In This Guide
choosing an agent
Conveyancing
Holding viewings
Negotiation
Planning your sale
Prepare your home
Seller's Packs
Selling at auction
Selling in Scotland
1. Overview and main differences
2. Preliminary activities
3. Receiving offers
4. Missives and settlement
Selling privately
Selling your home
Using estate agents
Selling in Scotland
Receiving offers
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The process of making and receiving an offer differs quite considerably in Scotland to that which takes place in England and Wales.
In England, the seller gets the property valued by several estate
agents and will often set the initial asking price at, or marginally
above the highest valuation. They will usually expect the buyers
to come in with offers below the asking price. To Scottish people,
this must seem like a backwards way of doing things.
In Scotland, the seller will, in consultation with his or her solicitor, set a price and invite offers over and above that price. This is known as the upset price. This is the minimum price at which you are likely to consider an offer. Most properties do not get sold for less than the upset so you can normally dismiss anyone cheeky enough to come in with an offer below that level. It is not uncommon in times and areas of high demand for a property to be sold for ten, twenty, or even thirty percent more than the asking price.
It is also possible, though less common, to sell your property at a fixed price, in which case you would normally accept the first offer for the asking price.
The way things work in Scotland mean that there is only scope
for negotiation when a person is the only interested party in
a property. Most of the time, there will be competition for your
home and people will only be given the chance to make a single
offer. The greater the competition, the better the likelihood
of somebody overvaluing the property, or making an outrageously
high bid in order to fight off the other buyers.
The interested parties have a valuation done, and may do their own research into the value of the property (usually derived somehow from the upset price, the independent valuation, advice from their solicitor with some influence from how desperate they are to live in your home).
Offers are then received in sealed bids and are not opened until a predetermined time on the closing date - the deadline by which all offers must be received. Any offers not with you or your solicitor by a specified time on the closing date can be dismissed.
Your offer should also include the date of entry - the day and month on which you pay for the property and receive the keys - and details of any extras which are to be included, such as carpets and curtains.
On the closing day at a pre-specified time, you and your solicitor
will open the offers and decide which to accept. Each offer comes
with a price and a proposed entry date - the date on which the
buyer would ideally like to complete the transaction. Most people
accept the highest offer, but you may find that the entry date
can play a part in swinging the decision, especially if, for instance,
you are very keen to get the funds in place and move out quickly.
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