Offers in excess of

[londonlostsheep]

First time buyers here and no one in real life to guide us, so all advice gratefully received!

Going to see a property tomorrow. It’s for sale at OIEO £x price . What does this mean in reality? Would it be wrong to offer below, or even the asking price?

My research suggests it may be overpriced. An almost identical property two doors down sold for £30k less very recently.

Thanks in advance.

I'd ignore OIEO and just offer what you think it's worth.

If its only recently gone on the market, sellers will be more likely to expect offers over. But the longer its been on the market, the more likely lower offers will be accepted.

We offered, and it was accepted, £440k on house advertised as OIEO £450k.

Same as previous post. We had an offer accepted on a house which was 10K below their desired price of OIEO £450K. Saying that, ours was on the market for OIEO a specific price and we were not prepared to go below this but we knew the house will generate a lot of interest. Most of our offers were higher than asking and we ignored the ones that came below. It really depends on the situation and the specific house.

Thanks both - really helpful!

Make sure you do your research very well. The house that went for £30k less may have found their dream house, had to move for work or divorce or debt so sold for a very good or reduced price. Would hate you to miss out on an ideal house. Also are there other houses around that you like as much or is this the only one? Having said all that, I would ignore the offers over (I hate this) and offer what you are happy to pay and feel it’s worth to you and then be happy to walk away if not accepted. You also have to accept that the vendors might not move at all if they don’t get a good enough offer. Try to find out their situation from the estate agent, like if they have found their onward purchase. You are in a good position as FTB. Good luck. Please update us.

Thank you so much - this is really helpful advice.

The other property was on in Sept for 625,000 and then was dropped in March to 600,000 and appears to have hold for that. The one I’m viewing is on for 635,000. The houses have both been extended - slightly differently but materially the same. The one I’m viewing has a slightly more upmarket kitchen, but the one that sold for 600,000 had a really beautiful garden.

The house backs onto farmland, do you have any advice on anything I need to think about in relation to this? Thank you!

One thing to add is that sometimes price is also dictated by personal circumstances and also by the position in an area and sometimes even the on the same street (garden views, distance from transport, distance to schools, etc.). Where we are prices have definitely gone up between Sep and now so I wouldn’t let a previous sale completely dictate your offer. As others have said offer what you think is worth it to you and go from there based on the feedback you get.

Thanks - will definitely take this advice.

The other property sold in March for 600,000. Have looked at it again and it’s actually a nicer property. A better lay out in the extension and nicer garden. It’s Sstc so need to focus on the one we are viewing today which is also lovely - but not sure it’s worth 635,000. Will report back!

Good luck, OP! It’s such an uncertain and difficult process. Let us know how it goes m

We bought our house for £5k less than the OIEO price, but it was a divorce scenario and the house has been on the market for months at that point.

Offer what you want, but it might be the case that the sellers can’t afford to/don’t want to sell for less than the OIEO price, so it depends on the property really.

The other property was on in Sept for 625,000 and then was dropped in March to 600,000 and appears to have hold for that.

Do you know the other house sold for 600k or is that a guess?

They may want or even need OIEO. But the market decides what a home is worth. And if you are the only person offering then you are the market. Offer what it is worth to you after doing full due diligence.

You're talking trivial amounts of price variation in terms of the total house price. If you ask lots of agents to value a house, they will all typically come in the range about +/-5% IME which is well within the limits of the sparse data you have here.

I would probably sound out the agent. Their response to the appropriate questions will probably tell you what sort of bid (below or above minimum) is likely to secure the place, with the caveat of course to remember that they are trying to get as much for the seller as possible.

Also factor in other things. For example is the OIEO a price change in response to lingering on the market for ages with no sale, or did it go straight on at this price.

I agree with others about ignoring the OIEO on the listing and just offer what you think it is worth (if you want to offer at all).

Bear in mind, especially as a FTB, that the market seems to be falling in many areas now, particularly at the higher end. You may be in an exceptionally good financial position or may be an average FTB who relies on their income, rather than family money. If the latter, consider this carefully when you make your offer and don't overpay or stretch to the max.
Also, if you are sure of the figure that the other property sold for, bear in mind that this date was prior to the increase in SDLT. You probably would need to pay another 10/12k or so compared to a March sale. You should factor that in too as it is a lot of money.