Offers over versus Guide price

AskAsk

RHemmings said:

Just a data point in the 'other direction' from my perhaps cynical view of 'offers over'. In looking around for other information, I found this property:

https://www.zoopla.co.uk/property/uprn/2465044657/

It was listed as 'offers over' £260k, and it sold approximately four months later for £274k. While it has an ensuite 4th bedroom loft conversion (presumably), I think that for a terraced house that £274k is a good price for the seller. Seems like someone had a good result, in my eyes. For it to sell for £14k over the 'offers over' figure, I would wildly guess that there was a bidding war. 

this is the stragegy for the "offers over £500k" as he advises that we put the house on lower than what we expect, with "offers over" and get a bidding war going.  The property would be attractive at £500k so I do think it will get more than that as the EA says it will easily sell at £500k, but we should try to get more as he thinks that is far too cheap at £500k.  You have to take EA talk with a pinch of salt, but I have been valuing the house myself from nearby properties and I think the £500k - £525k is the right pitch.

i have sold a few properties in the past and i have never had much of a bidding war.  i don't think in this market, there is going to be much bidding war going on, so i think we should just ask for what we want and take offers below.

RHemmings

AskAsk said:

RHemmings said:

Just a data point in the 'other direction' from my perhaps cynical view of 'offers over'. In looking around for other information, I found this property:

https://www.zoopla.co.uk/property/uprn/2465044657/

It was listed as 'offers over' £260k, and it sold approximately four months later for £274k. While it has an ensuite 4th bedroom loft conversion (presumably), I think that for a terraced house that £274k is a good price for the seller. Seems like someone had a good result, in my eyes. For it to sell for £14k over the 'offers over' figure, I would wildly guess that there was a bidding war. 

this is the stragegy for the "offers over £500k" as he advises that we put the house on lower than what we expect, with "offers over" and get a bidding war going.  The property would be attractive at £500k so I do think it will get more than that as the EA says it will easily sell at £500k, but we should try to get more as he thinks that is far too cheap at £500k.  You have to take EA talk with a pinch of salt, but I have been valuing the house myself from nearby properties and I think the £500k - £525k is the right pitch.

i have sold a few properties in the past and i have never had much of a bidding war.  i don't think in this market, there is going to be much bidding war going on, so i think we should just ask for what we want and take offers below.

I agree that in this market a bidding war is unlikely unless the property is significantly underpriced. Note: unlikely, not impossible> While I saw that example of 'offers over' and a price over the 'offers over' amount, there are many examples where the sold price was less than the 'offers over' asking price. 

Hoenir

We always browse Rightmove by including the band above our personal budget ceiling. If the "dream property" came long we'd spend a little bit more. In our instance the garden is a major factor along with the location. 

Millsandovis

Depends on the area. I’m selling at the moment about 5 minutes from you and my property is marketed at OIEO £x50,000 due to going with the low asking price strat. I was worried I would only get offered 10k over as the interest has been so high but have been assured the agents marketing it usually get between 5-15% over asking price due to the area i’m selling in. Remains to be seen if that will be the case once sealed bids are opened on Tuesday but fingers crossed. 

Compare that to the area I’m buying in and I offered 15k below asking price to start with as it had been on the market for a year.

 I would go with the person who is saying they would market the property at a lower end to generate interest. People have their parameters set at 600 rather than 650 etc so you could miss out on people willing to spend 630/640. If people fall in love with the property then they’ll borrow more. Another tip I was told was to try and do an open day rather than single viewings. If interest is high also do block bookings so people get to see other people interested. You’d be amazed how it gets people wanting to offer. 

London is just a complete bubble when it comes to property and it definitely isn’t a falling market at the moment. Bidding wars are 100% possible still 

AskAsk

Hoenir said:

We always browse Rightmove by including the band above our personal budget ceiling. If the "dream property" came long we'd spend a little bit more. In our instance the garden is a major factor along with the location. 

good point.  people who can afford more will also look at the higher bracket in case there is a dream home and they think they can negotiate it down, so i don't think it will miss people who can afford more than £500k.

the two EA have different strageties.  One says put it up cheap and pull the punters in and bid the price up, the second one says put it at £525k guide price and get people who are interested around that bracket, which is still enough to sell the property.

