Offers Over...

nancyo

Hi Folks,

I have been reading up on a few older posts and people are saying that buyers should expect around 92% of the asking price, is this still the case with offers over?

For instance if the house was offers over £100k, are the expecting to get 92k?

Advice would be greatly appreciated, 1st time buyer

somethingcorporate

Depends on the position of the seller. If it is a brand new property to the market then chances are they will be expecting close to the asking price. If it has been on a while then chances are they would be more open to offers but really completely depends on a number of factors.

Some will take nothing off the asking price (eg https://forums.moneysavingexpert.com/discussion/3078362)

Others you can get large discounts (recently got our house for about 15% under asking and they had previously rejected a higher offer).

Good luck, if you don't ask you don't get!

Edit: I forgot to answer your questions... Offers over may have slightly higher expectations from the seller but nothing hard and fast!!

madmish00

I would ignore the Offers Over to be honest and just go for what you think it is worth.

The house we are in now was on for offers over and we paid 3k under (in 2006 when market was at peak)

But

The one we are looking at now says offers over and the EA has said the vendor is looking for offers at 10k ABOVE the price despite market being rubbish!

We have put in a offer at what we think it is worth and are waiting to hear back.

nancyo

Good Luck Madmish hopefully you get it for a good price

Thanks!

Doozergirl

92% is an average. It doesn't mean that is what vendors expect or indeed that the property is worth 92% less than the asking price.

It seems to have been 92% forever. I can remember it being that in 2006 as well. Means nothing.

Nothing is average. You make you own mind up as to how much you think a place is worth.

angel1976

Ours was on the market at 'offers over' - our EA's recommendation as we didn't want to accept much lower than the asking price. We bought at the peak of the market. In the end, we took an offer of 10% under as the buyer is a cash buyer and we had enough equity in our house to take the hit. If it was another buyer in a chain or with a mortgage, we probably would have just waited.

One of the flats near us is on the market for a fixed price as I know he bought for only £5000 less for what it is on the market for now at the peak of the market. I don't think he will get anywhere near the asking price but you never know... And how low he will accept is anyone's guess!

Another house our agent is marketing (and tried to persuade us to buy!) is on the market for £85k more than our top budget (and for 'offers over' as they had already dropped £50k in price!) and our agent said they are desperate to sell and he is convinced he can get it for us within budget...

And so we have taken a 10% under for our house but the house we are interested in, the sellers won't consider us offering them 6% below asking DESPITE having been on the market for 3 months and no other offers that match our offer.

So I think anything is possible! You just don't know what the situation of the sellers are in until you make your offer! Good luck.

Incyder

It would be nice if it were law that if someone clearly states in their advert, that they require offers over then a buyer cannot make an offer under.

This is the way it works in Scotland. An offer over 100k for instance means you write your offer over 100k down and it is sealed in an envelope. All offers are opened on a given day and the highest wins. Marvellous. That should be law in England too.

googler

Incyder wrote: »

This is the way it works in Scotland. An offer over 100k for instance means you write your offer over 100k down and it is sealed in an envelope. All offers are opened on a given day and the highest wins. Marvellous. That should be law in England too.

1. It isn't 'the law' in Scotland. Whether at Offers Over or any other pricing type, an offer can be made at any time, independent of whether or not the selling agents have declared a closing date. The offer CAN be lower than the 'Offers Over' figure.

2. If only offers over the asking price are acceptable, how do you explain the many properties that have sold in recent years UNDER their Offers Over prices?

Incyder

googler wrote: »

properties that have sold in recent years UNDER their Offers Over prices?

Exactly my point. That needs stamping out. An offers over advert should mean just that. Any offer that is under an offers over price is clearly not an offer over that the seller was requiring hence the offers over advert. The offerer has clearly disregarded the advert requirements and their offer should not be allowed.

googler

Incyder wrote: »

Exactly my point. That needs stamping out. An offers over advert should mean just that. Any offer that is under an offers over price is clearly not an offer over that the seller was requiring hence the offers over advert. The offerer has clearly disregarded the advert requirements and their offer should not be allowed.

So you agree that at the moment, this is not 'the law in Scotland' as stated in your earlier post...?

And you do realise that 'Offers Over' pricing is disappearing for all but the more specialised or unique properties, due to the Home Reports having a surveyor's valuation ....?

The idea that a seller would disregard what may be their only offer because it falls below their asking price is ludicrous in the extreme. If a seller is looking at paying a lower price than expected for their onward move, they may be able to accept less for their current sale, and hence accept something under their asking price. What's wrong with them negotiating that with the buyer?

googler

nancyo wrote: »

I have been reading up on a few older posts and people are saying that buyers should expect around 92% of the asking price, is this still the case with offers over?

I read a post where someone said that 'houses were selling at, on average, 92% of their asking prices. If that's the one you mean, then that's not the same as 'buyers expecting around 92% of the asking price' .....