Offers in Excess Of

jagger86

What is the deal with offers in excess of??

We went to a view a house today which was advertised as £140,000 offers in excess of.

In my book that means don't take the mick and offer less than asking price. So anyway we went to look at it, perfect, fell in love, it was the one! Offered asking price, rejected. Offered £145,000 and the estate agent called to say they are looking for £155,000-160,000 for the property and it's actually been valued at £160,000.

I have just never heard of this before. Who would ever offer £20,000 above advertised price!? Also if it's worth that why advertise it lower.

I'm just so annoyed as it's a waste of time for all involved and another house I had my heart set on and now this.

I don't get this offers in excess of, why not put offers in region off £160,000 if that's what it's worth.

To be fair I think it's the more the estate agents than the vendor. He said it was to generate interest pricing it low but what's the point in generating interest with people who are looking in a certain price bracket!!

PasturesNew

You're right. It's a nonsense and will put off many people from viewing it.

It's probably mostly where the owner wants the high price, but the agent wants the business, so goes along with this crazy concept that people will offer more than the advertised price .... once they've got the signature on the contract and no high offers are forthcoming, they then might be able to keep the business still and get the seller to reduce the price if it doesn't sell in the coming months.

eddddy

It's just salesmanship.

The EA will be simultaneously trying to bully you into offering £160k, and trying to bully the vendor into accepting £140k

... and hoping that one or both of you compromise - perhaps at £150k.

G_M

jagger86 wrote: »

Who would ever offer £20,000 above advertised price!?
Someone who wants it enough to pay that much if pushed?

Also if it's worth that why advertise it lower.
Because advertising at £20K more might discourage viewers?

!

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jagger86

I just can't see anyone viewing a house at £140,000 then offering £160,000. I pointed out to the estate agent that based on our deposit size at minute we are searching for 3 bed properties up to £140,000 and this came up!

We can get a mortgage for £160,000 but don't have the extra £2,000 deposit needed along with all the fees right now. I am on maternity leave and my full pay ends in feb/march.

I looked on zoopla and they did actually buy the house for £160,000 in 2013 so can understand them not accepting £145,000 but I just think the estate agent is marketing it wrong.

adhara

Ah, you see, you're applying common sense, so no wonder you're confused!

(Not) obviously, they assume buyers will froth at the mouth for this 'great deal', and incite a bidding war to get the price they actually want. The chance of that working is another matter entirely...

jagger86

Yeah I can't see it working neither. Not around here anyway!

We were buying a house last May which was £135,000 OIEO and we offered £137,000 and it was accepted. It actually fell through in the end though due to my partner not being approved for the mortgage but that's all sorted now.

So I just surprised to find out they were looking for £20,000 more. It's a big difference in my opinion.

I will be curious to see what happens with this house....!

jagger86

Also the estate agent said "this is how they do it in Scotland" which really annoyed me because we live in a village in the midlands!

kinger101

Generally, from the properties if seen on the market with "offers over..." in my region, I get the impression that these people are dreamers, or perhaps have equity issues (probably the case here given they paid £160K in 2013). They're typically reduced in £10K steps until they finally hit a more realistic price. The best you can do is leave your offer on the table, explaining that this is your maximum. And keep looking.

Pixie5740

jagger86 wrote: »

Also the estate agent said "this is how they do it in Scotland" which really annoyed me because we live in a village in the midlands!

I was going to ask if you're in Scotland but obviously not. I don't particularly like the offers over system myself. Especially when the home report values the property at £X but really you need to offer £X + 15% (at least you do in Aberdeen) to have the winning offer but your mortgage LTV is based on the home report value. Maybe now is the time to buy whilst the price of Brent Crude is low and people are more eager to sell.

AnnieBox

I agree that offers in excess of isn't a great system but this seems like an extreme case!

I am currently buying a house that was listed oieo £120,000. I viewed it the day it came on the market and I offered £125,000 with the condition that they stopped marketing it and thankfully they accepted it but it was really nerve wracking! (I went straight in with an offer over £120k because cheap houses in need of doing up are snapped up so quickly in my area! I didn't wanna risk losing it by offering lower, but I also couldn't really afford to offer much more.)

If my seller had pulled the same stunt this person did I would of had no choice but to forget about the house and move on but I really loved the house so it would have been heartbreaking because I'm not in the position to look at anything over my budget. I think the sellers/ea are being very cheeky with the way they are marketing this house and it's really unfair on prospective buyers