AskAsk

Millsandovis said:

Depends on the area. I’m selling at the moment about 5 minutes from you and my property is marketed at OIEO £x50,000 due to going with the low asking price strat. I was worried I would only get offered 10k over as the interest has been so high but have been assured the agents marketing it usually get between 5-15% over asking price due to the area i’m selling in. Remains to be seen if that will be the case once sealed bids are opened on Tuesday but fingers crossed. 

Compare that to the area I’m buying in and I offered 15k below asking price to start with as it had been on the market for a year.

 I would go with the person who is saying they would market the property at a lower end to generate interest. People have their parameters set at 600 rather than 650 etc so you could miss out on people willing to spend 630/640. If people fall in love with the property then they’ll borrow more. Another tip I was told was to try and do an open day rather than single viewings. If interest is high also do block bookings so people get to see other people interested. You’d be amazed how it gets people wanting to offer. 

London is just a complete bubble when it comes to property and it definitely isn’t a falling market at the moment. Bidding wars are 100% possible still 

that is interesting.  this property is in a location that is desirable.  there is no other property on the market at this price in the area.  we are therefore competing with properties for £585k - £600k mark, but they are done up well and our property needs TLC, hence the low price as it needs a bit of work.  But as it is a desirable area and it is aimed at the lower bracket, it will be attractive to people who can't afford to buy an expensive house but is good with DIY or can wait until later to do the house up a bit.

It is fine, just a little bit dated.  Essentially it needs a new kitchen but the existing kitchen is fine.  So at £525k, it would be attractive.  Therefore the first agent thinks it will get a lot of people interested and so it will be bid up.

Such a difficult decision to make.  Let us know what bids you get on Tuesday.  I am surprised you haven't been told any of the offers yet?

Millsandovis

AskAsk said:

Millsandovis said:

Depends on the area. I’m selling at the moment about 5 minutes from you and my property is marketed at OIEO £x50,000 due to going with the low asking price strat. I was worried I would only get offered 10k over as the interest has been so high but have been assured the agents marketing it usually get between 5-15% over asking price due to the area i’m selling in. Remains to be seen if that will be the case once sealed bids are opened on Tuesday but fingers crossed. 

Compare that to the area I’m buying in and I offered 15k below asking price to start with as it had been on the market for a year.

 I would go with the person who is saying they would market the property at a lower end to generate interest. People have their parameters set at 600 rather than 650 etc so you could miss out on people willing to spend 630/640. If people fall in love with the property then they’ll borrow more. Another tip I was told was to try and do an open day rather than single viewings. If interest is high also do block bookings so people get to see other people interested. You’d be amazed how it gets people wanting to offer. 

London is just a complete bubble when it comes to property and it definitely isn’t a falling market at the moment. Bidding wars are 100% possible still 

that is interesting.  this property is in a location that is desirable.  there is no other property on the market at this price in the area.  we are therefore competing with properties for £585k - £600k mark, but they are done up well and our property needs TLC, hence the low price as it needs a bit of work.  But as it is a desirable area and it is aimed at the lower bracket, it will be attractive to people who can't afford to buy an expensive house but is good with DIY or can wait until later to do the house up a bit.

It is fine, just a little bit dated.  Essentially it needs a new kitchen but the existing kitchen is fine.  So at £525k, it would be attractive.  Therefore the first agent thinks it will get a lot of people interested and so it will be bid up.

Such a difficult decision to make.  Let us know what bids you get on Tuesday.  I am surprised you haven't been told any of the offers yet?

Yeah I will definitely get back to you tomorrow with the outcome. I too was a bit worried about getting top price as it seems massively undervalued compared to the amount of interest. Then a house came on the market on my street that is 400sq foot smaller and needs more work but is priced at 50k over my OIEO starting price. This made me really wary so I spoke to the agent doing the open house and although she said she couldn’t tell me specifics she mentioned the 5-15% amount so hopefully the negotiator uses that with buyers too. 

