How to make an offer on a house in Scotland

Buying a house is a major milestone, and likely one of the largest financial transactions you’ll ever make. Whether you’re a first-time buyer or a homeowner looking to move, it can be a stressful experience. We’ve put together some tips and guidance to explain the process of submitting and negotiating an offer on residential property in Scotland.

Why the Scottish home-buying process is unique

The process of purchasing a home in Scotland follows a unique legal framework that differs from other parts of the UK. Read on to learn about the unique aspects that set Scotland’s residential property buying process apart and discover how you can use this knowledge to strengthen your offer.

Process from viewing to completion

The typical Scottish home-buying timeline begins with arranging a mortgage in principle. After finding the right home, buyers then work with their conveyancing solicitor, who coordinates with the seller's solicitor and the estate agent to manage the legal process and negotiation. After your offer is accepted, the next steps involve checks on title deeds, confirmation of finances, and agreement on a settlement date. Finally, the missives are concluded.

Home Reports

A key distinction in Scotland is the seller’s obligation to provide a Home Report before marketing the property. The Home Report includes a Single Survey, an Energy Performance Certificate, and a property questionnaire, giving potential buyers a detailed overview of the home’s condition and history. Having this information upfront helps buyers formulate a reasonable offer, reduces uncertainty, and supports smoother negotiations.

You can request the Home Report from a seller or selling agent, who must give you a copy within nine days. Most homes in Scotland require a Home Report, however there are some exceptions, such as new builds, which do not.

Acceptance and missives

In Scotland, your purchase becomes legally binding at an earlier stage than it does elsewhere in the UK. This helps to reduce delays and the chance of offers falling through.

Under Scots law, the legal process to make an offer on a house involves exchanging formal letters, known as “missives,” rather than a standalone exchange of contracts.

Your initial offer on a property becomes the first part of the missives. If the seller accepts your offer, their solicitor will issue a written acceptance, also known as a “qualified acceptance”. This confirms their acceptance of your offer and details any conditions the seller wants you to agree to before the sale is fully agreed. Both you and the seller then enter negotiations, exchanging further letters until the offer is accepted without qualifications. At that point, referred to as “concluding missives”, both you and the seller become legally obliged to complete the sale.

Preparation: Before making an offer

Whether you’d like to move to a Georgian Townhouse in Stockbridge, or a flat in Leith, you’ll need to do some due diligence before making an offer. You will need a clear understanding of your own finances, current market conditions, local house prices and how the asking price can vary between similar properties.

Prepare your finances

When planning to make an offer on a house in Scotland, it’s crucial to organise your finances early, especially in a fast-moving market.

Being prepared can help assure the estate agent and the seller that you’re a serious buyer who can proceed quickly. This can put you in a good position when looking to make an offer on a property.

Below are key steps to consider when organising your finances:

Cash buyer vs. mortgage buyer

A cash buyer has immediate funds, which often puts them in a good position to achieve a quick sale if the seller wants to proceed quickly.

Mortgage buyers, however, can still demonstrate they’re serious if they have a mortgage agreement in place and show they can move ahead without delay.

Porting a mortgage and early exit fees

If you already have a mortgage on another property, consider whether you can ‘port’ it, i.e. transfer it to the property you’re buying. This might save you from and due early exit fees, but check the details with your mortgage adviser or provider to be sure. If you decide to switch deals or lenders, factor in any extra charges when calculating what you can afford.

Mortgage agreements (Decision in Principle)

If you’re not a cash buyer, obtaining a mortgage agreement or Agreement in Principle (often called an AIP) from a mortgage lender is a good rule for demonstrating your financial position. This will not only guide you on what properties you can afford, but it shows a seller, their solicitor, and the estate agent that both you and your mortgage provider are confident you can afford the purchase. It’s usually free and can be arranged with a mortgage adviser or by going direct to a lender.

Although you can’t complete the full mortgage application until you have had an offer accepted, having an AIP allows you to enter an offer knowing you are likely to have the means to pay the purchase price.

Plan for all costs

Budgeting for all expenses is vital. In Scotland, you’ll likely need to cover:

• Legal work: A conveyancing solicitor is required to handle the legal process, from entering a Note of Interest and submitting your offer, to checking title deeds and preparing contracts.
• Estate agency fees: Applicable if you are instructing an Estate Agency to sell a property.
• Land and Buildings Transaction Tax (LBTT): This replaces Stamp Duty in Scotland and may apply depending on the sale price. First time buyers have a higher exemption threshold.
• Survey fees: In some cases, you’ll pay for additional surveys beyond the Home Report (structural or damp surveys etc.)
• Additional or unexpected costs: Whether it’s a higher offer required to secure your new home or unforeseen expenses that crop up, ensure your financial situation has room for flexibility. This might include repairs highlighted in the Home Report, or if you're a mortgage buyer purchasing a property above the Home Report value, you'll have to cover the extra amount yourself.

