THE BUYING GAME
This review of marketing trends in the Borders by Ron Hastings was published in May 2002, however many of the points covered are still valid so we have kept it online for the time being.

An increasing awareness of the charms of the Borders has lead to claims that the market is in danger of overheating.It is certainly true that the continuing demand, fuelled principally by economic factors outwith the area, has had a positive effect on prices. While there have been some recent spectacular examples of sales being achieved at levels significantly above the price at which the property has been placed on the market in general the Borders still represents good value compared with other areas of the UK. The newspapers will always pick up on a good headline and politicians of all persuasions and none are past masters at latching onto the cause of the week. However a one off is not a reliable indicator that the market in general is running out of control. There will always be buyers around who are prepared to pay what it takes to secure what they want whether that is a house or anything else. It is a natural consequence of the free market.

There is little doubt that there are increasing signs that buyers are being confused by the trend that has crept into the Borders market with some agents putting properties on at prices well below valuation. This can lead to potential buyers becoming disillusioned when reality dawns and the agent discloses the seller's true position. While the selling agents may argue that this is a legitimate tactic care should be taken to treat the market -both buyers and sellers with respect. Buyers from the South already have difficulty coming to terms with the "offers over" system adopted by most agents in Scotland. Their enthusiasm is at risk of being dampened if the asking price bears no resemblance to the price that the property is actually expected to achieve. At a local level the practice can have particularly unfortunate consequences for first time buyers who having found a property that they think they can afford, applied for a mortgage and incurred the expense of a survey find their hopes dashed when their offer is rejected out of hand and the selling agents indicate that notwithstanding the asking price the sellers are in fact only prepared to accept an offer well over the advertised price. The picture is further distorted as the surveyor acting for the purchaser is inevitably influenced to some extent by the asking price and the valuation will generally be the limit for most first time buyers particularly if they are relying on a 100% mortgage.

Another trap for the unwary is to assume that all agents are employing the same system of pricing or selling tactics. That is not the case and it is always sensible for anyone considering buying a property to take independent advice at the earliest possible stage on the best approach. While the thought of avoiding the lottery of a closing date holds an obvious attraction an overcooked offer may land a buyer in the uncomfortable position of having to renegotiate when the survey does not come up to value. While a "verbal offer" is not binding in Scotland once the seller's hopes have been built up it may be difficult to renegotiate the price to a more realistic level. On occasions an offer subject to survey may be worth considering as a tactic but do take advice from a solicitor with knowledge of the local market conditions before you make an approach to the seller. It is important to note that a written offer should only be prepared by a solicitor and submitted on your behalf otherwise you could find you are committed to a deal that you cannot get out of.