Remster

Quick clarifying question.

The couple we are buying from are relocating to Scotland and are consequently trying to buy a house up there. Problem is they seem to be missing out on each one they bid on which is delaying things somewhat. Am I right to believe that in Scotland, you make your bid after carrying out any survey etc. and that this bid is then considered with any others on the bid closing date? Also, if you have been unsuccessful, you are unable to increase your offer?

We have sold our place and are ready to move as soon as the couple have sorted things out. It is starting to drag on a little.

GM

Certainly in Edinburgh it's now become common to bid "subject to survey" - so you'd only get the survey done if you are the winner and you can then drop out if the survey shows up a problem. Saves everyone bidding on a property having to get a survey done although it does mean you may not have an accurate idea of the valuation. You don't have to wait for the seller to set a closing date -you can put in a bid which will lapse after perhaps 48 hours but generally that won't be accepted if there's any other interest in the property. If it does go to a closing date then that is exactly that - and there is no option for someone to go back and increase an offer. (Well, legally it could be done right up to the time the missives are concluded, but the buyer's solicitors would probably have nothing to do with it - so it shouldn't happen). The other option is for them to buy a house that is marketed at a fixed price. Once upon a time that tended to mean that the house wasn't attracting much interest but it is much more common now.

Reality

Yep - that's how it works.

Usually an offer of 20-25% above the "asking price" will secure - but there's no guarantees - A real lottery .

Buy a new house from a developer and it's usually fixed prices - otherwise it can take ages. You can always negotiate with the buyer - they don't have to go for offers over - you can say to them - I'll give you £250k if we can not go to a closing date (date for offers over bids).

You could be in for a long wait .

Gordo

and they can only submit one bid at a time (as bids are legally binding if accepted).

Great system as a seller, awful as a buyer. Whilst it stops gazumping you're never sure of what you can actually afford - took us a year when we moved to Scotland to secure the right house.

G

GM

New variation on a theme announced today - the Dutch auction. House goes on the market at F/P £800K on Monday and they reduce the F/P by £2K every day untl someone buys it! Might just about be able to afford it sometime next summer.....