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Original poster

This "offers over" trend needs to stop

65 replies

itsacon · 11/04/2022 16:51

Back in the day, the seller put a house on the market and stated the price they wanted for it. Usually, you would go and view it and either offer asking price if you loved it, or you might be cheeky and go a bit under. Then the buyer would come back and they'd meet you in the middle.

These days however, the practice of "offers over" is endemic. Estate agents put an offers over price that is somewhat lower, to tempt you in. Buyers then get stuck in bidding wars, you aren't allowed to know where your bid stands in relation to others, and houses are selling for prices wildly over the OO price.

For example - offers over £350k, house is eventually sold for £390k. Offers over £600k, house is sold for £710k. (Real, recent examples from my social circle)

I'd go so far as to say it's an unethical practice.

The next problem with it is at the mortgage valuation stage. These offers are being down valued. First time buyers don't stand a chance, as they don't have the wriggle room available to cover the shortfall. The seller doesn't care as they can just go back to another buyer who was offering a crazy price. The FTB then goes back into a bidding war on the next house.

I just think house buying in England is just an awful situation.

OP posts:
hannahcolobus · 11/04/2022 17:22

This reply has been withdrawn

This has been withdrawn by MNHQ at the poster's request.

yikesanotherbooboo · 11/04/2022 17:31

I totally agree.DD is trying to buy, they have a good deposit and have spoken to mortgage people.They keep getting sucked into bidding wars .This weekend there were about 100 couples looking at the same properties that they were, all , no doubt, egged on by the EA to think they had a chance.They have made loads of offers and have been very actively looking for the best part of a year.They are sensible about not stretching themselves beyond a comfortable point but it is really demoralising for them and borderline deceitful by the EAs.

WallaceinAnderland · 11/04/2022 17:38

Offers over is an extremely effective selling strategy because people have to put in their best offer from the get go without messing around with offers and counter offers.

Just offer what you're willing to pay and if the vendor thinks you are the best option (not necessarily the highest), your offer will be accepted.

Original poster
itsacon · 11/04/2022 17:48

Just offer what you're willing to pay and if the vendor thinks you are the best option (not necessarily the highest), your offer will be accepted.

If only it were as simple as that. It truly seems to be coming down to price these days, not proceedability. We have offered on five properties recently, each one between 6-10% above the "offers over" price. Each and every time we have lost out, reasons being others offered 10-20k more, and others having a larger deposit.

The traditional first time buyer with a 10% deposit is actually seen as a liability these days. As they don't have the wriggle room to pay the difference between the offer price and the inevitable downvaluation.

OP posts:
LoopyGremlin · 11/04/2022 17:49

Offers over is standard in many parts of Scotland and always has been. Not that I agree with it, but it is what it is. I know of places that have gone for 40% over the asking price!

spuddy56 · 11/04/2022 17:51

We've been stung with two downvaluations recently and sellers refusing to budge. First time buyers who thought after years of saving we might be close to a secure home but the goalposts just keep moving.

BigBoyDunItAndRanAway · 11/04/2022 17:54

My sister looked at a house last year on for offers over £120k. It eventually sold for £250k. Her most recent viewing was o/o £150k, she offered £200k and was told she was at least £20k short. Sadly this is not unusual.

Horcruxe · 11/04/2022 17:55

I think your looking at houses that you cant afford.

You need to be looking at houses that priced 20-30k lower for their offers over price.

Original poster
itsacon · 11/04/2022 18:16

@Horcruxe

I think your looking at houses that you cant afford.

You need to be looking at houses that priced 20-30k lower for their offers over price.

If my budget is X, then I shouldn't have to consign myself to looking at houses that are 80% of X, surely?

It's absolutely ridiculous.

OP posts:
Mannydelgado · 11/04/2022 18:17

I don't mind. At least I know what the minimum is that the vendors will accept

TizerorFizz · 11/04/2022 18:37

@itsacon
Obviously you should. The selling price is what matters. Not a fictional asking price. If the final deals are 20% over your max, look for 20% under your max. It’s obvious really!

Bedsheets4knickers · 11/04/2022 18:40

I agree completely, good news though . Everything's being reduced round by me so let's hope things are settling down.

