Offers over and closing dates in Scotland: how they work

Buying in Scotland works differently from the rest of the UK. Most homes are marketed at "offers over" a set price, offers go in through a solicitor, and once missives are concluded the deal is legally binding.

What "offers over" means

An "offers over" price is a starting point set by the seller and their agent. Many Scottish homes sell for more than the asking price, especially where there is strong demand. Other common pricing styles are:

• Fixed price: the seller will usually accept the first offer at that price that meets their conditions.
• Offers around: the seller expects offers close to the figure, above or below.
• Offers over: the seller is inviting offers above the figure.

Noting interest

If you are serious about a property, ask a solicitor to "note interest" with the selling agent. This costs little or nothing and means the agent should tell you if a closing date is set. It is not an offer and does not commit you to anything.

Without a noted interest, a seller can accept another buyer's offer without telling you.

Looking at a specific property? Get a free report on that home, written around what you need.

How a closing date works

When more than one buyer has noted interest, the agent usually sets a closing date: a fixed day and time by which all offers must be submitted.

• Your offer is submitted in writing by your solicitor.
• Offers are sealed. You will not see what anyone else has offered.
• You normally get one chance. There is usually no second round of bidding.
• The seller is not obliged to accept the highest offer. They may prefer a buyer with a mortgage in principle, no chain or a date of entry that suits them.

What goes into an offer

Price matters most, but your solicitor's offer letter also sets out:

• Your proposed date of entry (the date you get the keys)
• Which fixtures and fittings are included, such as white goods or carpets
• Conditions, for example a satisfactory mortgage valuation or survey

Fewer conditions and a flexible date of entry can make an offer more attractive without raising the price.

When an offer becomes binding

An accepted offer is not yet a contract. Your solicitor and the seller's solicitor then exchange formal letters called missives, agreeing the details. Once missives are concluded, the contract is binding on both sides. Pulling out after that point can be very expensive.

This is why it matters to have your finance agreed and to understand the property's costs and risks before you offer, not after.

Deciding how much to offer

There is no single rule. Things to weigh up:

• The Home Report valuation, and how far over it you can afford to go (see offering over the Home Report valuation)
• Recent sale prices for similar homes nearby
• How long the property has been on the market
• The total cost to buy, including LBTT
• Your walk-away figure: the most you would pay without regret if you lost out

Set your maximum before the closing date, not on the day.

Offering before a closing date

Sometimes a buyer makes an offer early, before a closing date is set, hoping the seller will accept it rather than wait. This can work if the offer is strong and the seller wants certainty. Agents may respond by setting a closing date so other interested buyers can offer too.

Fixed price properties

With a fixed price, the seller will usually accept the first offer at that price that meets their conditions. Speed matters more than strategy. Have your finance and solicitor ready before you view.

After your offer is accepted

1. The seller's solicitor replies with a qualified acceptance, agreeing the price but adjusting some terms.
2. Solicitors exchange further letters until everything is agreed.
3. Missives are concluded and the contract is binding.
4. On the date of entry, funds are transferred and you get the keys.

The time between acceptance and conclusion of missives varies. Your mortgage offer should be in place before missives are concluded.

Can a sale fall through?

Yes, until missives are concluded. Either side can usually withdraw before that point, and a seller can accept a higher offer from someone else. This is less common in Scotland than in England because missives are often concluded quickly, but it does happen.

Common mistakes

• Not noting interest, then missing the closing date
• Setting your maximum on the day, under pressure
• Adding conditions you don't need
• Offering more than you can fund, because the lender lends on the valuation
• Forgetting that a higher price also means higher LBTT