Options for Prospective Buyers When Making an Offer
1. Noting Interest
• Before making an offer, buyers can ask their solicitor to “note interest” in a property. This ensures they are informed if a closing date is set and gives them a chance to prepare an offer. However, it is important to note that prospective buyers can make an offer at any time, and sellers are entitled to accept an offer at any time without going to any closing date.
2. Making an Offer
• Offers in Scotland must be made formally through a solicitor. The offer letter includes the price, proposed date of entry, any items to be included, and any conditions (such as being subject to mortgage approval).
• For “Offers Over” properties, buyers typically offer above the asking price, especially if a closing date has been set and competition is expected.
• For “Fixed Price” properties, buyers can offer the stated price (or sometimes slightly less if the property has been on the market for a while), and if their offer is the first acceptable one, the property is usually secured.
3. Closing Date
• If multiple buyers note interest, the seller may set a closing date. All offers must be submitted by this deadline, and the seller will choose the best one—usually the highest price, but sometimes other factors (such as flexibility on the moving date, or confidence in financing) can influence the decision.
4. Negotiation
• If there is no closing date and little competition, buyers may negotiate on price and terms, especially for properties that have been on the market for some time or are listed at a Fixed Price.
5. Missives and Contract
Once an offer is accepted, solicitors exchange formal letters (missives) to agree on the terms. When the missives are concluded, the contract is legally binding.
Buyers should work closely with their solicitor to note interest, prepare a strong offer, and understand the risks and opportunities of each pricing strategy in Edinburgh’s dynamic property market.