WallaceinAnderland · 11/04/2022 18:47

If my budget is X, then I shouldn't have to consign myself to looking at houses that are 80% of X, surely?

It's absolutely ridiculous.

No, you definitely should be looking at 80% of X so that you do have room to negotiate/increase your offer.

If properties are selling for 20% more, it's because they are worth 20% more to those people who bought them. Just because you can't afford them, doesn't mean they aren't worth that amount.

Kabalagala · 11/04/2022 18:53

Unfortunately that is what you have to do. Everything is going at least 10% over asking. It's ridiculous and unethical, but the way it is at the moment

JudgeRindersMinder · 11/04/2022 18:56

It’s how it’s always been in Scotland and it works.

A house is generally only mortgageable to the home report (survey) valuation, and if you want to offer more than that, then it’s your own cash, not mortgage.

There’s a lot more needing sorted out in the English house buying system before o/o can be criticised!

VioletVesper · 11/04/2022 19:04

@spuddy56

We've been stung with two downvaluations recently and sellers refusing to budge. First time buyers who thought after years of saving we might be close to a secure home but the goalposts just keep moving.
We are in exactly the same situation. It’s really demoralising and we feel a bit like our life is on hold. I keep thinking we will pause for a bit and see what the market is like in a few months time but I can’t seem to stop looking! Wishing you lots of luck with your search.
GreenLunchBox · 11/04/2022 19:06

The traditional first time buyer with a 10% deposit is actually seen as a liability these days. As they don't have the wriggle room to pay the difference between the offer price and the inevitable downvaluation.

I see FTB as a liability because they tend to be skittish and naive, not because of this reason you have stated.

There’s a lot more needing sorted out in the English house buying system before o/o can be criticised!
Absolutely! It wouldn't be the hill I die on when there is so about the process that needs overhauling

JudyGemstone · 11/04/2022 19:09

I didn’t put forward the highest offer, but was in a good position to proceed so ‘won’ the OEIO bidding war. The agent actually called me and asked me to raise from £273k to £275k and I refused - still got it though.

I got outbid on a couple before i got this place that went for a ridiculous amount which they patently weren’t worth. This was 4 years ago too, so prior to the pandemic related craziness.

Be patient and don’t get caught up in the panicky offers, try and leave emotions and ‘dream home’ notions to one side, it’s just a business transaction at the end of the day. You will get something eventually.

Ahbisto · 11/04/2022 19:15

Are you in Scotland? This has been the practice fhere forever. And yes I’m sorry you’re looking at houses out with your budget.

If you’re in England then it’s really not so common so I’m surprised you’re bidding constantly on offers only houses. But if you keep loosing out then you need to look at lower cost houses.

froidIci · 11/04/2022 19:15

If your budget/maximum amount you can pay = X,

Then you want house which will SELL for X - not houses which will be advertised for X.

So - you surely need to be looking at houses advertised at X minus 20% because those are the houses which will sell for X?

Mosaic123 · 11/04/2022 19:15

My DC worked out that he had to look at property way below his top price in order to be able to secure a property.

This has worked (as long as it goes through).

It's not ridiculous. It's just the way things are done now.

froidIci · 11/04/2022 19:16

I mean the alternative is to just miss out and moan. One person (you) won’t unfortunately cure the UK housing market at either policy level or practice level so I don’t see what your options are here really except to only view houses advertised at X (your maximum budget) minus 20%.

Ahbisto · 11/04/2022 19:16

@Kabalagala

Unfortunately that is what you have to do. Everything is going at least 10% over asking. It's ridiculous and unethical, but the way it is at the moment
Why’s it unethical? They don’t have to sell it to you if someone else will pay more. There is nothing unethical about it. It’s not first to offer is entitled.
Roselilly36 · 11/04/2022 19:17

It’s still a sellers market, until that changes, offers over will continue. Whether mortgage companies will back it up with valuations, remains to be seen.

Fritilleries · 11/04/2022 19:17

@Mosaic123

My DC worked out that he had to look at property way below his top price in order to be able to secure a property.

This has worked (as long as it goes through).

It's not ridiculous. It's just the way things are done now.

Utterly depressing. Been completely shut out of the property market. Decent 3 bed semis are now 350k in the north west.