FTB O.I.E.O and how much to offer

Mrs_Cheese

Hi all,

First post and first time buyer!

Husband and I are wanting to offer on our first property and I'd like a bit of advice on how to play it.

A bit of back ground info, the sellers bought the house 5 years ago, they listed it for sale in may 14 for 30k more, it didn't sell, they then listed in in Nov 14 with a different EA for 20k more, they then reduced in at the end of April 15 for O.I.E.O for what they paid for it.

We love it and can stretch to the asking price but we don't want to over do it and offer two high knowing that both parties will want to negotiate.

How low would you go, we thought 10K under but not sure if we should be a bit bolder given that they haven't had any offers previously.

Any advice is much appreciated.

princeofpounds

If you think it is worth the asking price, then I would consider offering under, making it clear you appreciate how it is being marketed, but it is a genuine proceedable offer you would like them to consider.


If they say no, because they won't accept less than the OIEO, then say best and final at their minimum asking price. You'll probably find they'll take it, otherwise why bother marketing at that level?


If it's not worth it, then don't bother.

ellie27

Sounds like a similar situation as the house we are buying!

What is it worth to you? What is the max you would be prepared to go up to? Are there similar houses that sold in the last year?

How have prices changed in the area in the last 5 years? Where I am they are pretty much same as 5 yrs ago.

How do you know there have not been any offers? Perhaps they have just not had an acceptable offer?

In the end we offered £3k under which was rejected , then £2k over and that was accepted.

Good luck!

Mrs_Cheese

Thanks for the replies.

We have said we will go 2k over the asking price if need be to get it but we are already spending every penny to potentially get it (mortgage repayments not an issue it's all the additional costs associated with buying).

We think they overpaid 5 years ago and they haven't done any work on it other than a bit of painting.

We are in Leeds and in parts of it the prices are shooting up but we have compromised slightly on area to get a long term house and the prices seem less manic there.

The only other sale of a similar house was in Feb 14 for 30K under the one we like but it has less outside space and it a slightly odd layout and much scruffier.

I'm already stressed! dreading this whole process!

Landofwood

You should only offer exactly what the house is worth to you. Forget the asking price and gimmicks such as "guide price" and "OIEO".

Do your research of the local market and offer an appropriate amount.