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  • it depends on the market

    • in less spicy markets, you can probably work it like the english system and offer what you think you want to pay, with a recognition that the HR number is the 'value' and that's what you'll get a mortgage against. if the thing has been on the market for a while, you can even get properties for under HR. it happens

    • in spicy markets, listings will typically go to a closing date - i.e. sealed best and final offers - and in these instances you'd typically look at the HR number and then add a percentage on top of that (again how high you go depends on (i) the cash float you have to cover the gap between the mortgageable value and what you offer and (ii) how SPICY the market is (e.g. in our last sale, we had 13 bids at closing which ranged from 5k UNDER HR to 25/30% OVER the HR). they typically say in a buoyant market you need to be bidding 10-15% over HR to be in with a shot

  • Is 30% over valuation the highest you've seen?

    Highest I've seen is 26.5% over valuation. My gut feel is 30% over is the maximum any sane buyer would stretch to.

    (Assuming a spicy market and properties without any significant defects)

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