Offers in excess...?

VKay

Well the market seems to be positively buoyant in the town in Devon where we are house hunting!

Tonight we are viewing a property that looks pretty good on paper- we are the first of 4 viewings in a row this evening.

The price for small 2 bed end terrace is offers in excess of £129950. I anticipate (as usual round here) there may be several of us making offers- I'm not prepared to beat the price up and will duck out of any situation like this as I have done in the past. i haven't been in a house yet that I've thought it's worth paying a premium for.

What I wonder is, what does offers in excess REALLY mean? They can't dictate that we offer over, so what's the point?

Thanks!

Euphoria1z

it kinda means they wont consider £129950 and below, but only above. so theyve marketed it at the minimum price they need. so they want more than this amount. you can still offer below what there asking but others may offer more than this. It really comes down to how much your willing to pay for it. Several different wordings when estate agents advertise, i.e offers in excess, offers around, fixed price, offers over (same as offers in excess of... (never seen offers under!))

VKay

Thanks for that.

Feels like there's no 'price crash' round here!

chickmug

VKay

Glad you posted as it does show me something I have said on other threads. There really are areas where you will NOT get your offer of 20% less accepted.

I never liked the 'offers in excess of' unless the market was good and I knew there would be multiple offers as it DID get the best price for the seller.

It doesn't mean you have to offer over as I dealt with those properties that despite this jargon being used lower offers were sometimes accepted.

South Devon is a great place and I will be moving there soon'ish.

flea72

honestly its a marketing ploy to get more people through the door

If they put it on the market for the price they really want (im thinking nearer £150k), alot of people would not even bother to view as it would be way above their price range. But put it up for offers in excess of £129950, and you will get people through the door who have a budget anywhere from £100k - £150k

Flea

chickmug

flea72 wrote: »

honestly its a marketing ploy to get more people through the door

If they put it on the market for the price they really want (im thinking nearer £150k), alot of people would not even bother to view as it would be way above their price range. But put it up for offers in excess of £129950, and you will get people through the door who have a budget anywhere from £100k - £150k

Flea

Not saying it doesn't happen but not one I have heard of?

If they want a net £150,000 it seems very risky to say offers over £129,950. Any agent advising a seller to do this would not be giving their best advice IMO.

flea72

chickmug wrote: »

Not saying it doesn't happen but not one I have heard of?

If they want a net £150,000 it seems very risky to say offers over £129,950. Any agent advising a seller to do this would not be giving their best advice IMO.

Im not saying they are going to get £150k, im saying they dont want £129950, and would expect offers to be at least £10k more. This type of marketing increases the liklihood of bidding wars, just due to the way the pricing is presented, its quite similar to sealed bids

Given the choice if you had a budget of £140k, you are more likely to view houses that are priced under this, than over. Due to the fact you dont want to view a £150k house, and have your dreams shattered if the owner wont drop the price - whereas price a house with offers over £130k and youll at least give it a look, thinking well we have an extra £10k to play with

Its quite a common way for agents to price houses, as it makes the house look cheaper than it is, so gets people through the door. Increase your target market, and youll more than likely get a sale.

This method is also more commonly used if the house is nearing stamp duty levels. As that way, if there is significant interest, there is usually one party who is desperate to have the house, and to guarantee they get it, will offer nigh on £150k

As with all properties, dont buy into the false marketing, just offer what you think the house is worth

Flea

chickmug

flea72 you seem to have a lot to say about these techniques.

Are you an agent or on what do you base your thoughts?

pizzagirl

VKay wrote: »

What I wonder is, what does offers in excess REALLY mean? They can't dictate that we offer over, so what's the point?

Thanks!

In many instances it means that the vendors are idiots who think that their house is worth alot more than it really is. You can waste alot of time dealing with people like this.

chickmug

pizzagirl wrote: »

In many instances it means that the vendors are idiots who think that their house is worth alot more than it really is. You can waste alot of time dealing with people like this.

In many cases I agree the sellers are idiots but there ARE areas, especially in South Devon which I know very well, in which there are sales being agreed and if you were a seller would you not want to maximise the price you got

ognum

pizzagirl wrote: »

In many instances it means that the vendors are idiots who think that their house is worth alot more than it really is. You can waste alot of time dealing with people like this.

Interesting statement, surely they are only idiots if they dont get the price they want or the sale doesnt go through for some reason. Seems to me there are a lot of sweeping statements about sellers being idiots, but many of the sales do go through.