"Offers in Excess Of" or "Offers over"?

Smoggie69

Our house is currently on the market. We originally had the house on this time last year, with a local estate agent, for £127,000, but had no viewings at all. We are trying again this year, as we've paid more of the mortgage off. This time we've gone with an internet firm who have put it on Rightmove, etc. for an up front fee. It's has been on for about 6 weeks for £123,500, but again we've had no viewings.

To clear the mortgage, including all solicitor's fees, mortgage fees, etc. we would need to sell for no less than £118,000.

My question is, how are the terms "Offers in Excess Of" or "Offers over" perceived by buyers? Would we be better putting offers in the region of say £119,950?

hcb42

OIRO sounds better, (unless in Scotland, when OO is the norm, but even then FP is more prevalent than it was) but I would suggest at £118K minimum you have no margin for error here, especially given you have low demand i.e. viewings for the property.


EDIT: I would probably look at the fees as the cost of moving though, not to repay the mortgage. However you would need the cash for that (and deposit for new place too, at a reasonable % of value)

If you put it on at £118K do you think you would stimulate any interest? It is only £5K below where you have had zero, so I wouldnt have thought the demand for housing was that sensitive

Smoggie69

Thanks. I was thinking when I was writing it to put I'm in England, then just left it out. Too busy focusing on figures.

My parents are helping out with the deposit for a new place, so I just need to clear the mortgage. I'm overpaying every month, so as time goes on I should be able to lower the price we a willing to sell for.

Another problem is there is a similar house on the same road on for £125,000, which has been on for a little while.

Yorkie1

The general approach of OIEO / OO has been discussed on here. Some buyers wouldn't be inhibited by the pricing, and would still feel happy to offer below the price given.

Others (myself included) said that they would be put off by the strategy, and that it indicated an inflexible or greedy (depending on the price) buyer.

Ivana_Tinkle

I think many people are scared off by anything that isn't straightforward, and for that reason I don't think it's a great idea to go with things like "offers over" or "offers in the region of". If you do a search on here, people regularly ask whether it's OK to make a lower offer on an "offers over" property, so it obviously is something that causes confusion.

My current property was advertised at "offers over" with very little interest. We eventually paid quite a lot below the "offers over" price - I think if they'd just advertised it at that price in the first place they would have got more potential buyers through the door and could have played us off against each other to get more money, IYSWIM.

Perhaps it might be sensible just to drop the price to, say, £120,000 and see how that goes?

mrsmchapman

I admit to being one of those who see's properties with oieo and oiro as a little bit annoying. I've no idea what to actually offer. Yes I could offer what I feel its worth and get either turned away or offer accepted, but I would just prefer to see a price and go from there. What I feel is in excess of or region of and what the vendor feels this is could be miles apart. I also feel that oiro or oieo are also a no go if its close to a stamp duty threshold

brit1234

"Offers over" is a straight put off for many buyers as it appears no negotiating room and stubborn seller. People just move on and look at the next house.

hazyjo

Smoggie69 wrote: »

My parents are helping out with the deposit for a new place.

Just to pre-warn you... are your parents giving the deposit, or lending it? Lenders don't look favourably on the latter.

Agree with above that OO isn't always appealing and some people will write it off. Personally, I'd look at it if I liked it, but certainly wouldn't be paying over the odds for it if there was no other interest.

Forget what other houses are up for, what have similar nearby ones actually sold for?

Jx

Smoggie69

It will be a gift.

Other similar houses have sold for between £111,500 (vacant property) to £125,000 over the last couple of years.

I'll probably just drop the price to under £119,000.

Mallotum_X

If you are getting no real interest than I don't think OIEO type pricing is going to work. You need to generate some interest. If you really do need to get £118k (and assuming that is realistic compared to anything that has sold recently near you) then I would get it down to say £119,995 so it comes in under the 120 on searches and be prepared to negotiate. The fact its been up for a year at 127 is suggesting the price you could achieve is going to still be some way south of even £120.

Sorry but it looks like you may have to take a loss to move on

Smoggie69

Thanks. It was on for 16 weeks at £127,000, then we took it off until January this year when we put it back on at £123,500. I think a sub-£120,000 is the way to go. At the end of the day we can't really sell for less than the mortgage owed, but some interest and offers would be nice to gauge the market.