Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Lauralou79
    • By Lauralou79 13th Mar 17, 8:38 PM
    • 62Posts
    • 27Thanks
    Lauralou79
    Offers in excess
    • #1
    • 13th Mar 17, 8:38 PM
    Offers in excess 13th Mar 17 at 8:38 PM
    I know there is no real answer to this, but does anyone have experience of this when viewing a house? And how much or percentage over did they end up paying?
Page 1
    • ACG
    • By ACG 13th Mar 17, 8:42 PM
    • 14,895 Posts
    • 7,497 Thanks
    ACG
    • #2
    • 13th Mar 17, 8:42 PM
    • #2
    • 13th Mar 17, 8:42 PM
    Mine was up for sale as offers over.
    Someone offered me the asking price, someone else offered me £5k below - although to be fair the person that did that, you could tell was the type who would have offered £5k below no matter what the price was.
    • sulphate
    • By sulphate 13th Mar 17, 8:47 PM
    • 1,036 Posts
    • 3,037 Thanks
    sulphate
    • #3
    • 13th Mar 17, 8:47 PM
    • #3
    • 13th Mar 17, 8:47 PM
    I'm not a fan of OIEO and both estate agents who gave us valuations recently said they were quite an old fashioned way of marketing a property now. I think there is a tendency of getting into bidding wars.

    When we were hunting 4 years ago as first time buyers, we offered 5k over the OIEO price but someone else offered more. As with any other house, what the vendor will accept is dependent on if they want a quick sale, or whether they are prepared to hold out for the best price.
    • Lauralou79
    • By Lauralou79 13th Mar 17, 8:52 PM
    • 62 Posts
    • 27 Thanks
    Lauralou79
    • #4
    • 13th Mar 17, 8:52 PM
    • #4
    • 13th Mar 17, 8:52 PM
    Yeah I don't wont to be in a bidding war and houses in the area are going quickly too. Not sure how much more vendors want when it's priced like this. I guess it's very individual.
    • Mrs36
    • By Mrs36 13th Mar 17, 9:14 PM
    • 125 Posts
    • 203 Thanks
    Mrs36
    • #5
    • 13th Mar 17, 9:14 PM
    • #5
    • 13th Mar 17, 9:14 PM
    Someone offered me the asking price, someone else offered me £5k below - although to be fair the person that did that, you could tell was the type who would have offered £5k below no matter what the price was.
    Originally posted by ACG
    Just out of interest, what type is that?

    I have a thing about never paying asking price (which has worked so far) but I cannot bear faffy offers over/guide price/offers in excess of. I wish people were just up front about the price they want, it would save an awful lot of messing around.

    Are you a buyer or a seller? I am assuming the former so I would offer what the house is worth to you. How long has it been on the market for?
    • glasgowdan
    • By glasgowdan 13th Mar 17, 9:21 PM
    • 2,194 Posts
    • 2,439 Thanks
    glasgowdan
    • #6
    • 13th Mar 17, 9:21 PM
    • #6
    • 13th Mar 17, 9:21 PM
    If houses are selling quick then offers over gets the best price for the seller. The seller doesn't quite know what that best price is so leaves it to the buyers to bid their best prices.

    This doesn't get anyone a bargain purchase, but areas that people want to live in never go cheap.

    In my area the standard practice is to mark the house as offers over a price roughly 10% below the home report value of the house. Offers tend to go over this home report value by 0-5%, so up to 15% above the offers over price.
    • ACG
    • By ACG 13th Mar 17, 9:23 PM
    • 14,895 Posts
    • 7,497 Thanks
    ACG
    • #7
    • 13th Mar 17, 9:23 PM
    • #7
    • 13th Mar 17, 9:23 PM
    He was the type to walk around with arms folded, looking for any sign of anything that he could use to get the price down and making that noise dodgy mechanics make. His offer was £5k below the asking price subject to survey...so it was pretty clear he was going to get his mate to do a survey (in addition to the mortgage val) and then use that to get the price down. When someone else was more than happy to offer the asking price with no caveats. It was up for a fair price, im not greedy.

    Im not bothered if people offer below the asking price, its the amateur dramatics that come with it. You either want the house or you dont. Doing all this deep breathing in and all the rest of it just makes me think I am not going to sell to you out of principle even if your offer was the most as I have lost all confidence you will not reduce the price at the last minute.
    • Lauralou79
    • By Lauralou79 13th Mar 17, 9:24 PM
    • 62 Posts
    • 27 Thanks
    Lauralou79
    • #8
    • 13th Mar 17, 9:24 PM
    • #8
    • 13th Mar 17, 9:24 PM
    I'm a potential buyer. The house has had several viewings in the week it's been up (and some second viewings) property in our price range in this area is moving fast though. Just trying to figure out if vendors expect a little more or thousands more, but I guess there's no real answer to that!
    • Mrs36
    • By Mrs36 13th Mar 17, 9:25 PM
    • 125 Posts
    • 203 Thanks
    Mrs36
    • #9
    • 13th Mar 17, 9:25 PM
    • #9
    • 13th Mar 17, 9:25 PM
    Oh, I know the type ACG and I see what you mean. I am not one of those, and I wouldn't be looking at anything that would go for asking price anyway (I like a project!)

