The “offers over” system is a distinctive feature of the Scottish residential property market. Here’s a breakdown to help you understand it:

What is the “Offers Over” system in a Scottish property sale?

When a property is advertised with an “offers over” price, it means that the listed price is the minimum the seller hopes to achieve, but they are expecting and inviting potential buyers to make offers more than this amount.

The “offers over” approach is designed to encourage competitive bidding, especially in a sellers’ market where demand for properties is high. By setting an attractive base price, more potential buyers may be enticed to view the property and make an offer.

If there are multiple interested parties, the seller may set a “closing date.” This is a specified date and time by which all interested buyers must submit their best and final offers. Buyers won’t know what others are offering, so it’s a sealed bid system.

Once the closing date passes, the seller and their solicitor will review all the offers received. While the highest offer is often accepted, the seller might also consider other factors, such as the buyer’s financial position, the absence of property sale conditions, or the proposed date of entry.

While the “offers over” system is designed to generate offers above the indicated price, it’s not a guarantee. In a cooler market, or if a property has been on the market for a long time, offers might be closer to the “offers over” price or, in some cases, even below it.

To provide transparency and guide potential buyers, Scottish property sales usually include a Home Report. This report, available to all potential buyers, contains a valuation of the property, a survey of its condition, and an energy report. The valuation can give buyers an idea of the property’s worth, but in competitive situations, properties can sell for significantly more than the valuation.

For buyers in Scotland, it’s essential to approach the “offers over” system with a clear budget in mind and ideally seek advice from a solicitor who can provide insights into the local market and guide the offer-making process.