What to offer with 'Offers In Excess Of' property listings

kaylz39

Hi there,

We're going to view two houses tonight which are just around the corner from each other. They're exactly the same in style although 1 has 5 beds & smaller garden and the other 4 beds & bigger rooms/garden.

Both are up for £170,000 OIEO (offers in excess of). So I just wondered what are they expecting to get for the properties?

I know both of them have been up since March/April time, they've had viewings but no offers. The property listings also say they've been dropped by £45,000 to £20,000 for a 'quicker than normal sale'.

I was also wondering if I should ask the sellers what they're expecting after each viewing? I just thought EA might be crafty and not submit any 'lower' offers as they may be holding out for a higher commission? (Might just be me being cynical).

Any advice would be great, thank you!

DRP

kaylz39 wrote: »

Hi there,

We're going to view two houses tonight which are just around the corner from each other. They're exactly the same in style although 1 has 5 beds & smaller garden and the other 4 beds & bigger rooms/garden.

Both are up for £170,000 OIEO (offers in excess of). So I just wondered what are they expecting to get for the properties?

I know both of them have been up since March/April time, they've had viewings but no offers. The property listings also say they've been dropped by £45,000 to £20,000 for a 'quicker than normal sale'.

I was also wondering if I should ask the sellers what they're expecting after each viewing? I just thought EA might be crafty and not submit any 'lower' offers as they may be holding out for a higher commission? (Might just be me being cynical).

Any advice would be great, thank you!

At the viewing I always ask the EA what offer he thinks the vendors is likely to accept.

I bet 95% of houses with OIEO eventually sell for less than the asking price

G_M

Offer what you think the property is worth, provided you can afford it.

Ignore the asking price or 'OIEC'.

Put your offer in writing to the EA together with a copy to the vendor (through the door?).

Include any positive factors eg cash buyer, mortgage agreed in principle, no linked sale, etc

nomoneytoday

It's marketing guff IMHO.
Offer what you think it's worth

Also, as per Freakonomics, the agent would rather take 1% of a lower offer now rather then wait ages for an extra £10

motherofstudents

The way that's worded, it sounds like Express agency or similar. They advertise low but try to get higher offers. I'm sure you can check this site or google. Best thing you can do is check sold prices for similar properties. Just offer what you think is correct for the property condition etc and ignore OIEO,

kaylz39

motherofstudents wrote: »

The way that's worded, it sounds like Express agency or similar. They advertise low but try to get higher offers. I'm sure you can check this site or google. Best thing you can do is check sold prices for similar properties. Just offer what you think is correct for the property condition etc and ignore OIEO,

:rotfl:How did you know? Its Express Estate Agency based in Manchester. To be honest I thought alot of EA did this?

I've had a look online and there's no way of getting a true reflection if what the house is worth now. The last house sale of a similar standard was 5 years ago, when the market went boom. The houses then went for around £220,000.

When I called to view she did point out the OIEO to me & asked if this makes a difference to me which I said it didn't.

Obviously I want to get the house for as low as I possibly can so was thinking if it came to that going in below the asking price as she said they're in a rush to sell and its been on for a few months now. I just don't understand why they would use this term as they've set the asking price to £170,000 surely its worth something around that region?!

irishcol

kaylz39 wrote: »

I just don't understand why they would use this term as they've set the asking price to £170,000 surely its worth something around that region?!

Asking price is just a made up number by the estate agent - normally it's the top end of 2 or 3 estimates given by different estate agents (the vendor usually chooses the highest one to go with).

The actual value of a house cna be massively different to the estate agent's asking price.

All EAs do is use the same tools available to you or I (historic sold prices, current similar properties, seller's position etc) to come up with a number. What a house sells for is usually a compromise between this starting point and the price a buyer is happy to paid - which is then verified by a mortgage valuation that the house is worth at least the agreed amount.

If the EA gumpf states OIEO, just ignore it. Go along, view the property and, if you like it, offer a reasonable amount, ideally with reasons why you think your valuation is correct. then be prepared to negotiate or walk away.

Think of it like bartering in a market / car boot sale / bazaar. It doesn't matter what the label might say, it matters what you're willing to pay and what the vendor is willing to accept. Ideally, both will be happy with the final price.

kaylz39

Yes, you're right.

I was thinking as its been on the market for a few months and the price has been lowered they're obviously in a rush to sell so best to go in with a cheeky offer.

The EA said there was no other interest currently so were not up against another bidder. If they say no, they say no. My worst nightmare would be offering the asking price and they accepting straight way- would be forever thinking would they have accepted lower!

mummybaker

We are looking to buy a house thats on for OIEO 218k were looking to offer £202k then will go up a little to around £208 max as we cant go any higher. It need the bathroom doing and a house in the same road also a 4 bed sold for £198k last Nov .
Good Luck xx

Tirian

We looked at a house that was OIEO £225k (down from OIEO £235k) - we offered £210k and have just bought for £215k.

It's essentially a buyer's market - so offer your ideal price (or a little lower), and be prepared to be haggle a little. But it depends how desperate you are to get the place. If you're going to be distraught if someone else gets it, then offer the asking price or £5k more - you can't drive hard bargain if you're not prepared to walk away.

Mallotum_X

Ignore the OIEO and offer what you feel it is worth to you. If they want to do a deal then they will discuss it with you if not move on. If you are in a strong position, eg nothing to sell, cash buyer etc then make sure this is highlighted to the agent.