars value via either the phone ringing off the hook or the opposite whereby i then have to lower my price. Logical, Simple.

I sell my house in Scotland, I can either put a completely irrelevant asking price of Offers Over £xxxk (A nonsense figure as it will bear absolutely no relevance to the amount of money that will eventually change hands...great whats the point?). Or I can put an asking price of Offers Around £xxxk leaving prospective purchasers with very little idea of what to offer similar to OO. Do I go above or do I go below???? estate agent tells me "oh you must offer a little more just to secure the property" but he would because he is a swine salesman.

I know, lets pretend my house is a car. I put my house up for sale for £xxxk (No offers over, no offers around and no fixed price,,,,,just the price) which is just above what I really want for it. Prospective purchasers then know what I want for the property. The market then dictates if my asking price is realistic via the phone ringing off...............etc...Logical, Simple.

Scotland needs to wake up. You are all being manipulated by a system which is unfairly geared towards the vendor and lining the solicitors pockets with as much money as possible. And just because "thats the way it has always been up here" does not make it right.

Better still the vast majority of houses in Australia go to open Auction. It is by far the preferred method. The auction is actually held at the property, the market dictates what it is worth. No snidy sealed bids, no playing prospective purchasers against each other from solicitor to solictor. A straight open bidding contest. Logical, simple...fair.

Edited by geed

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Wrong. My point was that the amount the ask for determines if they are *dreamers* or not. Ask a realistic amount=not dreamer. Ask too much=dreamer.

Try reading more carefully before replying-or avoid late night posting.

cheers

Nope. I was wasted but on reflection I completely agree with myself.

'Dreamers' ? Who defines who is a 'dreamer' or not ? It is all totally objective.

The amount they offer does not determine if they are a 'dreamer' or not. It defines what they want to offer for it. Simple as that.

This whole con that is sold to the public about 'cheeky' offers and the rest really is laughable. More laughable that many actually believe it.

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Nope. I was wasted but on reflection I completely agree with myself.

'Dreamers' ? Who defines who is a 'dreamer' or not ? It is all totally objective.

The amount they offer does not determine if they are a 'dreamer' or not. It defines what they want to offer for it. Simple as that.

This whole con that is sold to the public about 'cheeky' offers and the rest really is laughable. More laughable that many actually believe it.

lol are you still wasted ccc? ;)

We are talking about the price the property is being marketed at, not the amounts people are offering at!

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lol are you still wasted ccc? ;)

We are talking about the price the property is being marketed at, not the amounts people are offering at!

Nah the intitial chat was about cheeky offers and then you also mentioned about what people were asking for.

I am just making a comment on the 'cheeky' nonsense that you hear all around the place. When it comes to your own money nothing is cheeky !!

Anyway you could relate this to what people are asking as well. Are they making a cheeky offer themselves....:D

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Thanks again for all the replies.

I checked again just now on ESPC and it is now described as 'under offer'. I think I will be moving on from this one and will be interested to see what the selling price actually is. For various reasons I am not going to put an offer in, the main reason being the work required to get the place up to scratch was out of my budget - unless I could have got a significant chunk off the asking price and I dont have the finance in place - much of my anticipated deposit is coming from an inheritence which is being held up for various logistical reasons.

Shame really as it could have been very nice with a bit more money to spend on it - which presumably the purchases have?

Of course there is no guarentee that the purchase will go through so I will keep an eye on it. A bit disappointing but probably a good thing really as it could have become something of a money pit - especially with the damp/roof issues shown up on the home report.

I am thinking now is looking like a good time to buy though as I have extended my search area and there are lots of similar (though not as handy for my work :)) places about for less money and been on the market for far longer so should be ripe for some 'realistic' offers.

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Well keep up posted. Roof/damp issues don't sound like a good starting point anyway.

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Offers around is a bizarre marketing strategy, which only seems to serve to signal "please take the piss with your offer, I have no idea what it's worth and no one else wants it" to a potential buyer. A price ceiling would already have been set by the home report, so if the seller wanted to indicate they're ready to negotiate they could put it on at the fixed price below the HR. Apart from the fact that "prices slashed while stocks last" is page one of "Ye olde boke of ye marketinge bollockes", it sets a firm negotiating position that is itself a price signal.

Speaking of Home Reports, an interesting trick was suggested to me recently where a seller gets 3 "walk around surveys" and picks the surveyor with the most favourable valuation to do the full HR, taking the chance out picking the right surveyor I suppose. Is this fairly common practice now? Worth doing or just an upselling scam?

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Thanks again for all the replies.

I checked again just now on ESPC and it is now described as 'under offer'. I think I will be moving on from this one and will be interested to see what the selling price actually is. For various reasons I am not going to put an offer in, the main reason being the work required to get the place up to scratch was out of my budget - unless I could have got a significant chunk off the asking price and I dont have the finance in place - much of my anticipated deposit is coming from an inheritence which is being held up for various logistical reasons.

Shame really as it could have been very nice with a bit more money to spend on it - which presumably the purchases have?

Of course there is no guarentee that the purchase will go through so I will keep an eye on it. A bit disappointing but probably a good thing really as it could have become something of a money pit - especially with the damp/roof issues shown up on the home report.

I am thinking now is looking like a good time to buy though as I have extended my search area and there are lots of similar (though not as handy for my work :)) places about for less money and been on the market for far longer so should be ripe for some 'realistic' offers.

Make sure you keep the schedule, if you don;t get it will be interested to see what it was all about

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Speaking of Home Reports, an interesting trick was suggested to me recently where a seller gets 3 "walk around surveys" and picks the surveyor with the most favourable valuation to do the full HR, taking the chance out picking the right surveyor I suppose. Is this fairly common practice now? Worth doing or just an upselling scam?

I believe this is fairly common now.

Another trick is to get JE Shepard's to do the report - if you look at higher end properties ($400k +) marketed by the likes of Simpson and Marwick their HR's are almost all done by them. My solicitor says that Shepard's are notorious for over valuing properties.

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  • 246 Brexit, House prices and Summer 2020

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      • down 5% +
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