Offer on 'OIEO' price

Damago

We're looking at a house which is on the market at OIEO 450k. The EA has told us it's been on the market for over a year, originally with a different EA who had over-valued it at 560k... then reduced it to 485k, and 3 months ago reduced to 450k we know the vendors are keen to sell ASAP due to relationship breakdown.
A very similar house, the same size in the same road sold 11 months ago for 485k, however it's on the opposite side of the street and NOT backing on to an A-road, the one we're looking at does.
We need to sell our house in order to buy this one, hopefully will be on the market in the next 1-2 weeks.

My question is, once our house is on the market, do you think it's unrealistic to start with an offer of 420k? On one hand I am hoping because it's been on the market so long and given their personal circumstances they could be more inclined to accept lower. But as it's up as 'OIEO' I don't know if that means they won't entertain anything below the 450k and maybe that's why they haven't sold already. I did ask the EA if many people had put in offers to this point, they were a little evasive but it sounded as if the vendors were difficult in flexibility in allowing people round for viewings. We've viewed the house twice and both times they've accommodated the times we wanted straight away.

I know none of you can really answer this as you're not the sellers, I just wanted to get an idea of what others think is realistic...

es5595

If they want a minimum of £450k, I'd probably not offer less than £440k, and if it was a house I really liked and wanted, i'd go in at £450k.

Since your house isn't even on the market yet, they probably won't consider you a serious buyer until your house is sold. As such, if you mess them around with silly low offers, with no completion in sight, their patience may well wear out, however much you think they need to sell! Additionally, if someone else comes in with an offer in the meantime, you may well lose out.

As a seller, i'd be prepared to take a 1-2% hit to have a buyer who didn't mess me about and who I felt was actually going to get to completion. Offer too low or too many offers, and they may worry you'll try and gazunder them later as well...

theartfullodger

You can offer whatever you like: I offered @ 30% off, was v rudely rejected, offered same price a week later, accepted.


Go with what you think it's worth to you

Ozzuk

I always struggle when I see this term. I take it as they won't entertain offers under the price (in this case 450) so unless in a bidding war why on earth would you offer more than 450. So they should just price it at that. Seems stupid to me.

I tend to offer 5-10% under on average, depends on a lot of factors. If its been sat on the market I'd ignore the OIEO and go in at 415, work up to 425 maybe. Work out what it is worth to you, what you can afford and work up to that.

Damago

es5595 wrote: »

Since your house isn't even on the market yet, they probably won't consider you a serious buyer until your house is sold. As such, if you mess them around with silly low offers, with no completion in sight, their patience may well wear out, however much you think they need to sell! Additionally, if someone else comes in with an offer in the meantime, you may well lose out.

Thanks. We won't offer until our house is on the market, I wouldn't expect anyone to consider any offer until we could show we were in a position to actually afford to buy.

Crashy_Time

Damago wrote: »

Thanks. We won't offer until our house is on the market, I wouldn't expect anyone to consider any offer until we could show we were in a position to actually afford to buy.

Good move, offering before you even have a buyer is pointless. The house you are hoping to buy is very likely still over-priced, hopefully some Brexit reality over the coming weeks will shake the tree a bit.