OIEO advice

mustardtree6

I have read around this subject and I am about to make an offer on a house which is OIEO of £270K in South West England.  I am a FTB.  It was originally marketed mid-April 2021 for £290K.  Three weeks later, the price reduced to OIEO £270K and the EA has indicated that there has been lots of interest and 7 viewings in one day.  Would an offer of £268K be acceptable?  It is the maximum of my budget.  However, the market seems crazy and properties are known to be sold within 24 hours of appearing on rightmove. TIA

Slithery

mustardtree6 said:

Would an offer of £268K be acceptable?

The only person who could possibly know the answer is the vendor, but as it's your maximum you just have to try and keep everything crossed. Currently most properties are going for well over the asking price.

theartfullodger

Offer whatever you like.  I offered way (more than 10% off) lower that oieo price.  Got the rudest ever rejection from agent acting for vendor.  Thanked them politely.  Waited a week.  Same offer, via solicitor.  Accepted.  

You never know.

lookstraightahead

Always makes me laugh because it's not been reduced at all really. 290 would expect offers of 270, so offers in excess of 270 is the same thing really.

I've just bought for 10% under asking price - the house had been on the market a week and there were two offers, so not all properties go fir over asking. We got the house because we were bottom of the chain with no property to sell (as we had broken the chain previously and gone into rented).

Ignore OIEO, it's a gimmick. Offer what you can afford and if it's rejected, walk away. They seem to be in a rush, you are a FTB. It's just a house.

AdrianC

lookstraightahead said:

Always makes me laugh because it's not been reduced at all really. 290 would expect offers of 270, so offers in excess of 270 is the same thing really.

It's marketing...

Nobody offered when it was listed at £290k. You can safely say that's too high.
Maybe more people are interested now it's listed at £270k+. Or maybe the EA's spinning a line.

One thing's for sure, there's only one way to find out if £268k is enough... Offer it. Gets rejected? Hey-ho. What did you lose?

Falafels

When I sold my house, I quite consciously marketed it at 5% more than I hoped to get. People like to feel they've knocked the price down. When the below asking price offer came in at exactly the sum I had in mind, I told the EA to accept it. They got back to me the following day to say they'd got my purchaser to increase their offer - which effectively paid the EA commission plus a bit extra.

You've nothing to lose by offering £268K.

There may well be a lot of interest in the property, but that doesn't mean it's going to sell immediately. When we were looking for a property, there was one where the EA was booked up to the hilt and advised us to contact them a week later to arrange a viewing further down the line. In the event, we'd found somewhere else - but that property was still on the market three months later.

NameUnavailable

Offer £260/265K. If they reject that you can go up to your maximum and final offer of £268K. If you start at £268K they'll most likely say no hoping that you will increase your offer.

getmore4less

AdrianC said:

lookstraightahead said:

Always makes me laugh because it's not been reduced at all really. 290 would expect offers of 270, so offers in excess of 270 is the same thing really.

It's marketing...

Nobody offered when it was listed at £290k. You can safely say that's too high.
Maybe more people are interested now it's listed at £270k+. Or maybe the EA's spinning a line.

One thing's for sure, there's only one way to find out if £268k is enough... Offer it. Gets rejected? Hey-ho. What did you lose?

There is also the unrealistic seller factor 
Can put people off making offers, don't want to offend,  this  can suggest that even reduced it may still be too high.
The drop from 290-270+ gets 2 bands of RM viewers but may still be optimistic
Unless something unusual research should get close to where people have been pitching from the SSTC data and the sell though which are now showing March data

As the OP is at their limit they need to be sure that the ~270+ is potentially sensible or still speculative with 268 still being too much

mustardtree6

Thank you for your advice.  My offer of £265K was declined.  EA said that they had reduced to £270K last week and had generated a lot of interest and are basically holding out for at least £270K.  The last two similar properties on the road sold for £256K (Aug 20) and £250K (Jan 20). 

lookstraightahead

mustardtree6 said:

Thank you for your advice.  My offer of £265K was declined.  EA said that they had reduced to £270K last week and had generated a lot of interest and are basically holding out for at least £270K.  The last two similar properties on the road sold for £256K (Aug 20) and £250K (Jan 20). 

Move on then. Seriously don't get involved. They will come back if / when they don't sell.
we offered on a property six months ago and someone else offered more. In the meantime we found a much nicer place. The other property fell through and is still on the market, 10% less. Glad we didn't get it now.