Opinions on offering a house OIEO

deaston

giddyG2001 wrote: »

I agree but are they going to see 130k as a starting offer? I can't really go massively higher - approx 132k

We recently saw our perfect home. They'd had an offer (all the agent would tell us is it was too low) and we toyed with the idea of playing games, but having looked for almost a year we decided we'd be annoyed if we lost it. We offered the asking price but made it clear it was our maximum offer as we simply couldn't afford any more (a little lie).

A house is only worth what it's worth to you.

deaston

giddyG2001 wrote: »

Good point, never thought about that, will ask when I see again on Saturday

The area I live in now, any windows of any house that are visible from a particular road have a preservation order and need planning permission - and uPVC isn't allowed. Might have been the sheer cost of replacing those windows that made them not bother?

giddyG2001

How would I find this out though, if they don't tell me the truth when I ask?

deaston

giddyG2001 wrote: »

How would I find this out though, if they don't tell me the truth when I ask?

I think they have to tell you the truth by law. Unless someone knows otherwise?

Planning rules for individual areas are the domain of the local council. Look at their wesbite or call them. Also, just look at the other houses in the area - if none have uPVC windows, there's a reason.

giddyG2001

So I asked about the windows today, she said no reason, they just didn't get them done.

I offered 125k (on my mum's advice as that's what she believed it was worth after viewing it) to EA and cited that the windows needed to be done and that the most recent houses on that road in a similar condition were sold for approx 125k.

He came back saying the vendor wanted nearer the asking price but for 127k he could get it off the market. I decided to leave my original offer on the table to give them a few days and will probably offer 127k on Monday/Tuesday if I don't hear from them

All in all, if I get it for that, I'll be pretty happy considering what it was on for.

My mum also raised the point that she didn't know where the extra 10k came from when it was previously on for 120k as all they seemed to have done is fit a new boiler, carpets and paint.

Ms_Sophia

Can I ask if it's standard to make an offer what are below the price £XXX when a property is marketed at "OIEO £XXX"?
Surely, I understand that there is a number of factors that any buyer takes into account, such as how much they liked the property, and how many they've seen already and how this one is better for them, the sold prices in the postcode/on the street etc.

But in general - if a property is marketed at "OIEO £XXX" - doesn't it mean that the owner expect it to be higher than this figure? Just trying to understand the principle.

Ms_Sophia

I see.
We've been given an advise by an estate agent to put a property on the market with this "OIEO" say £400k. The actual valuation of the property done by the same agent was £430k. A few other agencies valued it as well at £425k-£430k.
So this agent suggested to put it on the market as "OIEO of £400k" and have an Open Day saying it'd attract more people because of the lower number - and then the buyers would be making offers and most probably way in excess of £400k, i.e. much closer of our desired figure of £430k.

We did that - but it kind of backfired. All buyers seem to have thought that this was the price we wanted (£400k) - or very close to it. So they were kind of benchmarking or anchoring their offers to the number in the property advert. So they'd be offering £400k or £405k etc., some of them even saying "we're offering you a full asking price of £400k" etc.

Afterwards another agency told us that it isn't the best practice necessarily, as most buyers perceive a number next to a property as an asking price, regardless of how it's phrased.

dimbo61

"My mum also raised the point that she didn't know where the extra 10k came from when it was previously on for 120k as all they seemed to have done is fit a new boiler, carpets and paint."
Now a new boiler will cost £1500/2000 and if they used professional painters that all adds up.
If £127,000 get the house then £3,000 can pay for new windows and you have the home you want on the road you want to live on.

bigfreddiel

A couple of years ago I saw a house ideal for me on the road I wanted for £350k

I was first to view and offered a week later at £325k

Offer was rejected, and vendor said £345k would be okay, I just walked and said I wasn't interested.

Guess what? A week later the vendor came back and accepted my original offer!

I knew he was in the middle of a development, and probably needed the cash!

So you could try that technique but you do risk losing the property, but there agin it's only a house

Good luck

fj

nic_santorini

OIRO could be slightly lower or higher. We put our on and all got lower offers - the investors would have put in a stupid offer, they always do. Offers in excess of, only get £500 more than the start price, unless of course there is a battle of buyers and it goes to sealed bids.

I think you have done the right thing starting at £125,000k. Good luck