Offers in excess of £250,000?

rob_b_5

Looking at properties online during the last few months, I've been seeing this a lot on sites like RightMove.

Does anyone have any experience with what this usually means in practice? Is it just a way to get the attention of people who are trying to avoid going into 3% stamp duty, in the hopes that you'll "fall in love" with a place and overstretch yourself? Are offers of £250k likely to be considered?

I don't really want to spend time and energy viewing places that are out of reach.

For info: South London area. I guess the answer to my question might depend significantly on supply and demand.

Rob

rob_b_5

Sorry, I've just realised there is a "House Buying, Renting & Selling" board.

If an admin could move this, I'd be grateful...

AndyGuil

They don't want people who are concerned with the stamp duty change at £250k. I.e. bidders need to be prepared to pay more than £250k and they will also be paying 3% stamp duty.

Wh05apk

We have recently purchased a flat, at offers over £x for £4,000 less than that, offers over means nothing, just offer what you feel is right.

contractor

AndyGuil wrote: »

They don't want people who are concerned with the stamp duty change at £250k. I.e. bidders need to be prepared to pay more than £250k and they will also be paying 3% stamp duty.

250k *1.01 = 252.50
250+£1 * 1.03 = 257.50

5 k difference for £1 extra seems dumb.

rob_b_5

contractor wrote: »

250k *1.01 = 252.50
250+£1 * 1.03 = 257.50

5 k difference for £1 extra seems dumb.

My thoughts as well...
Would be interested in hearing from anyone else with experience buying or industry experience of the housing market in this area.

kwmlondon

Wouldn't it be fairer to apply extra tax to the bit OVER the threshold e.g.
If a house cost £250,000 you pay 1%
If a place costs £3000 you pay 1% of the first £250,000 and then a higher rate of the £50,000 over the threshold.
I'm sure they could make it work so that overall it makes the same amount of tax, and it would be no more complex than income tax where you pay a higher rate only on earnings OVER the tax threshold but it would be much fairer and cause fewer STUPID humps in the market.

AndyGuil

It is a silly implementation of the tax. I think it is something they will change in future. There is a lot f pressure to make the change.

amnblog

since when was tax fair?

In answer to the question

no-one with half a brain expects to be paid £255,000 or £260,000 for a property

RightMove uses the tag 'offers over £250,000' because their web guru's tell them it achieves the results they want - whatever that is

Stratus

Interesting article here on the subject of Offers in Excess of:

http://www.estateagenttoday.co.uk/news_features/Online-agent-rapped-over-Offers-in-Excess-Of-advertising

Thrugelmir

AndyGuil wrote: »

It is a silly implementation of the tax. I think it is something they will change in future. There is a lot f pressure to make the change.

Generates revenue for the Treasury though. With the wealthy south east contributing the most.