It does seem like a bit of a closed shop scenario in regards to knowing bids and I think ultimately if I knew then what I know now I wouldn’t have done it this way in regards to letting them just run with it and doing it their way. But that’s just me being a natural pessimist and thinking the worst! If I get 10% over asking tomorrow I will be very pleased and be glad I trusted them! 

For what it’s worth. a smaller house went on the market around the corner from me next to relatives and that needed a hell of a lot of work and modernisation and that went for my asking price. I don’t think you’ll struggle to get 550k if the interest is there. Keep an eye on how quickly houses are selling in the area if you can, also go with a local agent that has a bank of clients ready to make offers on properties they need. 

AskAsk

Millsandovis said:

AskAsk said:

Millsandovis said:

Depends on the area. I’m selling at the moment about 5 minutes from you and my property is marketed at OIEO £x50,000 due to going with the low asking price strat. I was worried I would only get offered 10k over as the interest has been so high but have been assured the agents marketing it usually get between 5-15% over asking price due to the area i’m selling in. Remains to be seen if that will be the case once sealed bids are opened on Tuesday but fingers crossed. 

Compare that to the area I’m buying in and I offered 15k below asking price to start with as it had been on the market for a year.

 I would go with the person who is saying they would market the property at a lower end to generate interest. People have their parameters set at 600 rather than 650 etc so you could miss out on people willing to spend 630/640. If people fall in love with the property then they’ll borrow more. Another tip I was told was to try and do an open day rather than single viewings. If interest is high also do block bookings so people get to see other people interested. You’d be amazed how it gets people wanting to offer. 

London is just a complete bubble when it comes to property and it definitely isn’t a falling market at the moment. Bidding wars are 100% possible still 

that is interesting.  this property is in a location that is desirable.  there is no other property on the market at this price in the area.  we are therefore competing with properties for £585k - £600k mark, but they are done up well and our property needs TLC, hence the low price as it needs a bit of work.  But as it is a desirable area and it is aimed at the lower bracket, it will be attractive to people who can't afford to buy an expensive house but is good with DIY or can wait until later to do the house up a bit.

It is fine, just a little bit dated.  Essentially it needs a new kitchen but the existing kitchen is fine.  So at £525k, it would be attractive.  Therefore the first agent thinks it will get a lot of people interested and so it will be bid up.

Such a difficult decision to make.  Let us know what bids you get on Tuesday.  I am surprised you haven't been told any of the offers yet?

Yeah I will definitely get back to you tomorrow with the outcome. I too was a bit worried about getting top price as it seems massively undervalued compared to the amount of interest. Then a house came on the market on my street that is 400sq foot smaller and needs more work but is priced at 50k over my OIEO starting price. This made me really wary so I spoke to the agent doing the open house and although she said she couldn’t tell me specifics she mentioned the 5-15% amount so hopefully the negotiator uses that with buyers too. 

It does seem like a bit of a closed shop scenario in regards to knowing bids and I think ultimately if I knew then what I know now I wouldn’t have done it this way in regards to letting them just run with it and doing it their way. But that’s just me being a natural pessimist and thinking the worst! If I get 10% over asking tomorrow I will be very pleased and be glad I trusted them! 

For what it’s worth. a smaller house went on the market around the corner from me next to relatives and that needed a hell of a lot of work and modernisation and that went for my asking price. I don’t think you’ll struggle to get 550k if the interest is there. Keep an eye on how quickly houses are selling in the area if you can, also go with a local agent that has a bank of clients ready to make offers on properties they need. 

when we bought this house, we were told there was going to be a final sealed bid.  we thought this is a marketing stragety but we played along and incresed our bid a little bit to keep them happy and just in case there was someone else actually interested.

so you have agreed to accept the final sealed bid without knowing what the outcome will be???  what if it is less than your expected price and the EA is just stringing you along?

Millsandovis

AskAsk said:

Millsandovis said:

AskAsk said:

Millsandovis said:

Depends on the area. I’m selling at the moment about 5 minutes from you and my property is marketed at OIEO £x50,000 due to going with the low asking price strat. I was worried I would only get offered 10k over as the interest has been so high but have been assured the agents marketing it usually get between 5-15% over asking price due to the area i’m selling in. Remains to be seen if that will be the case once sealed bids are opened on Tuesday but fingers crossed. 

