How to make an offer on a property in Scotland
In this episode of ESPC's First-timers Club, Megan is joined by Hannah Gaddie, a solicitor at Gillespie Macandrew, to discuss how to make an offer on a property in Scotland. They cover everything from how to best prepare to make an offer to what happens once an offer is accepted. The episode also emphasizes persistence and resilience, reminding first-time buyers that the process can be competitive but worthwhile. If an offer is unsuccessful, keep searching, as the right property will eventually come along.
Key points
Preparation before viewing
Before viewing properties, have a solicitor estate agent in place to guide you through the process and a mortgage broker to confirm your affordability. This ensures you're ready to act quickly if you decide to make an offer. Carefully review the home report and property questionnaire for insights into the property's condition, history, and any issues, along with researching the area to ensure it suits your lifestyle and needs.
Making an offer
Once you've decided to make an offer, contact your solicitor estate agent immediately. They’ll review the home report, discuss your offer strategy, and contact the estate agent to gather information, such as other interest in the property or its market status. The solicitor will provide guidance tailored to the specific property, whether to submit an early offer or prepare for a closing date.
Understanding notes of interest
A note of interest is a non-binding declaration made by your solicitor to the estate agent to signal your interest in a property. It can give you time to consider your options or arrange a second viewing. A note of interest doesn’t guarantee the opportunity to make an offer, as sellers are not obligated to wait for your decision or notify you if they receive another offer.
Required documentation
To comply with anti-money laundering regulations, buyers must provide identification, proof of funding (e.g., bank statements, pay slips), and documentation for gifted deposits if applicable. It's vital to complete these checks early in the process to avoid delays when submitting an offer.
The role of closing dates
A closing date is set when multiple parties express interest. All offers must be submitted by the specified deadline, typically at midday. At a closing date, your offer must reflect your maximum willingness to pay, as there’s no opportunity to revise it if it’s not accepted. This stage can be particularly competitive for first-time buyers.
Inclusions and conditions in offers
You can specify items to be included in the sale, such as curtains, blinds, white goods, or furniture, especially if they are mentioned in the sales particulars. Clearly outlining these conditions in your offer avoids disputes later and ensures the final agreement matches your expectations.
If an offer is rejected
If your initial offer is rejected, the solicitor can explore reasons, such as timing or a low bid, and discuss strategies for negotiation or next steps. Rejections at a closing date are usually final, but your solicitor may ask to keep your details on file in case the accepted offer falls through.
Next steps after offer acceptance
Once your offer is accepted, immediately inform your mortgage broker to start the full application process. This is crucial to secure funding for the purchase. Your solicitor will then handle the legal aspects, such as reviewing the title deeds, finalizing contracts, and liaising with the seller’s solicitor. This process may take a few weeks, so patience is important.