Looking to buy a home in Edinburgh, the Lothians, Fife or the Scottish Borders?

ESPC’s monthly House Price Report is the perfect place to find out key data from across the local market. This can be useful in your property search

If you’re new to home buying and property selling or are unsure of the local market, some of the terminology used may feel unfamiliar. That’s why we’ve created this helpful video to the House Price Report which explains some of the phrases used. It also points out the data you should be looking for and why!

What does Average Selling Price mean? 

The “Average selling price” is the amount of money paid for a home in a specific area.  

This figure is an average across all the areas mentioned and so this can vary from region to region. It's not the same as the property’s value or Home Report valuation figure.

Why you should care about average selling price?

As this figure is an average, it can give you a good idea of the performance of the wider market.

For example, if the average selling price is higher than it was in the previous year, it means that buyers are paying more money for properties. Likewise, if the average selling price is less than the previous year, that means that buyers are paying less than in previous years.  

Usually a higher selling price is good news for sellers and a lower selling price is good news for buyers. But this isn’t always the case.

Unless you’re buying for the first time, most buyers are also sellers. So, if the average selling price is increasing it may mean you’ll get more money for your current property, but it likely means that you’ll have to pay more for your next purchase.

Likewise if the average selling price is lower than previously, you may expect to get less for your home but you’ll see the benefit of that when making your onward purchase. 

What does Time to Sell mean?

"Time to Sell" is how long it takes for a property to receive an offer, measured from the property being listed on espc.com to an offer being accepted.

Things like seasonality and demand affect this duration. For instance, summer sales might be slower due to holidays, while autumn can see quicker sales before Christmas. A fast "time to sell" suggests high demand and low supply, while a slower one indicates a relaxed market with more choices and less urgency to buy. 

The best way for you to prepare for a fast-moving market are:  

  1. Get in touch with your ESPC solicitor estate agent ahead of viewing any properties to ensure they can make any offers on your behalf promptly and avoid missing out on your dream home. 
  2. Likewise, you can sign up for ESPC property alerts so you can be notified of when a home that meets your criteria comes to market allowing you to get ahead of the game.  
  3. Always check ESPC first – 80% of our properties are available only on espc.com 72 hours before they are listed on any other property portal. You can spot these properties as they are listed with the ‘exclusive’ tag. 

Image of houses on stack of coins

What does Percent of Home Report Valuation Achieved mean?

The Home Report valuation, determined by a surveyor, is crucial in buying or selling a home. It considers factors like size, property type, condition, location, and market trends. Home Reports are mandatory in Scotland for home sales. Here's more details about what is included in a Home Report. You can instantly access the Home Report and its valuation on ESPC.com property listings. 

The percentage of Home Report valuation achieved tells us how much of the Home Report value buyers typically pay for a property.

For instance, if the Home Report value is £100,000 and the buyer pays £110,000, it's a 110% as they paid 10% above the property's value.

When buyers pay more than the Home Report value, it's called a "premium." This higher price can make their offer more appealing to the seller, acknowledging that it exceeds the property's actual worth. 

Why is the figure important?

This is vital as it informs buyers about potential property costs. If the ESPC House Price Report shows homes selling at an average 104% of the Home Report value, buyers may need to budget for an extra 4%.

Mortgage lenders typically lend based on the property's value or the purchase price, whichever is lower. As it's uncommon to pay below the Home Report value in the current market, the lender usually considers this figure. Thus, any amount paid above the Home Report valuation must come from the buyer's own funds and cannot be borrowed from the lender. 

Why you should care about the percentage of Home Report valuation paid in the ESPC House Price Report?

This guide benefits both buyers and sellers by setting price expectations. It's an average figure but understanding current trends can boost your offer's chances. Consult your ESPC solicitor estate agent for precise guidance. 

Buyers can use this data to assess finances and adjust budgets accordingly. A higher 'premium' may require cash for bids, while a lower percentage may lead to exploring more expensive properties on espc.com. 

For sellers, this metric will help set expectations for what you could receive for your home. It may also help you decide on what offer to select when the time comes. 

What does Sales Volume and Number of Listings mean?

Sales volume reflects properties under offer on espc.com in the last three months compared to the previous year.  

Number of listings represents homes entering the property sales market in the same period, also compared to prior years. 

These metrics provide a comprehensive market view. Sales volume gauges market demand—more sales in a fast market, fewer in a slow one. Listings reveal homeowners' willingness to sell. 

Both metrics offer insights for both sellers and buyers. Sellers monitor sales volume to assess market competitiveness, while buyers track listings to gauge available stock. Fewer listings may mean a competitive market; more listings suggests a balanced, slower market. 

Old street in Edinburgh

What does Closing Date mean?

Closing dates occur with high demand. A high percentage indicates strong market demand. You may face bidding at a closing date when expressing interest. 

Conversely, a lower closing date percentage suggests reduced chances of bidding in this manner. 

Note that percentages don't guarantee outcomes. High percentages may still result in accepted offers without closing dates, and vice versa. The ESPC House Price Report helps you assess the likelihood of a property going to a closing date, aiding your preparation.