Compare that to the area I’m buying in and I offered 15k below asking price to start with as it had been on the market for a year.

 I would go with the person who is saying they would market the property at a lower end to generate interest. People have their parameters set at 600 rather than 650 etc so you could miss out on people willing to spend 630/640. If people fall in love with the property then they’ll borrow more. Another tip I was told was to try and do an open day rather than single viewings. If interest is high also do block bookings so people get to see other people interested. You’d be amazed how it gets people wanting to offer. 

London is just a complete bubble when it comes to property and it definitely isn’t a falling market at the moment. Bidding wars are 100% possible still 

that is interesting.  this property is in a location that is desirable.  there is no other property on the market at this price in the area.  we are therefore competing with properties for £585k - £600k mark, but they are done up well and our property needs TLC, hence the low price as it needs a bit of work.  But as it is a desirable area and it is aimed at the lower bracket, it will be attractive to people who can't afford to buy an expensive house but is good with DIY or can wait until later to do the house up a bit.

It is fine, just a little bit dated.  Essentially it needs a new kitchen but the existing kitchen is fine.  So at £525k, it would be attractive.  Therefore the first agent thinks it will get a lot of people interested and so it will be bid up.

Such a difficult decision to make.  Let us know what bids you get on Tuesday.  I am surprised you haven't been told any of the offers yet?

Yeah I will definitely get back to you tomorrow with the outcome. I too was a bit worried about getting top price as it seems massively undervalued compared to the amount of interest. Then a house came on the market on my street that is 400sq foot smaller and needs more work but is priced at 50k over my OIEO starting price. This made me really wary so I spoke to the agent doing the open house and although she said she couldn’t tell me specifics she mentioned the 5-15% amount so hopefully the negotiator uses that with buyers too. 

It does seem like a bit of a closed shop scenario in regards to knowing bids and I think ultimately if I knew then what I know now I wouldn’t have done it this way in regards to letting them just run with it and doing it their way. But that’s just me being a natural pessimist and thinking the worst! If I get 10% over asking tomorrow I will be very pleased and be glad I trusted them! 

For what it’s worth. a smaller house went on the market around the corner from me next to relatives and that needed a hell of a lot of work and modernisation and that went for my asking price. I don’t think you’ll struggle to get 550k if the interest is there. Keep an eye on how quickly houses are selling in the area if you can, also go with a local agent that has a bank of clients ready to make offers on properties they need. 

when we bought this house, we were told there was going to be a final sealed bid.  we thought this is a marketing stragety but we played along and incresed our bid a little bit to keep them happy and just in case there was someone else actually interested.

so you have agreed to accept the final sealed bid without knowing what the outcome will be???  what if it is less than your expected price and the EA is just stringing you along?

I’ve said to them I’m not just going to sell
to the highest bidder. It’s my family home that I grew up in and I’m in a fortunate position that the house I’ve had an offer accepted on is a lot less! Also I need a quicker process so won’t be selling to people who haven’t got their house on the market yet. Ideally it will be a FTB or cash and they’re ready to go. 

A neighbour also let me know about some derogatory comments he heard from some people viewing which I later confirmed via Ring doorbell so would hate it if it was sealed bids and I had to sell to them! (if they made an offer!)

if all goes to plan tomorrow I’m happy to recommend the estate agents I went with as even though they haven’t been perfect throughout, they are the best in terms of getting the right people with the right amount of money through the door as opposed to say Yopa or your national companies. 

AskAsk

Millsandovis said:

AskAsk said:

Millsandovis said:

AskAsk said:

Millsandovis said:

Depends on the area. I’m selling at the moment about 5 minutes from you and my property is marketed at OIEO £x50,000 due to going with the low asking price strat. I was worried I would only get offered 10k over as the interest has been so high but have been assured the agents marketing it usually get between 5-15% over asking price due to the area i’m selling in. Remains to be seen if that will be the case once sealed bids are opened on Tuesday but fingers crossed. 

