“Offers over” property prices are likely to start dying out in Scotland with the introduction of next month’s Home Reports, according to one of the country’s leading solicitor-estate agents.
Warners has predicted that properties will start to be advertised for “offers around” after the new Home Report legislation is introduced on December 1, radically changing the way homes are listed for sale in Scotland.
Under the new legislation, every property that is put up for sale after December 1 will have to include a Home Report, which provide an all-inclusive property survey, an energy efficiency report and a seller’s questionaire.
But Warners, which is Edinburgh’s leading property solicitor in terms of property listings, property sales and total sales value in the ESPC for the past nine years, believes that as buyers will be able to view a Home Report and see how much a property is worth, they are less likely to consider asking prices above its official valuation.
The firm has said that potential buyers are likely to prefer choosing an offers around property to an offers over or fixed price, as there is more transparency over the figure they would be expected to put their opening bid at. However, they have stressed that – even at an offers around price – the final selling figure for a property could still rise above its Home Report valuation if there is enough interest to spark a bidding war.
Warners has already started listing properties in the Capital at “offers around” and says that it will be recommending the option to more sellers over the coming months.
Scott Brown, Estate Agency Partner with Warners, said: “Every home that is sold in Scotland from December 1 will need to have a Home Report. However, as each report includes a valuation of the property, it means that buyers can see how much every property has been valued for before they decide to make an offer.
“Effectively it will make it more difficult for homes to put up for sale at offers over or fixed prices. After all, if buyers are going to know how much the property is worth in advance, there’s no point in setting a price that is either well below or above that value.
“For example, if the Home Report estimates that your property is worth
Contact: Holyrood Partnership
Phone: 0131 561 2244