Closing date in Scotland. Top Tips for success!
You have been house hunting for months and finally you find the perfect home. You are told other buyers love the property too and the selling agent in Scotland has set a closing date.
Do not be disheartened. Compile a plan, do your research and follow these top tips for success at a closing date in Scotland. You could be successful and have your offer accepted.
The most common question is “What should I offer to secure the property?”. Simply, there is no correct answer or formula to give. Without a glass ball to predict the future, you do not know what other buyers may decide to offer for the property. What you can do is pitch your best bid and be in the best position possible. Here you will find advice about how to handle a closing date in Scotland with top tips for success.
View the property again
If you have been informed of the closing date I would recommend that you book another viewing now. You will likely have a week or so until the closing date and estate agents diaries are busy. If you want another viewing then get in touch with them immediately. If you are successful at a closing date then you are not allowed to view the house again in Scotland until missives are in place. (What are property missives?), So its important to act quickly on any viewings you may want.
Have your finances ready
If you will requiring a mortgage then ensure you have your Decision in Principle from the mortgage lender. The seller will take comfort knowing that you have this in place.
On occasions estate agents may also ask for proof of funds. This could be for the deposit amount or for the full purchase price if you are a cash buyer (no mortgage required). As an example this could be a copy of a statement for a savings account or a letter from your bank.
Get your house ready if you need to sell
I have spent all my career in one city in Scotland where you are expected to have secured an offer on your own house before offering on another. On this basis, ensure your own house is under offer and be prepared to provide this information to the sellers. This is one of the best tips for a closing date in Scotland as buyers will be slightly more concerned if you have a house to sell.
If you do not have your property on the market, or under offer, but need to sell then be proactive. Ensure you have had estate agents round to give you a valuation. I would also recommend having your marketing material prepared, including photos taken and brochures written. This shows the sellers that you are serious, committed and ready to market your property if your offer is accepted.
Have your local solicitor ready in Scotland
Having your solicitor in place is something I recommend in Scotland from the very beginning of your house hunting journey. In Scotland we always recommend using a local solicitor who is familiar specifically with your local property market. They can therefore provide you with very accurate and relevant advice.
Phone your solicitor, or have a meeting in person, to discuss the specific property. Your solicitor will provide you with their advice. They will explain the process and can provide you with sale figures of other similar properties. Find a reputable solicitor through the Law Society of Scotland
Know how many other buyers are offering at the closing date
You may already know that if you are interested in a house in Scotland you ‘Note Interest’. Before a closing date its really important that you know how many other noted interests there are, as this will tell you how many other people are potentially offering. This is not secret information, so one of my best tips for closing dates in Scotland is to simply call the selling agent and ask how many other noted interests there are. I would even go further and ask how many of the noted interests are expected to offer.
Some interested buyers (noted interests) may decide not to offer, so although there may be 6 noted interests at the beginning, only 2 people may actually decide to offer. I would also recommend phoning the selling agent in the morning of the closing date, when they will have their most recent information, and ask how many offers they are expecting for the closing that day. You may just find that some other buyers back out and there are even less offers expected.
This information is really important so you can make an informed decision on how much you offer. You will very likely offer a different amount if you are competing against 2 other buyers, compared with what you would offer if you were competing against 8 other buyers.
Include a covering letter with your offer – the best closing date tip!
This is a really great tip. When I am holding a closing date on behalf of my clients it is a huge positive when we receive a covering letter with an offer. The covering letter will provide us with a clear outline of their position, often telling us whether they have a mortgage in principle or are a cash buyer. They will also clarify whether they have a house to sell and what stage the sale or marketing is at. Finally, they may also explain what makes them love the property so much, who would live their and perhaps a little background about themselves.
Selling and buying a home is an emotional journey for many. So being allowed to understand and emotionally connect with a potential buyer really makes a difference. I have had clients who have chosen a lower offer because they really liked the buyers and their plans to create a long term family home.
The covering letter will normally be from the solicitor and attached to the formal written offer. You can ofcourse tell the solicitor what you would like included in the covering letter.
Good practice is for estate agents to advise their clients of the content of the covering letter, or even better to send a copy of the letter to their client along with the written offer. I do this on every occasion as I feel sellers can only make an informed decision on offers if they are given all the information.
Be comfortable with the amount you offer at a closing date in Scotland
Only offer what you can financially afford and what you are comfortable spending on that specific house. If it feels too much, then it probably is. Take guidance from your solicitor and of course check numbers with your mortgage advisor too.
Think long term. Is this your forever home or do you plan to upsize again in just a few years. Lots of things need to be considered.
Most properties achieve over their value at a closing date, but some achieve a modest amount over and others achieve vast amounts over. It is very hard to predict.
I genuinely believe it is worth offering on every occasion as many buyers are surprised when they are successful. Do not be put off by a closing date and give it a go.
Relax, wait and remember there will be others
What is meant for you, will not pass you. I am a firm believer in this when it comes to finding your home. I see buyers elated when they are successful at a closing date and I see others heartbroken when they are not.
You would be very lucky to be successful at your first attempt and sometimes it can take many tries. It is important to remember the house for you will not pass you. If you are unsuccessful then I believe it was not the right house for you. The right house is still to find you.
Hopefully you have found these top tips for a closing date in Scotland useful and helpful. Take a look at these popular posts :
What does ‘Offers Over’ mean in Scotand?
Moving to Scotland from England. Understanding the different processes.