Offers In Excess Of....

Running_Horse

The one that gets me laughing is "fixed price".

OIEO could work if the market started to rise again, but would annoy me as a potential buyer, as I don't like being pressured.

Alfie1999

Running_Horse wrote: »

The one that gets me laughing is "fixed price".

OIEO could work if the market started to rise again, but would annoy me as a potential buyer, as I don't like being pressured.

If the fixed price is low enough then it's legit.

Similarly, if the oieo figure is low and the seller is immediately clear about his 'wanted' price then it's also legit imo.

In this market you've got to try all sorts rather than just sitting around whinging that you haven't had a viewer for months but still refusing to cut the price in any meaningful way.

currynchips

ad44downey wrote: »

OIEO = vendor chancing their arm.

Ignore it completely and in the current market you should offer well below it.

Thanks. I'm now glad that our offer has fallen through. Although we have to rent and throw away dead money, I feel more confident about the next offer we make. Anywhere we see will be at least 10% under, regardless. We wil be renting and in no great need for a house of our own.
Excuse my confidence but, bring it on!!!

Nenen

I suppose it might work for some people when the market is booming or if the OIEO price is WAY under the prices being asked for comparable properties. However, I think most buyers are put off by this tactic. We all like to feel we've got a bargain and in the current market I think this is commonly felt to be when 10+% has been negotiated off asking price.

Some EAs are very keen on OIEO... in our area Haarts are notorious for this and I don't think this has altered with the changing market. They market houses at similar (or higher) prices to comparables and stick OIEO on for good measure! It makes me LOL when I see houses like these sticking for ages and eventually reducing to below the original OIEO price. I feel sorry for the sellers who might well have sold if only they'd been open to sensible offers in the first place!

http://www.rightmove.co.uk/viewdetails-21182900.rsp?pa_n=20&tr_t=buy

http://www.rightmove.co.uk/viewdetails-10174155.rsp?pa_n=31&tr_t=buy

http://www.rightmove.co.uk/viewdetails-21505094.rsp?pa_n=32&tr_t=buy

lethal0r

its a little like the 99p psychology thing - it makes it sound cheaper.

Ulfar

As has been expressed by others, when I see OIEO I no longer consider the property even if it is lower than comparables.

To me it implies the sale will be a nightmare with the vendor behaving as if they are doing you a favour by allowing you to buy their house.


Normally you see it when the OIEO price is at the smae or higher than equivalent properties.

dubsey

As I have said many times I wouldn't look at a property that was OIEO. I think Ulfar is spot on, I would consider the vendors to be a nightmare when it came to the actual sale. Funnily enough on a couple of properties we saw on the internet that had OIEO, DH said why don't we just offer £1 more then!

We bought this house two and a half years ago, offer accepted and then three weeks later they came back asking if we would increase so they could buy the house they wanted (we had offered way below the asking price). We stuck our ground and said no and after a week they agreed to continue at the original price. When you do find a property don't be afraid of going in low, you'll only kick yourself if they snatch your hand off at the first offer and be prepared to walk away, don't let your heart take over.

GracieP

How many people saying they wouldn't look at properties with OIEO are actually looking to buy right now? It's all very well saying you wouldn't look at properties priced that way, but if you aren't actively looking and planning to buy at the moment then your opinion doesn't really count. I wouldn't look at any properties priced that way, but I have no intention of buying at the moment because the "bargain" I could buy now will seem bloody expensive a year from now.

However people who for whatever reason are looking to buy now would be pretty silly to ignore a house priced significantly lower than all other competitors just because the vendor is hoping to generate interest and get the best price they can.

Alfie1999

The reaction to oieo hre strikes as similar to attitudes on hpc towards it.

When I did it I priced the oieo at up to 20% less than asking prices of similar properties in the area.

I put the house on a open day and had a stampede at that price with some buyers understandably hoping to get the house for £199,950 rather than the £235-250 others were asking.

Getting viewings is extremely difficult at the moment so it's vital to use any method to get people in to your home to view and hopefully want to make an offer.

The buyers are getting a nice 4 dbl bd townhouse in Hampshire for £212,500 so they've got a good deal imo.

Incisor

My second take on this is that there are 2 ways to interpret OIEO:

1. First offer to breach the OIEO value gets it.
2. Highest offer over the OEIO value gets it

I have no real problem with the first way of doing it, I would happily offer £1 over and not negotiate, and if the vendor did mean first offer to breach OIEO, then I doubt they would misbehave after that. But if the vendor intends the second meaning of OEIO, I agree, they could be a right pain, because their way of pricing means that they might never be fully satisfied and always looking either to gazump or go with another offer.

What is needed is some different terminology to distinguish between the 2 approaches.