"offers in excess of..." what do they actually want??

[rumbelina]

Say if a property is marketed as "OIEO £165000" how much over are they expecting? £170? £175? Is there a general thing like you need to be 5% over?

Does anyone reading this have any experience of this?

It means that they want at the very least, the asking price, as opposed to having £5k/£10k knocked off IMO - I work in the lettings side of an EA and I have heard the EAs say this

I think it means they are hoping to start a bidding war

I think it's cheeky and had never seen it before I moved to the UK.

Really depends on the local market Your solicitor if you have a good local one should be able to help you with that In Scotland where I am you would look at the Home report value as a guide more than the asking price

I would just put in whatever you want... Not necessarily in excess of. See what the local market is like. Eg. Round here, where the market is very bouyant, and there is a shortage of houses, a house was on the market for OIEO £350k. It then dropped in price to OIEO £340k.. And then down and down and I recently saw it has Sold STC on rightmove on and the asking price was £310k... Offer what you like!

You can still offer exactly what you want though. The house we live in now is 'offers in excess of', we offered £25,000 under and got it. Its all about what people are prepared to pay.

I agree - I think they want a bidding war....it is cheeky. But I also take the point that they're not prepared to take less than the stated price. It's a bit of a sellers' market where we are looking, unfortunately. The last house we saw we were prepared to offer the asking price but a bidding war ensued and we ended up offering £5k over but I think it went for about £10k over. I think it oughtn't be allowed as it bumps up house prices. We did it though, as we wanted the house.

Anyway it's been on 3 weeks and no offers yet so we'll see....they might want a quick sale. On face value, and where it is, it is worth the stated price, we just can't go over by very much and I wondered if there was a norm....thanks for all the replies.

I read it as they will not negotiate down at all.

It means they are trying to set a minimum price, but we paid £30k under the "offers over" price for our house. just depends how much the vendor needs to sell, same as any house. Offer what you're prepared to pay, but I wouldn't ever offer "over" the price as a starting bid (i.e offer under or exactly on that price).

A property is only worth what someone is willing to pay for it. In some cases the 'offers over' may encourage a bidding war if it is a very desirable house, or it may indicate that that is the floor price for the vendor (or the one they are hoping for anyway ) . I would offer what you think the house is worth, based on other local comparables and if you can work out what the cost per sq m/ft is then you can compare what the asking price is to what sold prices are in the area and see whether what they are asking is reasonable.

We sold as oieo.
We needed x to buy the house we wanted. Any less and we didn't want to move at all.
We got x plus a little bit.

It's a buyers market now, so feel free to offer under. The most they can say is no. I looked at a house that was OIEO for £950k and when it didn't sell, they changed to OIEO £850k. Still not sold. The original OIEO was pure wishful thinking, and it almost certainly will sell under £850k.

Round here it's a sellers market - houses going for more than the asking price all over the shop.

However I spoke to the EA and he said basically the sellers want on or around the given price and would probably accept a bit under. Don't know if he should have told me that but it's good to know!

Wow Apatite, that is a HUUUUGE reduction, although I guess in relative terms its only around 10%

I used to work as an EA. Basically it means that the client wants X amount but the EA is not sure what they might actually get - could be more. The Price on Application ones often mean that the client wants more than the agent thinks is feasible or they are trying to test the waters.

Here's my current favourite price reduction (not looking in this area, but stumbled across it online)

www.zoopla.co.uk/for-sale/details/31969667#mMPGhme5pmugsz2X.97

A mere £395k reduction. And still massively overpriced at a touch under £2m. For a 3 bed flat. Riiiiiiiigght.

That flat was bought for £600k in 2011. And they now think people will want to pay £2.4 million for it 3 years later. What were they smoking?

Bloody hell!

Im in scotland and offers over is very much the norm. However when I sold I accepted the asking price, get the feeling the buyer would have increased their offer had we refused it but didnt dare find out (long story!) When I bought I offered 5k over the asking price but that was at the very peak of the market (literally,it crashed 3 days after I made my first mortgage payment).

We sold our house with OIEO.
I prefer it TBH, it lays all the cards out on the table.
For me it means 'the lowest we are prepared to accept is x, don't bother offering below that'.

Our house was on at OIEO £100k and sold for exactly that.