With the Edinburgh property market picking up here’s our advice on how much you should bid when you are looking for your dream home.
Over the last year, demand in the local property market has been on the rise. More homes are going to closing dates, buyers are making higher offers and more properties are achieving, or exceeding, their valuation. Knowing how much to bid in these circumstances is vital if you want to secure your dream home without paying over the odds.
Whilst every sale is different, a good knowledge of the market goes a long way to helping you to make an informed bid. For example, we know that if you are looking to buy a larger home you are more likely to have to pay over the Home Report valuation than if you are buying a smaller property. Just over 60% of three bedroom houses that were marketed and sold in 2014 exceeded their Home Report valuation compared to just 47% of one bedroom flats in the same period.
As you’d expect, the old maxim of “location, location, location” also holds true. 81% of homes marketed and sold in Bruntsfield last year exceeded their valuation, whilst, just a few minutes down the road in Gorgie, that figure stood at just 31%.
Here are our top tips to help you when you’re making an offer:
- Don’t become too fixated on one property that you love early in your search. Although buying a home is the biggest financial commitment that most of us will make, a lot of us still make very quick, emotional decisions. Look around at everything the market has to offer and you’ll be less likely to get caught in a bidding war for one property.
- Valuing a home is an art, not a science. Although the valuation in the Home Report is provided by an independent Chartered Surveyor, you’ll find that two surveyors may well value the same home differently. At MOV8 we can give you full details on the latest sales in the specific area where you’re looking so that you’re armed with all the information you need.
- Check the Home Report to see when the property went on the market. Generally-speaking you’ll find that the longer a home has been on the market, the less likely it is to meet its valuation. There’s a good chance that the reason it’s been on the market for a while is that the surveyor may have slightly overvalued it!
- Take advantage of your solicitor estate agent’s local knowledge. Market trends can vary significantly even within towns and cities. At MOV8 we help hundreds of buyers and sellers every year and we pride ourselves on our in-depth knowledge of the local market.
- Set a budget and stick to it. Inevitably when you’re looking for a home you’ll find some catching your eye that are just a little over your budget. However, don’t fall into the trap of bidding more than you can afford.
- Don’t panic! There’s more competition among buyers these days but don’t despair if you miss out on a property or two. There’s also more homes coming onto the market than there has been for the last few years, so the chances are that you’ll find something else that you love sooner rather than later.
If you’re thinking of buying or selling then get in touch today on 0345 646 0208 and one of our friendly, experienced team will be delighted to help. Alternatively you can fill out our online form and we’ll get back to you as soon as possible.