Would you offer under an OIEO price?

[HolidayHun2020]

We are currently selling a new build and we’ve so far had three offers which are under the OIEO price one was £5k under and one £15k under and another £20k under. I’m just flabbergasted as I would never offer under an OIEO - I just don’t see the point. The lowest offer would be £26k under what we paid for the property five years ago so I don’t believe it’s overpriced.

Do people generally go in under OIEO or are people just trying their luck in the current market?

I would largely ignore OIEO and just focus on the number. If they've all come in under it's possible it is over priced. Do you have any comparable sold prices?

Yes I would

Most people just ignore OIEO. People can offer what they like and actually the fact they have is useful information for you.

We did and it wasn't accepted, they needed the number to make their move work.

No harm in offering though.

The fact they are all under is telling though.

If it was new when you bought it it's almost certainly gone down in value.

And yes, of course offering under is fine. It's an offer. It represents what a potential buyer thinks it's worth. It's not a character assassination or public flogging.

Thanks for the responses!! Good to know from a buying perspective I guess as in theory we will (hopefully) be soon 😂

@fireflyloo so the only comparable we have sold last summer for £7k in excess of what it’s on for but understand the market is completely different now!

I sold the house I'd owned for 12 years for £15,000 less than I'd bought it for. House prices don't always go up ...

@cocksstrideintheevening We are the same, basically can’t move unless we get almost what we paid for it!

@titchy I don’t think a low offer says anything about my character or even the property - even from those who haven’t made an offer we’ve had some lovely feedback! It’s just not something I as a buyer would’ve considered doing for fear of looking like a CF BUT this thread is opening my eyes that it’s not uncommon!

I'd only offer what I was willing to pay, regardless of what the seller was asking for.

Just because it’s under what you paid doesn’t mean the offer is wrong. New-builds are well known for depreciating and there are all sorts of other reasons why a house might be worth less.

@sanityisamyth Oh I understand a new build is basically like a new car BUT the only way we can move is to get back close to what we’ve put in unfortunately for us!

I’m not questioning necessarily that the offers are wrong just whether it’s the norm to go under an OIEO price, it’s not something I would do when offering - I wouldn’t bother looking for a property that’s on for OIEO £600k if my budget is £550k. I mean I believe they are low for a variety of reasons but that wasn’t the point of the thread.

I’m theory though, if your budget was £550k would you still go and view a property that’s ok for OIEO £580k and offer? It’s not something I would do but and I didn’t think other people did either but as a buyer it’s good for thought! Even though I’m complaining about people doing it to us 😂

If it's a "£x or we don't move" situation I'd have a chat with your agent about vetting and briefing viewers more clearly, to save yourself and them from pointless viewings.

If you reject the £5k under offer and say you wont sell for less than asking they might well be willing to pay it.

People on here always tell buyers to offer 10% under asking which I find bizarre, but if they viewed the house and want it they're probably chancing it.

@HolidayHun2020 yeah I probably would still view it and make a cheeky offer if I could afford to.

We had two buyers go straight in over asking on our house we sold which I thought was barmy

I wouldn't pay what you paid for a new build, its like a car.

Unless you have done improvements i would always offer under what you paid for your new build if its less than 5 years old

My house is sold was built in 1890. Bought it at the top of the market in 2006 and it never recovered in value.

We offered under and it was accepted . We were in a good position though which I think made the difference .

We got ours for 7k under Oieo. We offered what we thought it was worth. Same with any housing transaction regardless of any fancy price suggestions.

Honestly, I wouldn’t make much distinction between OIEO, OIRO and a straight asking price - I would put in a bid at or below the number listed.

Presumably the rightmove range selector works on the number? So if my budget is £400k I might put in “375-425” as my range for a search and just assume I could get something knocked off anything at the top end.

I would check how long it’s been on the market. If I needed to get it for under the OIEO then I wouldn’t hold out much hope of my offer being accepted in the first couple of weeks.

If you bought it five years ago, how is it a new build?

New builds are normally under warranty for 10 years - so it's still a new property.