The psychology of the "offers over" situation

lookstraightahead

I've been out of the house buying market for a while. Now I'm looking to buy again I'm wondering what the intention is behind "offers over". I asked to view a property yesterday and the agent wanted proof that I could offer £10,000 OVER the "offers over" price, before she would let me view. I could, but why would I show my hand in advance. They lost a very serious potential buyer. For those who have sold/bought in an "offers over" situation, what has been your experience?

Madhouse2_2

Didn’t buy an offers over property in the end but we did view and offer under the offers over price stated. 

We were never asked to prove we could offer over before viewing (we could have but didn’t think the property & condition warranted it)

Our offer was declined but they did make a counter offer which was less than their offers over price. 

Hannimal

I bought an offers over house with asking price. I ignored the 'offers over'. That's what everyone wants. In my situations I think the sellers couldn't buy the house they wanted if they made anything less, or that's what they told me anyway

lookstraightahead

That's what I found so strange about them expecting me to offer £10000 over the asking price. Just doesn't make sense to me.

Hannimal

Was it a normal EA and not one of the online ones? It does sound odd. They should just change the asking price. 

davidmcn

lookstraightahead said:

That's what I found so strange about them expecting me to offer £10000 over the asking price. Just doesn't make sense to me.

You can of course prove you can afford that much if you want - doesn't stop you from offering a lower amount if that's all the property is worth. Not really "showing your hand" unless you assume everybody offers the absolute maximum they can afford.

numbercruncher8

There is no uniform explanation. Although excluding certain offers could be an instruction from the seller.

Some people have offers over because it's as it says on the tin, they want offers over that amount, because they need a certain amount to move.

Others have offers over in the hope that people will comply, but taking an offer under gives the buyer the feeling that they have won the battle, when in fact they've just fallen into the trap.

Others might even have offers over in the hope that a couple or more bidders get involved and end up bidding against each other.

NameUnavailable

It's meaningless. I've seen plenty of 'offers over' properties reduce their prices. If you say 'offers over £200K' why offer more than £201K to start? Although I would ignore it and just offer what you think the property is worth as their current 'offers over' price may be unrealistic to start with.

Stupid practice. Same with 'guide price' which should just be for auction sales.

HummingBird76

I'm in Scotland where most properties are offers over. I hate it because you literally have no idea what the sellers are looking for! I put my flat on the market for offers over 110. It was valued at 115 and I was hoping for, at most, 120. After 2 days on the market I got offered 130! Naturally I snapped their hands off. The house I wanted was offers over 145, valued at 150, and I got it for 160. I could not have afforded that if I hadn't got that amazing offer for my flat. I got lucky though, because generally, the Scottish system is a nightmare (although the contract process is easier).

lookstraightahead

Hannimal said:

Was it a normal EA and not one of the online ones? It does sound odd. They should just change the asking price. 

Normal EA. I guess if it's still on the market in a couple of months they might lower their offers over price

lookstraightahead

davidmcn said:

lookstraightahead said:

That's what I found so strange about them expecting me to offer £10000 over the asking price. Just doesn't make sense to me.

You can of course prove you can afford that much if you want - doesn't stop you from offering a lower amount if that's all the property is worth. Not really "showing your hand" unless you assume everybody offers the absolute maximum they can afford.

That's true. I was just taken by surprise.