    O/P have the EAs given you any idea what figure the vendors are looking for?
    • Lauralou79
    • By Lauralou79 13th Mar 17, 9:31 PM
    • 62 Posts
    • 27 Thanks
    Lauralou79
    Not yet. Going to do some enquiring with them tomorrow. We have a price in mind that we would go up to, but I'm not getting into a war.
    It needs modernising a little and it's priced above the last house that sold in the road. So feel it wouldn't be worth much more than what we could offer. However because property is so popular nearby I do think someone will come in and offer over the odds.
    • Miss Samantha
    • By Miss Samantha 13th Mar 17, 9:40 PM
    • 1,177 Posts
    • 1,122 Thanks
    Miss Samantha
    Just out of interest, what type is that?
    Originally posted by Mrs36
    Smart, who does not fall for the sale pitch.
    • juniordoc
    • By juniordoc 13th Mar 17, 9:41 PM
    • 103 Posts
    • 62 Thanks
    juniordoc
    If someone else does offer over the odds then they will only end up coming back down when the survey comes in, or when they can'tagree the mortgage as the valuation doesn't match their offer.
    Offer what it is worth to you.£500 over asking price is still over! And for many "offers over" is a hope rather than an instructor.
    • Rambosmum
    • By Rambosmum 13th Mar 17, 9:55 PM
    • 1,288 Posts
    • 1,734 Thanks
    Rambosmum
    We've offered on 3 offers over properties. The first was offers over £300k, we offered £305, £320 and £325 - all were rejected and we were told the seller wanted £330, which was above what we thought the house was worth - that was 5 months ago and he house still hasn't sold.

    2nd OIEO £280 - Offered £296, got accepted but then we were gazumped.

    3rd OIEO £325 - Offered £333, got it.

    But where we are houses are going for over asking anyway - we offered 27k over asking (about 9%) and 15k on another (about 5%) and got neither - both went for much more, though I don't know what.

    Depends on your market. Here, houses are fetching stupid amounts.
    • ReadingTim
    • By ReadingTim 14th Mar 17, 1:06 PM
    • 1,583 Posts
    • 2,251 Thanks
    ReadingTim
    Depends on how realistic the price one is expected to offer in excess of: sometimes it's low because it's difficult to put an accurate price on the property, or in the hope of sparking a bidding war between people initially seduced by a 'bargain'.

    Unfortunately it can also be a wildly optimistic figure "needed" to bail the vendors out of negative equity or fund an onward purchase that they can't otherwise really afford.

    If you want to post a link, people will give their opinions as to whether the place you're interested in falls into the former, or latter category. Otherwise, you're basically asking how long is a piece of string...
    • hazyjo
    • By hazyjo 14th Mar 17, 1:28 PM
    • 9,084 Posts
    • 11,365 Thanks
    hazyjo
    Our EA wanted us to do OIEO but I said buyers hate it, and I don't like it either.


    I am currently watching a couple of houses with OIEO prices, but they've been on the market for weeks/months. I expect they'll take off the OIEO bit soon - in which case I might be interested as would need to offer under.


    All depends how long things have been on the market and how realistically priced they are. Sellers are indeed often deluded (no offence to anyone - I may even be one of them lol!).


    Jx
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; books; film Premiere; Broadchurch DVDs; lipbalms
    • Hoploz
    • By Hoploz 14th Mar 17, 1:31 PM
    • 3,531 Posts
    • 3,117 Thanks
    Hoploz
    If you can't find alternatives easily then all you can do is offer what you can afford. If you feel you've gone too high afterwards then the mortgage valuation might come in lower, enabling you to renegotiate.

    Although nobody wants to pay more than necessary, you have to weigh up the extra few £k now against waiting and waiting to find something else better and cheaper. If there's plenty available that's no problem. But if you're still going to be hanging in there waiting for a bargain a year down the line, you'll more than likely end up having to settle for a less good property as you find the market has risen 5% or 10%. I've seen it happen.

    I've also been in the 'best & finals' scenario 3 times. Twice in 2007 we offered what the house was 'worth'
    Third time (2014) we offered more, as we had seen the two we failed to get sell for 100k (30%) more a year or two later. We knew we wouldn't find anything as good for a long time so we considered it to be worthwhile going over. We got it, but we were told 2 other offers were very similar. So you could say that was indeed the market value.
    • clint_S
    • By clint_S 14th Mar 17, 2:00 PM
    • 357 Posts
    • 553 Thanks
    clint_S
    I hate Offers Over. Its just seems so pretentious, to the extent that I'll often have a negative opinion of the house before I start looking at it. I'll actually be more critical just because of the Offers over tag and I'll also have a negative opinion of the seller due to this as well.


    The funny thing is that they aren't any cheaper than similar houses if anything they seem to be priced slightly higher.


    • KateySW
    • By KateySW 14th Mar 17, 2:13 PM
    • 58 Posts
    • 62 Thanks
    KateySW
    Since we've been house hunting, we've had two experiences of bidding on houses that were OIEO. In the first instance, it escalated into a bidding war - we bid £15,000 over the OIEO price but didn't win in the end.

    Second time round, we were the only bidders and offered £5000 over the OIEO price, which we thought was fair considering the amount of work needed on the house. We were then told that the seller would not except anything less than £20,000 over the OIEO price, which we thought was a bit bonkers!

    I'm not sure if that's the norm, I live in Bristol so the housing market here can be a bit brutal. But we were pretty cheesed off by the whole experience really and since then, went for a property that just had an asking price.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

156Posts Today

1,223Users online

Martin's Twitter