Offers in excess of.....

[NK254afb31X117b2a12183]

how do you interpret this??

[SoupDragon]

TBH, I ignore the "in excess of" but assume they won't really consider offers below that amount unless really really desperate. My Current Favourite House is an OIEO one and I'd probably offer only the base price (although I've only viewed it from the website as I'm not actually in a position to move just yet :o)

[NK254afb31X117b2a12183]

lol, I'm interested to see what people think because it is a house I offered on, and had my offer rejected, so I walked away..... now they have reduced the price to less than my offer (????) and put it down as in excess of... (but that figure is less than my offer, confused!?!)

[SoupDragon]

It's very odd. I think the OIEO thing is daft TBH. It seems to be common in Scotland I think where they use a different system (I only have experience via Escape from the Country and such like!)

Are you going to make your offer again or have you bought elsewhere?

[SoupDragon]

Presumably a vendor waits for several offers and picks the highest or something.

[NK254afb31X117b2a12183]

Well I was wondering what they were trying to achieve, and for the life of me can't think of any tactics or schemes that they are aiming for - I'm keen to offer again but tbh they've shown me that they've had no other offers and maybe mine was too high in the first place so I'd offer silly money like .... and 10 lol, shouldn't have messed me round eh, I might be their only ever offer (well for the next few months at least) - it is driving me mad really. Have found another house which is lovely but not as practical for me and family.

[Blackduck]

I'd offer either the exact figure, or just over and see what happens. Forget about trying to guess why they are doing it, if you like the house go for it.

[FireOverBabylon]

We nearly nought a house with an OIEO price - the sale fell through because of strtuctureal problems with the chimney. In a seller's market OIEO works well, because it encourages counter bidding but in the current climate it's pointless. Our solicitor thought it was hysterical "are they aiming for an offer of OIEO and 1p?". I'm bemused as to how they think they're going to get offers higher than the OIEO. Ooh, I'll offer an extra £20k because I love it so much . Like the OP, I'd expect this to be the lowest price theyll accept, which I guess helps to let you know where you stand as a buyer.

[FireOverBabylon]

Oh, and for the OP, we got the bid on our house accepted at exactly the OIEO price, so I'd go back to the vendor and offer them what they're now stating as their minimum sale price and see what happens.... Bargain!

They can't be that keen on a sale if they turn that down - might be worth saying as much to the estate agents and see what they say if the owners are turning down good bids twice.

[oreocrumbs]

It sounds like they rejected your offer expecting you to go higher or for the hoards of people out there buying houses to get all excited over it and get into a bidding war .

Now they have had to reduce it because they threw their buyer away (you) and no one else has come forward.

I always ignore OIEO. In fact I ignore any estate agents pre fix, I offer what I want and I am very cheeky!

In your shoes I would make an offer under the asking price. Tell them that while you remain keen to buy the house, as time goes on it continues to fall in value in this market, so you won't be going anywhere near your original offer.

[SoupDragon]

I"d reduce my offer to maybe halfway between the OIEO price and the original offer if you think a) it's a fair price for the property and b) the vendors aren't going to mess you around.

[Rhubarbgarden]

What Oreo said.

[DamselInDisgrace]

I ignore OIEO too. Or, more usually, I completely ignore the house as it suggests that the owners aren't actually interested in sensible offers.

There's a house on my street that's been on the market for nearly 2 years now. They started at £265k (in a city where you can easily buy a nice 3 bed semi in a good area for £100k less than that) and subsequently reduced it to OIEO £249,950. I take it this means they've realised that no one is going to pay over the stamp duty threshold but haven't come to terms with the fact that they are only likely to get £225k for it. The problem is, they bought the house in late 2007. It's still on the market, but they never get any viewings (presumably because no one thinks they'll be willing to take a realistic offer).

Another house in the area has been on for at least a year at £270k. They've just put it on with yet another agent at OIEO £280k, which makes no sense at all. It's still listed at £270k with the other two agents. I doubt the new OIEO price is going to inspire anyone.

A new build one is on at OIEO £270k too and absolutely won't sell. The estate was built in 2006 and the current owners paid £270k in 2007. They obviously can't afford to/don't want to take a loss, but have been very unlucky to have bought when they did. Almost nothing on that estate sells and any 4 beds (like this one) tend to go in the region of £225-250k. The EAs still value them at £265-£325k regardless.

[NK254afb31X117b2a12183]

Thanks for your thoughts, I think they are either totally out of touch with what is going on in the economy or they have been very badly advised by their estate agents, Oreo, I think you sum it up..... I'll prob do what you said with a few demands as they would have to prove that they are actually committed sellers!

[Mintyy]

They could have had a higher offer originally but that sale has fallen through.

I would definitely offer oieo plus £50 or something.

It doesn't look as though the house has created as much interest as the EA/vendors hoped for!

If a bidding war does ensue (unlikely) the EA will let you know and give you the chance to increase your offer, so you have nothing to lose by offering low.

Good luck!

[MarySA]

I always think offers around are a bit meaningless. Do you offer more or less.

[wisecamel]

I've had to put an OIEO when selling my house one year ago. We were getting no interest at our original selling price and it would have got embarassing having it up online for regularly decreasing amounts of money. So, the agent suggested putting our absolute base level and OIEO. We sold (gratefully) for 10K less than the base price. So, in my experience, it means sellers are desperate, and no longer have an idea of what the house will go for. I'd sling in a cheeky offer - you have nothing to lose and might be surprised!

[BonnieBumble]

I spoke to an estate agent about this and he said it is used in two scenarios 1) when someone has a minimum amount that they can accept and cannot afford to go any lower and 2) when the property is hard to put a value on. There was a house in a desirable road that needed complete renovation, it was on at offers over £345,000 the EA said he thought they would get around £360,000 but they ended up getting £450,000 for it.

[DamselInDisgrace]

But often it's used in neither of those situations.

The second house on my list is on with two agents at £270k and then came on with another at OIEO £280k. Obviously they are willing to take less than that because it's listed for less elsewhere. It's not hard to value either. There are a lot of similar properties locally. It's just bizarre.

The other two are obviously scenario 1, but the EA should really have been more honest with them about what they could achieve. They're both tens of thousands of pounds above what very similar properties in the same location are actually selling for. It's the same EA who are notorious for over-valuing property to get business.

[wisecamel]

In our case, to be fair to the agent, he did try to tell us early on, after the no response at the beginning, that in this market, we may have to take a significant drop (it was a large 'project' house and not many people up for a project in that area!). We wouldn't listen and were determined that it wouldn't go for less than base price under any circumstances which is why we agreed to OIEO. In the end, the agent was right and if we hadn't have given in, I expect we'd still be trying to sell it now.

[MrsEricBana]

How frustrating. In that exact scenario, if you really want it, offer the new asking price and take it from there. You can always inch up if necessary.
TBH the whole buying thing confounds me - my mum moved last year after looking for 18 months near us after my dad died - whole thing was extremely stressful for her - in two cases houses came on the market that she thought would do as she couldn't face any more searching, offered the asking price on both and was turned down on both!!! I can only presume they saw £ signs as had only just gone on and unusual to get the full asking price that easily these days (she was desperate and doesn't get the whole haggling thing) - in both cases the properties were then on the market for ages.

[NK254afb31X117b2a12183]

It is a great house but needs a lot of superficial work, all over, if we pay the asking price we couldn't really do the work and that would mean living with maroon wall paper etc, if we paid less then we could use the money for that, I'm not alone, anyone buying the house would be in the same situation re changing it cause although it is very well kept it is really really dated (yes an avo bathroom!). We were there only offer and we have no chain....