The psychology of the "offers over" situation

lookstraightahead

Angela_D_3 said:

Mine went for £9,000 over the asking price without me even needing to ask.  From a vendors point of view I hated it because lovely young couples were looking thinking they’d get it at the asking price.  What more could they do and they were gazumped.  Happened to one pregnant lady three times.  I felt like !!!!!! tbh 

I think this is sometimes what the estate agent is thinking, that people will get into an auction type situation. I would struggle to do that and just walk away (hopefully). I suppose as a vendor or buyer, I would now worry about the valuation by the surveyor.

youth_leader

Argh the psychology of the 'offers over'.  I had this on my description with my last EA because I wanted to avoid the chancers trying to find everything and anything wrong to chip the price down to a price they could afford.   Didn't work.

lookstraightahead

youth_leader said:

Argh the psychology of the 'offers over'.  I had this on my description with my last EA because I wanted to avoid the chancers trying to find everything and anything wrong to chip the price down to a price they could afford.   Didn't work.

Do you mean the "offers over" didn't work or the chipping down? I'm curious because I wasn't even allowed to see a property without proof that I could afford £10000 over the "offers over" which I found a bit strange. It maybe would be better to have something like the actual price you are willing to accept rather than hoping you will get more than the property is worth? As that can also lead to trouble on valuation.

youth_leader

I meant asking for the offers over didn't work   When I was on at offers over £400 I had two offers, one at £365K, one at £350K.  First sale fell through as he didn't have any money at all, his ex wife had it.  Second buyer kept quoting ridiculous renovations costs and reduced his offer to £305K ... then £285K.  I withdrew from the sale after months of ugly negotiations, and sold at auction. 

youth_leader

Sorry, I meant to add that I had to offer over asking to secure a property.  Luckily the vendor accepted !% over the asking, and didn't pitch me against the others.

Angela_D_3

lookstraightahead said:

Angela_D_3 said:

Mine went for £9,000 over the asking price without me even needing to ask.  From a vendors point of view I hated it because lovely young couples were looking thinking they’d get it at the asking price.  What more could they do and they were gazumped.  Happened to one pregnant lady three times.  I felt like !!!!!! tbh 

I think this is sometimes what the estate agent is thinking, that people will get into an auction type situation. I would struggle to do that and just walk away (hopefully). I suppose as a vendor or buyer, I would now worry about the valuation by the surveyor.

I put together a sellers pack with the survey etc 

lookstraightahead

youth_leader said:

I meant asking for the offers over didn't work   When I was on at offers over £400 I had two offers, one at £365K, one at £350K.  First sale fell through as he didn't have any money at all, his ex wife had it.  Second buyer kept quoting ridiculous renovations costs and reduced his offer to £305K ... then £285K.  I withdrew from the sale after months of ugly negotiations, and sold at auction. 

What a horrible situation for you. They were hugely under asking price! 

Mickey666

Angela_D_3 said:

Mickey666 said:

Angela_D_3 said:

Mine went for £9,000 over the asking price without me even needing to ask.  From a vendors point of view I hated it because lovely young couples were looking thinking they’d get it at the asking price.  What more could they do and they were gazumped.  Happened to one pregnant lady three times.  I felt like !!!!!! tbh 

But not bad enough to sell at your asking price?

Not so much a criticism as a simple observation that reminds me of archtypal holiday town resident complaining that 'incomers' have driven up property prices by buying holiday homes, with the result that their kids can no longer afford to live there.  Well yes, but who is it selling their houses to 'incomers' at those inflated prices . . . . ?

Well no. 

I’m not a charity. 

Of course you aren’t.  No one is.  You felt sorry for the young couple but not sorry enough to help them out.  I can understand that, but it’s the sort of thing that drives up prices, which then means everyone has to pay more when they move up - larger mortgage, higher SDLT, higher EA fees, higher conveyancing fees etc.  It is what it is.

Magdoo

EA agent advised me offers over was a sales tactic and suggested I do this. I did, but I ended up changing it to OIRO as I didn't like offers over, plus I didn't have any offers! Also, from my point of view as a buyer knowing this I always ignore the term offers over. 

BikingBud

lookstraightahead said:

youth_leader said:

I meant asking for the offers over didn't work   When I was on at offers over £400 I had two offers, one at £365K, one at £350K.  First sale fell through as he didn't have any money at all, his ex wife had it.  Second buyer kept quoting ridiculous renovations costs and reduced his offer to £305K ... then £285K.  I withdrew from the sale after months of ugly negotiations, and sold at auction. 

What a horrible situation for you. They were hugely under asking price! 

Or perhaps the asking price was hugely over actual value.