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 got my home for £5k less than oieo. I'm not remotely interested in whether I came across as a cf.

From my extensive research (I have almost grown a third arm just for Rightmove), new builds tend to cost about 10% more than older homes and out of warranty new builds, and I personally never want to pay that much more because the rooms are often boxy.

So it's gonna take a while to achieve higher than the paid price.

And yeah I would absolutely ignore any guide prices or offer overs in this market, and even more so if I thought a house was in an area that's likely to get hit hard by house price stagnations or falls over the next two years.

Your buyers sound sensible, sorry to say.

Thank you! I didn't know that. I knew there was a guarantee of sorts but wasn't aware it was that long - actually makes me more likely to consider a newer property in the future.

Oh you’re absolutely right - massively kicking ourselves now but like many others in hindsight we actually couldn’t afford a place and got lured in by help to buy!! We’ve known for a while we wouldn’t make any money on it but hoping to get as close to what we paid as possible. In the development the majority seem to have at least gotten what they paid so fingers crossed for us, but awful time to sell anything let alone a second hand new build!! I also have a third arm for Rightmove 😂

I wouldn't. Tbh I hate vague pricing like that though and preferred to look at fixed price places when house hunting.

We’re buying for £5k under an OIEO price.

Also to be aware of is banks not lending as much vs salary as they were and interest rated much much higher than when you bought. OIEO is just your aspirational objective.

We did and they accepted it 10k below OIEO price x

House builders guarantees are written in water. If you buy new you need a real inspection before making the final payment.

My current house was on for OIEO £190k, I offered £180k, which was rejected, but they accepted £185k. If you don't ask, you don't get....

But that isn't the potential buyers issue. They offer what they want to pay, you say no, end of it.

If no one is willing to pay your price then you can't move.

Yes I would. I see the price as aspirational guidance. I offer what it's worth to me and they can say no. In fact, I viewed one last week and thought it was expensive. When I fed that back to the agent they encouraged me to offer what I thought it was worth. I didn't in the end but I think it shows that EAs encourage lower offers rather than no offers as it might prompt the vendor to reduce. I think you'd be very lucky to get what you paid for it. If you used Help to Buy you paid top whack and prices are falling. Buyers can get a good deal on an actual new build right now.

Hell yeah I’d offer under! I look at OIEO as a sign of desperation. I’ve been there myself when selling. No one offered on a flat the estate agents had massively overvalued so I reduced it a few times then went OIEO. It didn’t work! Buyers don’t like OIEO or ignore it. They’ll offer what they want and if like me they see the OIEO a bit like inviting a lower offer or even as arrogant or rude as you’re trying to tell buyers what to pay. My current home was OIEO £1.4M. I offered 1.35 and we met in the middle.
If you need more than your offers then maybe you need to stay put. Or change your expectations. I feel you’re unprepared for the next step of buying if you’re naive enough to not offer below OIEO. It’s a buyers market!
prices are falling! Whatever is the lowest you think you’d dare offer on your next house, take that figure, minus 10%, take off a further £5000 then start with that.
Oh, and if the buyer who offered 5k under looks a reliable buyer who’s not in a chain stop posting on here and snap his hands off. It’s a good offer!

Same

Also if the best you can get now is £5000 under, I wouldn’t mind betting it will be a lot less in a month or two when interest rates are even higher. Don’t let the market leave you behind as it falls quicker than you’ll accept. Out of interest how much is the house up for? If it’s £500,000 for example then 5k under is 99% of asking price which is phenomenal in the current market. Take it!

So you rejected an offer £5001 lower than your asking in this rapidly falling market? Chances are that your next purchase will also be discounted by the same rate anyway, seems that it’s driven by ego rather than rational. And to your question, people offer what they thing it’s worth, especially at the moment where asking price are often grossly overinflated.

In 2011 I went to view my flat that I purchased, it was a repo, they wanted £240k I got it for £170k, market will dictate what happens. If you can sell and not be in negative equity it isn't terrible the house you buy will have to reduce their price too then.l, which means less stamp duty too.

The buyer isn't there to fund your life though, they are there to offer what they think the house is worth.