The recovery of the UK housing market has been welcome news, and forecasts over the next 12 months remain incredibly positive across the whole of Scotland. This is due to a variety of factors, namely the return of buyer and lender confidence, high mortgage approval numbers, and continued record-low interest rates. As a result, however, we now find ourselves in the midst of a seller’s market. Simply put, demand exceeds supply – the number of house hunters far outweighs the number of residential properties for sale.

This disparity creates fierce competition amongst buyers, thus leading to quicker closing dates and multiple sealed-bid offers, more than 50% of which are above asking prices and Home Report valuations. Consequently, one of the questions we most often hear from hopeful buyers is: ‘How much should I offer?’

The truth is, there is no hard and fast rule, It varies on a case-by-case basis and is almost entirely dependent upon location and, sometimes, property size, style and entry date. The difference between bordering areas can be so drastically different that is impossible to provide generic advice on the right amount to offer.

When a property is advertised as ‘offers over’, the vendor is inviting offers higher than the price stated. It is commonplace to advertise properties at an asking price much lower than the Home Report valuation and desired sale price. This strategy is used to generate lots of interest and bids from prospective buyers. Unfortunately, because bids are sealed, it’s very difficult for hopeful buyers to know how much to offer.

For this reason, it is crucial to seek professional advice from an experienced estate agent with in-depth knowledge of the local market. If you’re still in the early stages of planning to buy a property and have not yet approached an agent, it can be helpful to look at the sold prices of similar properties in the area to get a general idea of what to expect.

The current situation is in stark contrast to the same period four years ago, when property sales were just beginning to grow, closing dates were a rarity, and the majority of offers were at or below Home Report valuations. Going back a few years earlier, when the market was at its most buoyant before the property crash, the ‘offers over’ system in Scotland was so fierce that it was commonplace to offer between 25-30% above the asking price and valuation.

Currently, vendors in Glasgow obtained for properties marketed at ‘offers over’ an average of 8.2%, above asking price, rising from 7.2% last year. Across central and West Scotland as a whole, reported sales prices are around 5-10% above valuation at the present time, which gives some indication of what you may be required to offer.

At Caledonia Bureau, our comprehensive service and experienced team of specialists enable us to provide tailored property matching services and mortgage advice, helping you to secure the very best mortgage deal, find the perfect property within your price range in the West of Scotland, and advise on the best offer to make in line with your personal preferences and circumstances. This makes the entire process less stressful and daunting, allowing you to feel confident in your decision and enjoy the house hunting and buying experience.

As one of the West of Scotland’s longest-standing estate agents, we have had lots of experience managing the ups and downs of the housing market in recent times, so you can be confident you’ll be in safe hands when working with us. With an expert team by your side and a variety of properties on offer, including both property to let and homes for sale, Caledonia Bureau are confident that we can match you with the right home. Give our friendly team a call today, choosing from our offices in Clydebank, Helensburgh, Dumbarton and Paisley.