Understanding Closing Dates in the Glasgow West End Property Market
Buyers often ask about closing dates in the Glasgow property market, particularly in the bustling West End. Let’s delve into the reasons behind closing dates and explore the dynamics of the Glasgow West End property market.
What Is a Closing Date and Why Are They Used?
Closing dates are set when there is substantial demand for a specific property. Instead of navigating negotiations among multiple buyers, a closing date is a fixed date and time announced to all potential buyers.
Offers Submitted: Interested buyers must instruct their solicitors to submit a formal offer to the estate agent by the specified deadline. This is a best and final offer, and there is no scope to negotiate once submitted.
Offer Review Process: Once all offers are received, they are organised, audited, and prioritised based on price and buyer position. Contrary to popular belief, the highest offer doesn’t always win. As estate agents, our goal is to secure the best outcome for our clients. While price is a critical factor, other considerations like buyer position, financing, and timelines also play a role in the decision-making process.
Offer Acceptance: Once the preferred offer has been accepted, the sale then goes into the legal process, and all unsuccessful bidders are advised.
Three Prices for Glasgow Properties
Glasgow properties often have three price points, leading to some confusion for buyers who are new to the Glasgow market. These three price points are:
- Asking Price/Offers Over Price: This is the price displayed on property portals like Rightmove, and our own listings. It typically falls 5-10% below the Home Report value but will vary depending on the estate agent’s pricing strategy.
- Home Report Value: This value is determined by a chartered surveying firm after conducting a physical survey. It is provided to all potential buyers for review.
- Sales Price: The sales price is what the property eventually sells for, whether through a closing date or a direct offer.
Offering at Closing Dates on Glasgow Properties in 2023
Offering on properties in Glasgow in 2023 involves considering various factors:
- Location: The property’s location significantly influences the offers over Home Report price.
- Property Condition: The property’s condition affects its value and your offer.
- Market Interest: The level of interest in a property can impact the competition and offer strategy.
- Closing Dates: The timing of a closing date, if set early, can affect your approach.
Offering in the Glasgow West End
The Glasgow West End property market has experienced high demand in recent years, often resulting in offers exceeding Home Report values by significant margins, and mostly always at closing dates. However, the landscape is evolving. Interest rates are rising, affecting mortgage renewals, and this is leading to more conservative offers.
In Q3 2023 to date, we have observed a reduction in average offers over Home Report percentages to 11.9%, down from 15.4% in Q2 2023. This trend, coupled with increased property availability, is tempering offers over Home Report values.
If you’d like any advice on buying or selling your a property in Glasgow, you can reach us on 0141 248 8726 or by filling out the form below.