How to put in an offer for a property

Buying a property is an exciting yet complex process, especially if you are a first-time buyer or are new to buying in Scotland where the legal framework differs from England. At Ness Gallagher we aim to simplify the process and guide you through each step to ensure a smooth and successful transaction.

Scotland's property market operates under a distinct legal system, which includes unique practices like the Home Report and the "offers over" pricing strategy. The Home Report, provided by the seller, contains three key documents: a Property Questionnaire, a Single Survey, and an Energy Report. This comprehensive report gives potential buyers crucial insights into the property's condition and market value, enabling informed decision-making.

If you are buying a property, these are the following steps you should take:

1.        Financial preparation – before you start house hunting, it's essential to assess your finances. Determine your budget, taking into account additional costs such as LBTT (Land and Buildings Transaction Tax), legal fees, potential renovation expenses, and also ADS (Additional Dwelling Supplement) if this is a second home or additional rental property. Obtaining a mortgage agreement in principle can strengthen your position when making an offer.

2.        Property search – with your finances in order, you can begin your property search. When you find a property of interest, review the Home Report carefully and arrange viewings.

3.        Engaging a solicitor – engaging a solicitor early in the process is crucial. We will handle the legal aspects of the purchase, from conducting property searches to negotiating terms and ensuring compliance with Scottish property laws. We will also spend time reviewing the Home Report and reporting back any key issues to you. At Ness Gallagher, our experienced team is dedicated to protecting your interests and providing expert guidance throughout your property purchase.

4.        Making an offer – once you've found your dream property and reviewed the Home Report, it's time to make an offer. 

There are a few different steps to making an offer and having it accepted.

·      If you're seriously considering a property, your solicitor will submit a "note of interest" to the seller's solicitor. This indicates your intent to make an offer and ensures you'll be informed of any developments, such as if a closing date is set for offers.

·      Your solicitor will then draft a formal offer letter, which includes the price you are willing to pay (which you should decide based on the market conditions, the Home Report, and your perception of the property’s value); any conditions of your offer such as subject to satisfactory mortgage approval or further survey results; and timescales for proposed dates for the conclusion of missives (the exchange of contracts) and completion (the date you take possession).

·      Your solicitor will submit the offer to the seller's solicitor by the stipulated closing date, if one exists, or as soon as possible if there isn't one. In competitive markets, offers are often reviewed on a set closing date, where the seller considers all bids simultaneously.

If your offer is accepted, the seller's solicitor will issue a qualified acceptance, which may include certain conditions or amendments. Your solicitor will review these and negotiate on your behalf to reach a mutually agreeable set of terms.

Once both parties agree to the terms, the missives are concluded, creating a legally binding contract. At this stage, your solicitor will conduct final checks, arrange for the transfer of funds, and prepare the necessary documentation for the property transfer. On the agreed completion date, your solicitor will ensure that the purchase price is paid, and the title deed is transferred to your name. You'll then receive the keys to your new property, and the rest is up to you to make this your home sweet home!

Whether you are a first-time buyer or a seasoned investor, if you're considering buying a property, contact Ness Gallagher Solicitors today. We understand the local market and are here to help you every step of the way.