Offers In Excess Of....

GracieP

Incisor wrote: »

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

But there is, a vendor can always just say fixed price. The thing with vendors is, is that they are just individuals. And every individual has a right to hope for the highest price possible when it comes to their sale. Just like every buyer has the right to hope for the lowest price.

If a vendor prices low enough to generate interest from more than one party who will bid against each other then good for them. The potential buyers have every right to walk away, it isn't like there is a shortage of housing. But if a vendor can find a buyer who likes the property enough to haggle (it's extremely rare, but it still happens) then who are we to criticise them?

Incisor

GracieP wrote: »

But there is, a vendor can always just say fixed price. The thing with vendors is, is that they are just individuals. And every individual has a right to hope for the highest price possible when it comes to their sale. Just like every buyer has the right to hope for the lowest price.

Have you just undone your own point? If vendor says fixed price when they mean "OIEO [I'll take the first to breach my price]", they will ahve screwed themselves out of more if a buyer wanted to be really sure of getting the place?

Nenen

Well, I'm actively looking to buy so from my pov I can tell you OIEO does put me off when it is around the same price of comparable houses without this wording. If it is (IMHO) significantly lower than comparable houses then I would think about viewing. I don't really think you can assume that all vendors who have their homes advertised at OIEO are going to be 'difficult'... as I said in an earlier post some EAs (Haart in my area) do this as standard practice on many of their adverts and I would guess it is their suggestion to vendors to go with that wording. Many vendors will be selling for the first time in many years and might not even think about the implications of that language, just go with the EA's advice to use it.

On the subject of whether OIEO means 'first to offer over that threshold' or 'highest offer over that threshold' the first option is fair enough (although purely psychologically personally I think it would be better to go the traditional route and let the buyer feel s/he has a bargain with some money off. I don't have a problem with the second option, providing it is done within a known set period of time following an 'open house' as Alfie did and, once the highest offer is accepted, there is no intention to allow further viewings and/or guzumping.

RichOneday_2

I'm not quite clear why the advertised price makes a jot of difference whether its OIRO or OIEO or anything else. Its nothing more than a guide price, similar to an auctioneer's guide price.

In an auction a property might go for way below or way above the guide price, it doesn't really affect the bidders at all.

Surely people put more effort in to deciding how much they are willing to pay for a property than making an offer relative to the asking price of the vendor.

Incisor

RichOneday wrote: »

I'm not quite clear why the advertised price makes a jot of difference whether its OIRO or OIEO or anything else. Its nothing more than a guide price, similar to an auctioneer's guide price.

In an auction a property might go for way below or way above the guide price, it doesn't really affect the bidders at all.

Surely people put more effort in to deciding how much they are willing to pay for a property than making an offer relative to the asking price of the vendor.

Absolutely. I have no problem with looking at OEIO and offering below if I want it, but not for the OIEO price. And as I remarked before, if the vendor gives me a hissy fit, I shall post here for everyone to have a laugh

currynchips

RichOneday wrote: »

I'm not quite clear why the advertised price makes a jot of difference whether its OIRO or OIEO or anything else. Its nothing more than a guide price, similar to an auctioneer's guide price.

For me, this is because I don't instinctively know what a house is worth by walking in and looking around. I can compare with other houses on the street, but I've no idea how much new windows, bathroom fittings, central heating will cost to install, nor what value a downstairs bathroom or an ensuite adds. I'll probably be making an offer before the solicitors go in....is this the wrong way around?

RichOneday_2

The first port of call should be to check the Land Registry prices for the last 3 months. Knowing what each type of property has actually changed hands for in your postcode area is a hell of a lot more useful than the fantasy land of asking prices.

Go and have a quick look at the ones that have changed hands recently and do a rough 'compare and contrast' with the one you're considering buying.

As for the costs of improvements to bring a property up to scratch its not too difficult to get good ball park figure with the vast array of info available on t'net.

GracieP

Incisor wrote: »

Have you just undone your own point? If vendor says fixed price when they mean "OIEO [I'll take the first to breach my price]", they will ahve screwed themselves out of more if a buyer wanted to be really sure of getting the place?

No I haven't. If they would be happy to take £1 over they might as well state fixed price. If it says OIEO they obviously want the highest offer possible. It's pretty bloody obvious that anyone asking for OIEO wants the highest possible price (because realistically speaking, who wouldn't) and will only accept £1 over if that is the only offer they get.