Accurate planning helps you avoid any last-minute issues that could delay your offer on a property.

Understand the local market

Analyse market conditions

Consider the overall market conditions - whether it’s a buyer’s market (where properties are slow to sell and other buyers are scarce) or a seller’s market (where demand is high and offers often exceed the asking price).

In a buyer’s market, waiting to save up a bigger deposit might allow you to negotiate even better terms, but there’s a chance interest rates or personal circumstances could change while you wait.

In a seller’s market, you may end up needing to move quickly and paying more than you initially planned. Still, if you’ve found your perfect property, that premium could be worth it in the long run, especially if you anticipate staying put for many years.

Ultimately, balancing the risk of paying extra now against the possibility of missing out altogether is a personal decision, one best made with a clear understanding of your finances and long-term goals.

House prices and considerations

Begin by researching sold prices and Home Report values for comparable homes in the same area, focusing on key features like size, condition, and location. Property search website ESPC has a great tool to help you research property sold prices in Edinburgh.

Compare these figures against current house prices and the seller’s price to gauge whether it aligns with true market value. This gives you a better idea of a realistic asking price and helps you decide your maximum budget according to your own financial situation.

When you find the right property, factor in the seller’s situation: they may want to sell quickly, putting you in a stronger position to negotiate. Keep an eye on how swiftly properties in your chosen location are being sold, if the property you are interested in has been on the market for a while, you may be able to secure a lower price.

Arranging viewings

Before you make an offer on a house, schedule viewings through the estate agent or seller’s solicitor. This is your chance to ask questions about the local market, check the seller’s situation (e.g. if they need a quick sale) and assess whether the property suits your needs.

Pay close attention to the condition of the house, the neighbourhood amenities, and any factors that might affect your mortgage approval or future resale value. Taking detailed notes can help you compare house prices and sold prices for similar properties in the area.

For more tips on what to look for when viewing the house, view our property viewing checklist.

Selecting and working with a solicitor

A solicitor’s role in Scotland

In Scotland, a formal offer on a property must be submitted by a qualified conveyancing solicitor. Verbal agreements aren’t legally binding, and informal offers are generally ineffective. Your solicitor can submit a Note of Interest, draft and review your offer on a house, handle title deeds, and manage crucial contract details, ensuring the legal process aligns with Scots law.

Choosing a solicitor who understands the local market can help you enter negotiations in a strong position. Conveyancing solicitors are legal experts responsible for reviewing title deeds, negotiating the purchase price, and preparing legal documentation on your behalf.

Submitting a Note of Interest

A Note of Interest formally alerts the estate agent and the seller that you’re a serious buyer ready to make an offer on a house. In the Scottish legal process, your solicitor lodges this with the seller’s solicitor or estate agent, keeping you informed of any changes to the asking price or if a closing date is set.

You can withdraw at any time, but let your solicitor know if you decide to pursue other properties or if your financial situation changes. While you may note interest in more than one property, it’s best to do so only if you genuinely plan to submit an offer on a house.

If there’s little competition, you’re a cash buyer, or the property is at a fixed purchase price, you might go straight to a reasonable offer without noting interest first.

Establish your offer strategy

How much to offer

Establishing your strategy for how to make an offer on a house starts with understanding market conditions and local house prices. In a competitive seller’s market, you may need to submit a higher offer, sometimes above the Home Report valuation, to stand out from other buyers. Or, if the property has been on the market for a while, offering a lower price might also work.

Tip: avoid round numbers. Instead of offering £250,000, consider £250,500 or £251,000. This can set your offer apart, especially if there are multiple bidders at a closing date who have all submitted a round figure.

Other factors to consider when establishing your offer strategy include:

Offers over

Most properties in Scotland are listed with an ‘offers over’ invitation. Properties using the ‘offers over’ system are usually listed at 10-15% below the Home Report valuation to attract interest and encourage potential buyers to make an offer using the list price as a starting point.

Usually, the seller would expect to achieve a sale price higher than the listed ‘offers over’ amount.

Closing dates

A closing date is often set when potential buyers have noted interest in a property. This deadline prompts prospective buyers to submit their best price, often via sealed bids. Be sure to finalise the maximum budget you can commit before the closing date, as this is usually your last chance to place your offer on a property.

Sealed bids

Sealed bids are common in Scotland when buyer interest is high. A closing date is set and offers are submitted confidentially through your solicitor. The seller then reviews all bids at once.

Because this is a blind bidding system, you usually get only one chance to make your best price. If the property goes to closing, ensure your mortgage lender and legal representatives are ready so you can move swiftly if your offer is accepted.

