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Assuming that you mean Scotland.
In my experience it's normal for houses, especially desirable ones, to go above asking due to the nature of the blind bidding system. From what I understand though the market in and around Edinburgh has gone absolutely mental. My brother has been trying to buy a place for the last 6 months and every house he's bid on goes for a minimum of 25% above asking one went for almost 40% above asking.
As far as the effect that these high successful bids have on future asking prices it's hard to say. I'm not an estate agent but in my experience estate agents in Scotland are less aggressive than those in England as many of them are also solicitors firms and regulated by the law society of Scotland. Add to this the blind bidding system means that even if the price increases the asking price increases it won't be to the highest asking price of comparable properties in the street / area.
Bobbo-
Yeah, Scotland. Glasgow in particular.
We were aware that things in the desirable suburbs were going like this but thought that being a bit further out, in a small village with no high school, it wouldn’t be so bad but apparently not.
It kinda seems like whatever you’re selling, the market dictates the value so with us bidding over the home report valuation and still missing by quite a bit then surely the home report is just wrong if you know what I mean.
M_V
Ok so, I understand things work a bit different ‘oop here, norff of the border’ but… our market seems to be going a bit mental right now. I understand this because Mrs M_V and I recently found a house we’d have liked, we viewed it on Friday and it went to closing on Tuesday. We felt a bit under pressure so made an offer that wasn’t as high as we could have gone but we weren’t successful, by quite a margin.
It’s ended up going for almost 25% over the asking price.
So what I’m wondering is, when the market ‘calms down’ does that mean that property prices just go up to match what the market is paying?
Ie, this property was on the market at, say, £100k, sells for £125k so 25% over asking. 6 months time market has ‘calmed down’ and their neighbour decides to sell, are they going to list at £100k and sell for £105-110k or are they going to list at £120k and sell at £125k which looks like a fair price as its a smaller % over asking but actually it’s same price?