Making an offer, when sale price is OIEO

newsgroupmonkey_

sheramber said:

user1977 said:

No harm in making an offer. Certainly in Scotland (where "offers over" is the norm) it's pretty commonplace for properties to be sold for less than the asking price, just depends on the local market.

Don't bother offering below asking price in Edinburgh area. Houses can sell for 16% over.

You don't get bidding wars because if there is interest in the house it goes to a closing date. So you are bidding blind.

A home report is required before advertising so you know the surveyor's value of the house up front.

Wait until you see Dumbarton and Helensburgh!

I had a mate looking in certain areas around there and some places were going for 35% over asking.

[Deleted User]

KDavies16 said:

My husband and I are FTBs, we have seen a house that we want to put an offer in for. The sale price is "offers in excess of", but when we have reviewed recent sale prices for similar properties, the offers over figure is about £20k plus.
Is it acceptable to offer lower than the offers over figure? If so does the rule of making an offer of between 5% to 10% off the asking price still apply?

We fell in love with a house at the peak of the crazy buying last year. It was on at Offers Over or OIRO (can't remember which) £650k. We adored it but the figures didn't really add up for us. There had been the same floorplan house on the same estate sell just a couple of months earlier for £580k and the market hadn't jumped to that extent. However, we said we would offer at £650k because we loved it so much. The estate agent said the vendor was looking for £675k. I thought this was a massive jump for something that was advertised at £650 to then say you wanted £25k more. Really it wasted everyone's time because we just couldn't meet the £675k and wouldn't have looked had we known that.

As it turns out, as beautiful as the house was, they didn't get a buyer then after a few months so most people must have thought the same thing. It's recently appeared on the market again at £695k.

Ultimately, stick to what you believe it's worth - especially if you only have a small deposit.

lookstraightahead

Deleted_User said:

KDavies16 said:

My husband and I are FTBs, we have seen a house that we want to put an offer in for. The sale price is "offers in excess of", but when we have reviewed recent sale prices for similar properties, the offers over figure is about £20k plus.
Is it acceptable to offer lower than the offers over figure? If so does the rule of making an offer of between 5% to 10% off the asking price still apply?

We fell in love with a house at the peak of the crazy buying last year. It was on at Offers Over or OIRO (can't remember which) £650k. We adored it but the figures didn't really add up for us. There had been the same floorplan house on the same estate sell just a couple of months earlier for £580k and the market hadn't jumped to that extent. However, we said we would offer at £650k because we loved it so much. The estate agent said the vendor was looking for £675k. I thought this was a massive jump for something that was advertised at £650 to then say you wanted £25k more. Really it wasted everyone's time because we just couldn't meet the £675k and wouldn't have looked had we known that.

As it turns out, as beautiful as the house was, they didn't get a buyer then after a few months so most people must have thought the same thing. It's recently appeared on the market again at £695k.

Ultimately, stick to what you believe it's worth - especially if you only have a small deposit.

Wow those vendors need a serious reality check. I don't understand why people put there houses up for sale if they don't actually want to sell them, or they're so inflexible about time frames etc. I guess this is due to how the market was.

A classic example of greed trumping common sense.

an estate agent wouldn't even let me see a property as I hadn't got 15% over OIEO to negotiate with (based purely on a DIP and my 45% deposit). This was over a year ago and it's still on the market now. What a waste of time for everyone. 

Sarah1Mitty2

comeandgo said:

You offer what it’s worth to you, if it’s too low you will be told and you have lost nothing.  As a first time buyer do you have a large deposit so you can make up the difference between mortgage value and what you offer?

Probably not a good idea to be doing this now.

1616six

We were in this boat a couple of months ago..


FTB with a budget of £220k 

In our area (Norfolk) there’s not much to pick from in that budget - flats, tiny houses or a few bungalows that have clearly been owned by an elderly person who has died and haven’t been decorated in 40 years, often no central heating etc. 

We found a 2 bed semi in a nice area, been refurbished in the last 4 or so years, corner/bend plot so nice garden, garage, driveway etc 

Advertised for OIEO £210k. To me it seemed really cheap - our friends paid £200k for a bungalow 5 doors down that was as I described earlier.. they’ve had to gut it. I had no idea whether OIEO meant they’re expecting £211k or £250k.. I also hadn’t found this useful forum back then! 

 

We were going to offer £215k but when we went in to the agent, they said there were already 2 offers in. We knew our budget was £220k max and at the end of the day, if we’d called the agents bluff on there not being other offers and then lost out.. I’d be swearing at myself as there’s nothing remotely as nice around here.

We offered 220k and heard nothing for 3 days, then got a call to say it had been accepted.

Saying that, this was 2nd July and the vendors still haven’t found a property so we are tempted to start looking again now! 

Good luck with your purchase!