You may remember our guide a while back that explained the meaning of SOLD STC. It’s one of those terms you see but sometimes may not understand. Much the same could be said about “offers in excess of”, sometimes seen as OIEO.
It is often shown on property listings for an online estate agent or perhaps in the window of high street vendors.
Simply put, it means the price shown, is an acceptable minimum. A price from which offers must start. Nothing under it is likely to be accepted but bids over this amount could keep rising. Making a tidy profit for the seller.
Why is a property advertised with offers in excess of
There can be a few reasons for this. Sometimes the estate agent sees that the better potential for a sale is in offering “Offers in excess of.” Meaning that although the price may be advertised lower than what the homeowner wanted, the potentially higher number of interested parties may bring offers closer to the preferred value.
Sometimes the property for sale might be in an area with vastly differing property values. Or it has received such a make-over that the estate agent cannot pin an accurate price representative of the location of it.
Other times it could be that selling a house at auction is how both the estate agent and owner have decided to go. Marketing the house at a lower price than the valuation would suggest. The hope being here that a bidding war erupts and leads to a higher price being paid. On the other hand, for the buyer, it could be an opportunity to snap up a property bargain.
Can I offer under the offers in excess amount?
You could, although it is likely to be declined. If though, the property has been on the market for some time, there is no harm in offering a lesser amount just to test the water. It may even be that the OIEO price is way above other properties in the area. Therefore, a lower bid may be accepted as it may be the only option left for the seller to take.
According to some industry experts, 85% of homes end up selling for less than the asking price, so it wouldn’t harm to ask!
If you do decide to offer under the OIEO amount, you need to push home why your bid would be the best option. Perhaps the guarantee that you can finance the move instantly could influence them. Often, a seller will look to sell their property for more than the actual market price. Therefore, there is no problem offering less than the OIEO amount. It may still be above the original value.
What is the difference between asking price and offer in excess of?
There is a difference – you just may not notice it yet. The asking price is the amount the person selling wishes to get for the property. Offer in excess of simply refers to the value the owner believes the property to be worth.
How much should I offer on an OIEO house?
You should always offer what you believe it to be worth. All offers must be forwarded to the vendor – meaning you have just as much chance as the next person. Whether you feel that you should offer above, below, or bang on the OIEO, it is down to the owner to weigh up the options.
Is it a good idea to sell my house with offers in excess of?
It varies – some say you shouldn’t as it may have you overpricing your house. This could lead to little or no interest. Others see it as a great way to perhaps offer your house at a lower price. You could then see a higher number of interested people driving the price above what you expected to get.
It could also lead to a quicker sale. with the parties looking at your property making enticing offers to blitz others. Offers you may feel too good to turn down.
What else does offers in excess of mean?
There are some other terms that you may have seen when considering a house sale or purchase and ensuring you have the correct one attached to your property is key. To avoid confusion, they are not the same as OIEO but may sometimes be thought of as similar.
Price on application
When a house is thought to be very expensive, it may have POA attached to it. It would normally be used for an exclusive property or one that bucks the trend of others in the area. To find the price on these types of property, you would contact the estate agent to register your interest. They will then provide you with the price.
Offers invited means allowing people to pick a price. Strange to think that this could really be a thing in the world of sales! It happens though and tends to be when the property is too difficult to value. Interested parties are invited to submit an offer. If most offers are around the same figure, it gives the estate agent a view of what people may pay. They will then liaise with the seller to take the next steps.
At SOLD, we offer an instant valuation giving you the best possible price for your home. This allows you to decide whether going for the market value works for you, or whether you should consider offers in excess of a different figure.
Whatever you decide, our dedicated team of experts will be selling your house quickly. Contact us today to see how we can get your property SOLD!