Chains

Being chain free can significantly strengthen your negotiation process. Sellers often prefer a buyer who does not have to sell another property, as this reduces the risk of a sale falling through or moving dates moving. Highlighting your chain-free status to the seller’s solicitor and estate agent can give you a stronger position if competing with offers that come from buyers in a chain.

Ensuring a quick sale for motivated sellers

Some sellers simply want to sell quickly. Demonstrating flexibility on your date of entry and having a mortgage agreement in principle can make your offer more appealing than a higher offer from someone unable to move as fast.

How to submit an offer on a house in Scotland

To officially make an offer on a residential property in Scotland, your conveyancing solicitor must contact the seller’s solicitor or estate agent on your behalf. While you may discuss an initial offer verbally, it only becomes effective when formally submitted in writing by a solicitor.

What to include in your offer

• Price: State the purchase price you’re willing to pay. Consider the asking price, home report value and any highlighted work, local market trends, and sold prices for similar properties in the same area.
• Date of entry: Propose a suitable date to move in. This can be negotiated, but a four to eight week window is common.
• Conditions: Outline any conditions, such as a mortgage agreement, survey requirements, or your need to sell another property first. If you’re a cash buyer or chain free, mention this to show you’re in a good position.
• Proof of funds: Provide evidence of your financial situation, whether via a mortgage lender or direct funds, to demonstrate you can afford the offer you’ve made.

Is an offer legally binding?

In the Scottish legal process, your offer and the seller’s acceptance form part of the missives. These are not legally binding until both you and the seller agree on all points and conclude the missives in writing. Once the seller accepts without further qualification, both you and the seller become legally obliged to proceed with the sale. Withdrawing after this point can incur financial penalties.

Withdrawing an offer

Before missives are concluded, you can withdraw your offer without penalty. Common reasons include failing to secure a mortgage, receiving an unfavourable survey, or encountering unforeseen legal issues with the title deeds. After missives are concluded, you may face substantial costs if you decide to back out. Always consult your conveyancing solicitor for advice on withdrawing or revising your offer.

Properties marked as ‘Sold STC’

A property marked as ‘Sold Subject to Contract’ (STC) indicates the seller has accepted an offer, but the missives have not yet been concluded, so the deal is not yet legally binding.

Putting an offer on a house sold STC is called ‘gazumping’ and is not a common practice in Scotland. In some cases, you might still be able to enter negotiations and submit a better offer, but it depends on the stage of the legal work of the existing agreement. Always consult your solicitor before proceeding with an offer on a property that’s already Sold STC.

If your offer has been accepted and another offer appears at a higher price, discuss your options with your solicitor. You can either increase your offer, negotiate, or walk away. Weigh up any additional costs you’ve already paid (such as survey fees) and decide if it’s worth matching or exceeding the new offer.

Once your offer is accepted

Legal obligations

In Scotland, after your offer has been accepted, the transaction only becomes legally binding after negotiations, once missives are concluded. Stay in close contact with your solicitor so you can respond quickly to any negotiations or legal queries.

Mortgage application and legal work

Once you have an offer accepted, notify your mortgage lender or mortgage adviser right away so you can move from an Agreement in Principle to a full mortgage application. The sooner you complete this step, the sooner the lender can issue a formal mortgage offer. Promptly provide all the contact details and documents they request.

Meanwhile, your solicitor will begin the legal work on the purchase. This includes examining the title deeds, checking for any burdens or restrictions on the property, and managing searches (like local authority checks). Working closely with your solicitor at this stage helps ensure the deal proceeds smoothly and that any legal issues are resolved before you exchange contracts.

Payments and deposits

In Scotland, you generally do not pay a holding deposit when the seller accepts your offer. Any funds due (such as the purchase price minus your mortgage amount) are typically paid at the time of completion (settlement). However, some builders or developers might request a reservation fee for new-build homes, so always confirm the process with your solicitor.

Most payments toward the property will happen shortly before or on the agreed date of entry once missives are concluded. At this point you’ll pay the agreed purchase price, this is often referred to as your completion date. The seller’s solicitor will ask your lender for any funds covered by a mortgage, and you will pay any remaining funds in cash via your solicitor.

At this stage you will also need to pay your solicitor’s bill, minus any deposit previously paid. Other outstanding costs, such as searches, will be included in the bill along with other fees paid on your behalf.

This final step allows you to collect your keys and move into your new home. Your solicitor will arrange for the signed title deeds to be registered with the Land Register, and official ownership of the property will then be transferred into your name, bringing the legal process to a close.

Further advice

If you have any questions about how to make an offer on a house in Edinburgh or simply want additional guidance tailored to your individual circumstances, get in touch. As a solicitor estate agency, we provide a comprehensive, all-in-one service for your property needs. Our friendly local experts understand the intricacies of Edinburgh’s property market and will tailor their support to your specific requirements to help you on the path toward your new home.