Offers in excess of...

mikepoole

We are viewing a house this evening that has just come on the market (the very slow market)

We think we are going to really like this property but it is listed as "Offers in excess of" (England not Scotland and apparently this is a probate case)

If we really like this, we would normally, as our buyers did, offer the asking price on the agreement that if the vendor accepts, no more people view it (there are 5 viewings booked fore this weekend apparently - take what the EA says with a pinch of salt but I'm inclined to believe them in this current climate)

How do we achieve the same result on an "Offers in excess of" property? If, indeed, we can? Any tips gratefully received

Landofwood

Ignore the asking price and any gimmicks such as "OIEO", "Guide Price" or "Fixed Price" etc.

Simply offer what the house is worth to you.

HouseBuyer77

If it's an area with a lot of demand it may well go above asking on the back of multiple offers. In such a situation the agent will probably go to best & final offers following the initial offers. One way to play it is having decided your ceiling price go in at asking or maybe a bit more. Then give your ceiling/best price when going for best & final offers, though you run the risk the vendor will just choose the best initial offer they see. However if you go in with your best initially you may end up setting the base price for the best & final offers...

It's worth stressing your proceedability, I got my current purchase despite not being the highest bidder because they considered me more proceedable (FTB and a reasonable deposit vs a chain). Conversely if you're not very proceedable you may need to bid higher to beat out those who are!

Landofwood

HouseBuyer77 wrote: »

If it's an area with a lot of demand it may well go above asking on the back of multiple offers. In such a situation the agent will probably go to best & final offers following the initial offers. One way to play it is having decided your ceiling price go in at asking or maybe a bit more. Then give your ceiling/best price when going for best & final offers, though you run the risk the vendor will just choose the best initial offer they see. However if you go in with your best initially you may end up setting the base price for the best & final offers...

A strange thing to say, given we have no idea whether this property has been priced correctly. It's not gonna go above asking if it's listed at 50k more than it's worth is it?

Hoploz

When there is little on the market there is often a premium. It's simple supply and demand.

If it is ideal for you and it is better than anything else available at a similar price, then it is worth more to you. It's as simple as that. If it's a long term purchase then pay more. Prices tend to rise over long periods of time so there's no reason not to. Clearly a lender's valuation would alert you if you were too far adrift.

It's tricky to know what to offer, that is why there are always loads of posts about it on here. It's down to you and your own circumstances, and that of the seller. You know the seller here is motivated. You also know they are likely to want the best price as this is often the remit in a probate sale, especially if dealt with by solicitors directly. However, proceedability is vital as well. No point having a great offer if it falls through three months down the line.

Best and finals is terribly stressful but I always think it gives everyone one last opportunity not to miss out. I have been through this scenario three times (and won once). Everyone wants the best price, the EA, the executor and the family. If you can afford to stretch then it may be worth it, if you can't find anything else you like, and you will otherwise still be searching in a year's time when prices have gone up by 10%, for example, as they would around here.

Hoploz

Landofwood wrote: »

A strange thing to say, given we have no idea whether this property has been priced correctly. It's not gonna go above asking if it's listed at 50k more than it's worth is it?

It makes no difference. It could be special in a particular way that makes the buyer want it more, so if they have the budget and are willing to pay, then that is the value.

HouseBuyer77

A strange thing to say, given we have no idea whether this property has been priced correctly. It's not gonna go above asking if it's listed at 50k more than it's worth is it?

Well you never know... Is it overpriced compared to similar properties in the area? If your ceiling is below asking then by all means go in with that offer. If it's above asking and multiple offers are likely then what I suggest is one way to do things.

jimpix12

Hoploz wrote: »

Best and finals is terribly stressful but I always think it gives everyone one last opportunity not to miss out. I have been through this scenario three times (and won once). Everyone wants the best price, the EA, the executor and the family. If you can afford to stretch then it may be worth it, if you can't find anything else you like, and you will otherwise still be searching in a year's time when prices have gone up by 10%, for example, as they would around here.

Wow, where is the holy land where house prices will definitely be 10% more in a year's time? Are crystal balls cheap in Surrey?

Hoploz

You may have missed the 'if' at the beginning of the sentence. But yes, prices do tend to maintain their levels here in these parts. Even the crash of 2008 when everyone else was complaining about huge dramatic losses, my village reduced by maybe 10% at most and soon recovered and rose way back up and beyond. 2013/2014 saw rises of approx 15 to 20% here. We are now around 25-30% higher than the 2007 peak.

A friend of mine was looking for two years, she was very picky with a limited budget. She watched as houses she was looking at rose from 400k to 500k, moving way beyond her budget. She ended up stretching her budget with a massive mortgage, and still having to move to a cheaper area a few miles away. This is the kind of scenario I am suggesting can happen if you're not careful. A couple of thousand to secure a property can save a fortune in the long run.