Compare that to the area I’m buying in and I offered 15k below asking price to start with as it had been on the market for a year.

 I would go with the person who is saying they would market the property at a lower end to generate interest. People have their parameters set at 600 rather than 650 etc so you could miss out on people willing to spend 630/640. If people fall in love with the property then they’ll borrow more. Another tip I was told was to try and do an open day rather than single viewings. If interest is high also do block bookings so people get to see other people interested. You’d be amazed how it gets people wanting to offer. 

London is just a complete bubble when it comes to property and it definitely isn’t a falling market at the moment. Bidding wars are 100% possible still 

that is interesting.  this property is in a location that is desirable.  there is no other property on the market at this price in the area.  we are therefore competing with properties for £585k - £600k mark, but they are done up well and our property needs TLC, hence the low price as it needs a bit of work.  But as it is a desirable area and it is aimed at the lower bracket, it will be attractive to people who can't afford to buy an expensive house but is good with DIY or can wait until later to do the house up a bit.

It is fine, just a little bit dated.  Essentially it needs a new kitchen but the existing kitchen is fine.  So at £525k, it would be attractive.  Therefore the first agent thinks it will get a lot of people interested and so it will be bid up.

Such a difficult decision to make.  Let us know what bids you get on Tuesday.  I am surprised you haven't been told any of the offers yet?

Yeah I will definitely get back to you tomorrow with the outcome. I too was a bit worried about getting top price as it seems massively undervalued compared to the amount of interest. Then a house came on the market on my street that is 400sq foot smaller and needs more work but is priced at 50k over my OIEO starting price. This made me really wary so I spoke to the agent doing the open house and although she said she couldn’t tell me specifics she mentioned the 5-15% amount so hopefully the negotiator uses that with buyers too. 

It does seem like a bit of a closed shop scenario in regards to knowing bids and I think ultimately if I knew then what I know now I wouldn’t have done it this way in regards to letting them just run with it and doing it their way. But that’s just me being a natural pessimist and thinking the worst! If I get 10% over asking tomorrow I will be very pleased and be glad I trusted them! 

For what it’s worth. a smaller house went on the market around the corner from me next to relatives and that needed a hell of a lot of work and modernisation and that went for my asking price. I don’t think you’ll struggle to get 550k if the interest is there. Keep an eye on how quickly houses are selling in the area if you can, also go with a local agent that has a bank of clients ready to make offers on properties they need. 

when we bought this house, we were told there was going to be a final sealed bid.  we thought this is a marketing stragety but we played along and incresed our bid a little bit to keep them happy and just in case there was someone else actually interested.

so you have agreed to accept the final sealed bid without knowing what the outcome will be???  what if it is less than your expected price and the EA is just stringing you along?

I’ve said to them I’m not just going to sell
to the highest bidder. It’s my family home that I grew up in and I’m in a fortunate position that the house I’ve had an offer accepted on is a lot less! Also I need a quicker process so won’t be selling to people who haven’t got their house on the market yet. Ideally it will be a FTB or cash and they’re ready to go. 

A neighbour also let me know about some derogatory comments he heard from some people viewing which I later confirmed via Ring doorbell so would hate it if it was sealed bids and I had to sell to them! (if they made an offer!)

if all goes to plan tomorrow I’m happy to recommend the estate agents I went with as even though they haven’t been perfect throughout, they are the best in terms of getting the right people with the right amount of money through the door as opposed to say Yopa or your national companies. 

yeah, i don't always sell to the highest bidder.  I make a decision based on other factors as well

1.  how quickly can they complete the purchase
2.  are they the sort of people who are serious buyers, or are they the sort that offers high then drop the price later on in the process, months down the line, when you have wasted a lot of time already
3.  are they the sort of people that I want to do business with
4.  how are they going to fund the purchase, have they got a lot of cash

it isn't always easy to get the answers to these questions as i haven't met the buyers, but the hightest bid will of course be the best price, but not if there is a more dependable price a little bit below.  when i get offers in, i always ask the agent the back ground of the buyer before i will agree to accept any offers.

i will sell a property to a lower offer if i think that person is a better bet and someone i would prefer to deal with.