Offers in Excess of

C1996

movilogo said:

I don’t really understand why people get so upset about OIEO adverts. I see it as the vendor telling me the minimum they’d accept, at least in theory. Similar to an auction with a reserve price.

Not necessarily. If no one else offers over asking price, vendor may accept offer below asking price.
So thumb rule is offer what you think the house is worth. Acceptance of offer is not on your hand.

All I can do is offer & see but I won’t get my hopes up. Thank you 

Noneforit999

Gavin83 said:

I don’t really understand why people get so upset about OIEO adverts. I see it as the vendor telling me the minimum they’d accept, at least in theory. Similar to an auction with a reserve price.

Still, as a buyer I don’t think it makes any difference. Offer what you want to offer, OIEO or not.

Offers in excess of means above that amount, i.e that's not the minimum the vendor will accept. We listed ours for £350k OIEO and I told the EA I wanted £355k as a minimum. Fortunately we got £380k. 

If a house is £150k with OIEO and you offer £150k, that is not an offer in excess of.

Im not suggesting people shouldn't offer what they feel they can afford, of course they should but if they have done this a few times and lost out, it would be better to find a property which either has a set price below or at their budget or something OIEO below their budget so they can go above it.

user1977

Noneforit999 said:

Gavin83 said:

I don’t really understand why people get so upset about OIEO adverts. I see it as the vendor telling me the minimum they’d accept, at least in theory. Similar to an auction with a reserve price.

Still, as a buyer I don’t think it makes any difference. Offer what you want to offer, OIEO or not.

Offers in excess of means above that amount, i.e that's not the minimum the vendor will accept. We listed ours for £350k OIEO and I told the EA I wanted £355k as a minimum. Fortunately we got £380k. 

If a house is £150k with OIEO and you offer £150k, that is not an offer in excess of.

But £150,000.01 would be...

Yes, it might mean they're expecting substantially more than the asking price, but you can't assume that. Depending on the state of the market and where they've pitched the asking price, even offers under the asking price may well be entertained.

peterhjohnson

My preference is for a "Guide Price" of £X pitched a a price that should be OK. No one really knows how much a property will go for so this strategy accommodates a sensible offer if it's overestimated or a "bidding war" if underestimated. No one loses "face"

C1996

I viewed the property earlier today and the estate agent informed me that the vendor won’t be accepting any offers under 165k. So learning curve for me, thank you for all of your comments/advice. 

george2017

I think it’s always worth viewing as you never know what will happen.

I viewed a property a couple of weeks ago up for OIEO £390k. When I viewed the EA said they’d already had an offer “close to what they’re looking for”. It put me off offering, though I saw another property I liked better anyway. Well, this property has now been reduced to £380k (no OIEO). So perhaps the vendor has realised they were unrealistic (personally I did feel it was over priced), or maybe the market is cooling and they are keen to sell. Either way, if I HAD loved it but only been able to afford £380k I’d be in a good position right now.

TheJP

C1996 said:

I viewed the property earlier today and the estate agent informed me that the vendor won’t be accepting any offers under 165k. So learning curve for me, thank you for all of your comments/advice. 

What's the learning curve exactly? You knew it was advertised at £165k and above, even if it was advertised as a guide price it was outside your budget. Is

Hopefully the learning curve is to be realistic about your budget and properties, often houses require a little investment after you buy so make sure you account for that. A house you resent and are stretched on is the worst thing you can comprehend.

t1redmonkey

C1996 said:

I viewed the property earlier today and the estate agent informed me that the vendor won’t be accepting any offers under 165k. So learning curve for me, thank you for all of your comments/advice. 

Estate agents don’t always tell the whole truth on that.  I put in an offer on a place for £201k (OIEO £210k), estate agent said vendors wouldn’t take anything less than £210k but they’d put the offer to them anyway.  They came back later and said it had been rejected, so I said ok never mind then and left it.  Then the next day I got a call back saying actually they would accept the offer after all.  It’s all a bit of a “who blinks first” game really with house buying, estate agents are working for the seller so are going to say whatever they can to squeeze every penny out of you.  Sometimes you just have to call their bluff.

raygcon

The house my friend viewed was 550k offer over. I told him to view and put offer of 525, he ended up getting the house for 532.5.  And that is from the first week the property being in the market.

In the current climate, the seller hike the price expecting to get good profit while still asking for more. Don't bother by that. At the end of the day, the house worth the amount the buyer is willing to pay. Ask yourself if it's overprice or not, because other buyers will feel the same.

In terms of EA rejected offer, that's ok. Give it a month, if the house is still on the market then you can try again. If it's gone that means there are people who is willing to pay that or more. Simple. Even if it's gone, keep an eye on it because there is no guarantee it will go through, you might have a chance to snap it again. The house I view previously was on the market for 575k, the EA won't even let us view if our budget does't match that. We ended up viewing it and did not put any offer as the house need so much work it doesn't even worth 500k ( for me ). The week after the price went down straight to 525k and sold for around 510k. You will be surprised how many buyer think the same, but again, it's up to the state of the house.

I'm talking purely from  the seller and buyer perspective ( as I'm doing both ). 

hackneylou

C1996 said:

I viewed the property earlier today and the estate agent informed me that the vendor won’t be accepting any offers under 165k. So learning curve for me, thank you for all of your comments/advice. 

Bad Luck on this occasion but that doesn't mean that properties on at OIEO never go below the advertised amount. It depends on multiple factors and if properties don't sell at their OIEO then the vendor has to consider lower offers. 

If the property is still on the market in a couple of weeks I would try putting in your 160k offer if you liked the property. Though it will probably have sold by then, it's still worth keeping an eye on.