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'OIEO' - Ignore? Is it a sign a seller believes their house to be worth more than it truly is?

danieljm
danieljm Posts: 37
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edited 27 November 2023 at 7:39AM in House buying, renting & selling
I hate these OIEO listings. We've been looking at houses recently. We have a viewing coming up on Tuesday on one place which really fits out expectations.

My only reservation is that they have it listed for 'OIEO 190k. From researching similar properties, a larger one on the same street sold at 180k in April gone, and another - an identical plot in tidy condition - sold for 180k in Apr 22, when the market was less stagnant and before interest rates climbed sharply.

They seem to be selling it on the fact that it has been renovated over time since 2015, had electric works and that it has 'new' windows and doors (it doesn't) when it reality they've really been in place since 2020 or before as per street view so what other truths are they bending?

With the likes of aforementioned in mind, am I being unreasonable to go and tell them 180k-ish on such a property, pointing out exactly why?

Any advice for OIEO?


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Comments

  • Flugelhorn
    Flugelhorn Posts: 5,427
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    I always find OIEO funny - often found the viewings were done by the vendors (bad sign) who were convinced that their property was marvellous. Nothing to stop you offering whatever you like - they have probably been told by the agent that 180 is likely to be the mark
  • bouicca21
    bouicca21 Posts: 6,493
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    When I was buying back during the London bubble, it was a sign the EA had no idea how much higher the market would go.
  • I would take it as a sign that it's the minimum they would accept - possibly due to finances,remaining mortgage,new mortgage etc.

    Offer what you think its worth, but be prepared to be rejected if its under that number
  • I always find OIEO funny - often found the viewings were done by the vendors (bad sign) who were convinced that their property was marvellous. Nothing to stop you offering whatever you like - they have probably been told by the agent that 180 is likely to be the mark
    The last part of your comment being more or less what I'm thinking. Just from the description I can imagine the vendor banging on at the agent about how it should be sold 15k above market because they've spent 15k on it in the last few years.

    Yeah, if I like it then I'm going to lowball them and straight up say thay there really isn't anything special about the place compared to others.
  • RelievedSheff
    RelievedSheff Posts: 11,129
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    Offer what you think it is worth. OIEO, Offers in the region of, offers only, they are all just marketing blurb and have no real influence on the price that the property will achieve.
  • ThisIsWeird
    ThisIsWeird Posts: 4,458
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    edited 27 November 2023 at 6:30PM
    Hard to imagine that the EA suggested this approach in the current climate. 
    So I guess it's more likely it was prompted by the vendor, and there's at least two very obvious reasons as previously outlined above; the vendor does require that sum as a minimum, in which case you're likely stuffed if you want to get it for less. Or, the vendor has an inflated idea of the standard of their house, in which case reality should bite at some point.
    In essence, tho', you ignore it, and place your usual 'low' offer to the EA based on what you 'believe' it's actually worth, again based on the local market - the EA is duty-bound to forward it. Be totally honest; you like the house, you know it's in good order (tho' some aspects seem to have been glossed by the vendor), but there is no reason that you are aware of why it should be worth more - in a presumably stagnant or falling market - than the previously sold houses in the 'hood. "Could you explain, please?"
  • Flugelhorn
    Flugelhorn Posts: 5,427
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    edited 27 November 2023 at 8:25AM
    danieljm said:
    I always find OIEO funny - often found the viewings were done by the vendors (bad sign) who were convinced that their property was marvellous. Nothing to stop you offering whatever you like - they have probably been told by the agent that 180 is likely to be the mark
    The last part of your comment being more or less what I'm thinking. Just from the description I can imagine the vendor banging on at the agent about how it should be sold 15k above market because they've spent 15k on it in the last few years.

    Yeah, if I like it then I'm going to lowball them and straight up say thay there really isn't anything special about the place compared to others.
    When it comes to vendors (particularly of they think that their house is wonderful) it can be better to flatter them a bit - they may be reluctant to sell to someone who doesn't seem to appreciate how marvellous the place is - so better to praise it a bit first "really nice, good condition etc" then  "in current market, I feel £180 is my offer" and leave it at that - if the comeback is that X or Y cost £££ then it is just say that you don't feel it has added that much and in the current market your offer is £180

    I did it once and got £30K off - it was an OIEO and they really wanted that amount as had spent £££ 
  • I had previously listed a property with OIEO. My valuation was bordering within 2 right move price ranges and the lower price category was the most commonly searched price range in the area so I thought it would be a good way to test the market

    Lots of people ignored the OIEO.
  • Dustyevsky
    Dustyevsky Posts: 1,210
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    edited 27 November 2023 at 9:00AM
    Some houses are pretty much unique, and therefore the price someone is willing to pay has flexibility. Other houses, where it's easy to find comparables, don't ft that description. If you have others to compare with, use your own knowledge and judgement to offer what seems right in today's market and ignore OIEO, 'guide price,' and similar obfuscation.
    Honesty costs, so don't expect it from cheap people.
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