What is a Closing Date?

What is a Closing Date?

A closing date is the deadline for all interested parties to submit their best and final offer on a property they want to purchase. In Scotland, all bids are ‘sealed bids,’ meaning you won’t know how many other bidders there are or what they’ve offered.

After the set time passes, the selling agent unseals the bids and shares them with the seller, who then chooses their preferred offer. While sellers often choose the highest bid, this is not always the case. Make your bid as attractive as possible by highlighting your buyer status and being flexible or ready to move quickly.

Why are they set?

Closing dates are becoming more common in Scotland due to the competitive property market, where the number of buyers outweighs the available homes. A Closing date allows the seller to set a cut-off date for all interested parties to submit their best offer. This can drive property prices up because buyers don’t know how many other bidders there are.

However, only bid what you believe the property is worth and what you are happy to pay. Your solicitor estate agent can advise on selling prices for similar properties, but the final decision on your bid is yours.

How do they work?

A Closing Date is usually set when a property receives many viewings and notes of interest soon after being listed. The seller often sets this within a few weeks of listing the property. Interested buyers should make a viewing appointment before this date and appoint a solicitor estate agent.

Your solicitor estate agent will note your interest and discuss if you’d like to proceed with a formal offer. After discussing the terms of your offer, you and your solicitor will submit it in writing ahead of the deadline.

After the closing date passes, the seller reviews the bids and chooses their preferred option. Once they accept an offer, the property is removed from the market, and all unsuccessful bidders are contacted.

How do I make an offer at a Closing Date?

To make an offer at a closing date, ensure you have viewed the property and read the Home Report thoroughly. Inform your solicitor in plenty of time that you want to make an offer. Discuss the amount you’d like to bid and the terms of your offer with them.

Include details such as your status as a buyer, whether you need a mortgage or to sell an existing property, how quickly you can move, your flexibility, a suggested entry date, and any other relevant information.

Should I set a Closing Date for the property I am selling?

You don’t have to set a Closing Date when selling a property, but it can help if your property is popular. Your solicitor estate agent can advise on the best course of action for your circumstances.

Can I make an offer before a Closing Date is set?

Yes, you can make an offer before the seller sets a Closing Date.

How will I know if my offer has been successful?

If your offer is successful, the selling agent will contact your solicitor estate agent. This can happen within a few hours of the Closing Date deadline, or the seller may take longer to decide. Your solicitor estate agent will then inform you, and the transaction process will begin.