Homes for sale in Scotland are typically priced according to the Home Report valuation, which is determined by building surveyors who are members of the Royal Institute of Chartered Surveyors (RICS). To arrive at a valuation figure, surveyors evaluate a range of data, including recent sales information of comparable property types, and take account of individual characteristics of the property, such as alterations, improvements and the general condition, plus the specific location.
With the official valuation, and after discussion with the selling client, the solicitor-estate agent can set a price.
Home sellers in the buoyant Edinburgh market have the benefit of the Offers Over system which typically sets a ‘headline price’ slightly below the official valuation and asks buyers to make sealed bids over that figure. On the Closing Date, offers are compared and the highest bid typically reflects the maximum the market will bear.
Compare this with other markets where, without an official valuation (Home Report), sellers might ask for an unrealistic fixed price and then be forced over time to keep lowering the price until a buyer comes along. This can be a long time, during which the market perception of the property is diminished.
In any case, it is important to take heed of the market reaction to a property and, when appropriate, adjust accordingly.