Buying or selling - make the right move

Partner Robert Telfer on the state of the housing market in Glasgow and the West

Despite the challenging economic climate, and concerns about rising interest rates, the property market remains competitive. Demand outstrips supply.

Yes, average house prices dropped by several thousand pounds in the first quarter of the year as potential buyers held off to see what would happen to interest rates and inflation. However, as we move into summer, we are experiencing a high volume of enquiries with clients continuing to bid well in excess of Home Report value. It continues to be a seller's market and if you are thinking about placing your property on the market, now is as good a time as ever.

To give some examples, a client recently offered £170,000 on a bungalow in G53 valued at £150,000, a decent offer but it was placed 13^th out a total of 27. In another case, a one bedroom flat in Cathcart was on the market at offers over £85,000 with a Home Report value of £90,000. It sold for more than £120,000.

Properties in East Renfrewshire continue to sell very well, largely due to the popularity of local schools. For example, an extended bungalow in Clarkston recently sold 25 per cent over value. In Pollokshields, a client narrowly secured a 4-bedroom sandstone by offering 21 per cent over value. Of course, not every property will deliver such a high return. Some properties do sit on the market for longer and some sellers may have to consider reducing the asking price or setting a fixed price if they are not getting the desired interest. For most properties in Glasgow and the West, however, expect to pay a minimum 10-15 per cent over value.

Given the high level of competition, it often takes clients several attempts to secure a property. The market is very fast moving. Preparation is key to success so calculate your affordability before making any offers. Remember you will only be given a mortgage to the value of the property. Anything over value must be funded from your own resources. I always recommend speaking to a mortgage broker. They have access to a wide array of products which are not necessarily available directly to borrowers. Speak to an estate agent and have your existing property ready for market if you have something to sell.

Clients often call in to the office on a Monday morning after having viewed a property at the weekend and ask me to submit an offer straight away. By the time I have given advice, taken instructions and called the estate agent, there are several notes of interest from other parties all who are keen to offer. Generally, my advice would be simply to note interest and hang fire until a closing date is set - unless you are confident that your early offer is simply too good for the seller to turn down. There are, of course, cases where the early bird catches the worm but if your offer is ultimately rejected because the seller wants to go to closing and is keen to receive a range of offers, you have set a benchmark and shown your hand. There is nothing to stop a seller disclosing to other parties during viewings the offers that they have previously turned down. The result is to hike up expectations and ultimately the sale price.

Securing a property in this market is not an exact science. A lot of clients looking to purchase loath closing dates because they are drawn out, you only get one crack at it, and there tends to be no room for negotiation if the seller declines your offer. The best advice is to offer only what you feel you can realistically afford – don’t feel compelled to pay more than you think a property is worth. Being outbid is disheartening but being proactive, prepared and ultimately patient often leads clients to success.

If you'd like to speak to Robert, call him on 0141 649 9552.