Closing the sale once more

By Heather Rose
Posted: 2009/06/12

CLOSING dates are once again becoming a feature of the Scottish property market - a sign that people are househunting again.

Edinburgh property solicitors Warners are reporting a steady increase in the number of closing dates being set.

Scott Brown, estate agency partner, said: "Nobody is saying that the Scottish market has returned to how it was before the slump.

Sales are still down at every property firm and we have seen falling house prices across the board over the past 18 months.

"However, the return of closing dates is a welcome sign that things are taking a turn for the better. There is still a lot of interest from prospective buyers for properties in Edinburgh and we have noticed that, if a home is particularly popular, the sellers are now able to set a date for offers to be received.

"At the end of April we had closing dates on three properties in Edinburgh - each of which encouraged multiple offers from buyers. If you compare that with the period before Christmas, where you were lucky to get any offers at all, it's a very encouraging sign."

This rising interest from potential buyers has been boosted by an increase in the number of properties for sale at offers around prices, rather than the offers over price traditionally used in Scotland, or properties being marketed at fixed prices. Mr Brown believes this is due to the introduction of Home Reports late last year as these include a survey and valuation.

"In the past, properties would have been put up for sale at offers over or fixed price but we are now seeing a definite shift towards offers around. It offers more clarity over the value that the seller wants for their property, and we're finding that buyers prefer this to the previous scenario where they were often paying 25 per cent or more above the offers over price.

"The other advantage with offers around for the seller is that they don't set a limit for the amount that their property can potentially be sold for. If you sell at a fixed price you can't get any more for your home than that value, whereas with offers around there is the possibility of getting a higher price if there is competition among buyers.

"It appears that would-be buyers are more interested in offers around than anything else at the moment, and we are finding that it is these properties which are attracting the closing dates for offers."

Information:

01316624747; www.warnersol.com