Offers over vs. Guide Price
Discussion
What's the thinking on listing a house as offers over £1,400,000 rather than a guide price of £1,500,000?
There's a coastal house right on the beach in Lyme Regis, it's not something we're even remotely considering as we can't afford it, but we are keeping a careful eye on lots of coastal properties.
It popped up on Rightmove about 2 - 3 months ago with a guide price of £1,500,000 and then yesterday it popped up again as offers over £1,400,000. If no one bought it at £1.5million - maybe offering £1.45million, then they're not going to buy it at £1.4million plus a bit more - e.g. £50,000.
Am I missing something here?
There's a coastal house right on the beach in Lyme Regis, it's not something we're even remotely considering as we can't afford it, but we are keeping a careful eye on lots of coastal properties.
It popped up on Rightmove about 2 - 3 months ago with a guide price of £1,500,000 and then yesterday it popped up again as offers over £1,400,000. If no one bought it at £1.5million - maybe offering £1.45million, then they're not going to buy it at £1.4million plus a bit more - e.g. £50,000.
Am I missing something here?
You are really buying the position not the house there. But there was a large landslip just down the road earlier in the year so that won't help anything. It's very steep. The Hix restaurant has closed and been replaced. Whatever you think of him it was a draw.
You are out of holiday let price there (mostly) so I tend to find that whilst small houses (2 bed - 2 in Eype sold for 450 and 550) sell very well (maybe less so with the council tax thing) 7 figure houses aren't as affected by the coastal thing in quite the same way except for a few places.
A house sold in Seatown for 2mill fairly quickly but it was a much better house. That really is all the money for a 1300sq ft house so it could be there a while.
You are out of holiday let price there (mostly) so I tend to find that whilst small houses (2 bed - 2 in Eype sold for 450 and 550) sell very well (maybe less so with the council tax thing) 7 figure houses aren't as affected by the coastal thing in quite the same way except for a few places.
A house sold in Seatown for 2mill fairly quickly but it was a much better house. That really is all the money for a 1300sq ft house so it could be there a while.
Quite often a estate agent will over value the house to get the instruction they then start to walk the vendor back as it becomes clear they are out of step with the market, same with those that offer a private unlisted sale "we've got buyer lined up for this" after while it's put on the market.
The key is to get the instruction especially in a quiet market and then try and work it from there.
omniflow said:
What's the thinking on listing a house as offers over £1,400,000 rather than a guide price of £1,500,000?
There's a coastal house right on the beach in Lyme Regis, it's not something we're even remotely considering as we can't afford it, but we are keeping a careful eye on lots of coastal properties.
It popped up on Rightmove about 2 - 3 months ago with a guide price of £1,500,000 and then yesterday it popped up again as offers over £1,400,000. If no one bought it at £1.5million - maybe offering £1.45million, then they're not going to buy it at £1.4million plus a bit more - e.g. £50,000.
Am I missing something here?
I'm struggling to imagine this happens at higher price levels, but at more ordinary prices, an EA told me people won't look at properties listed above their budget There's a coastal house right on the beach in Lyme Regis, it's not something we're even remotely considering as we can't afford it, but we are keeping a careful eye on lots of coastal properties.
It popped up on Rightmove about 2 - 3 months ago with a guide price of £1,500,000 and then yesterday it popped up again as offers over £1,400,000. If no one bought it at £1.5million - maybe offering £1.45million, then they're not going to buy it at £1.4million plus a bit more - e.g. £50,000.
Am I missing something here?
There's also the matter of trying to hit search price ranges - ie OIEO of £300K catches people who have £300K as their lower limit and same for people who have it as their max.
omniflow said:
What's the thinking on listing a house as offers over £1,400,000 rather than a guide price of £1,500,000?
It’s nothing but a game to extract the most money from potential buyers, with estate agents and sellers pulling in different directions at different times. Think they just try to make the price look more palatable to get people through the door and then drive offers up by creating a sense of competition.I’ve been watching the market pretty closely in my area and know of a decent local agent that seems to get big premiums over asking, such as more than £750k for a house advertised at ‘offers over £675k’ (they received 14 offers from the one open day, apparently!) and another at ‘offers over £600k’ that sold for more than £650k.
Both of these sold the Wednesday after a Saturday open day. Another one with a different agent was advertised at £625k (think it was more than this initially), they refused an offer of £615k, pushing for £620k and then a few weeks later reduced the price to £600k.
Yet another agent showed people around a house advertised at £700k on the Saturday and lowered the price by £50k on the Monday before even going back to the people who viewed on the Saturday…
To be honest, I don’t think most agents have any idea what they’re doing!
Although the agent is trying to create a price floor by stating “offers over”, there’s still nothing stopping someone offering below that figure.
If somewhere has been listed for £1.5 and not sold, it wouldn’t be beyond the realms of possibility that the agent were trying to get some improvement on (perhaps rejected) offers well below the new “offers over” figure.
If somewhere has been listed for £1.5 and not sold, it wouldn’t be beyond the realms of possibility that the agent were trying to get some improvement on (perhaps rejected) offers well below the new “offers over” figure.
A) The agent has told them it's worth 1.5, they've got that figure in their head. To soften the blow of lowering the price cos no one is interested they say 'we'll put it at offers over' as if it's going to magically create a bidding war. They might have even had an offer at 1.4 that they rejected, now the buyer has moved on
B) They genuinely won't accept anything below 1.4 and might even reject 1.4
Most likely A
B) They genuinely won't accept anything below 1.4 and might even reject 1.4
Most likely A
I was chatting to our agent about this.
He tells people in the current market they need to get out and look at houses, even if they are noticeably over budget.
But buyers are very reluctant to even look at houses which seem to be out of reach.
If you will take say 500k for your house, many people who can afford 500k probably won't even see it on RM if you put it up at 550.
The 'offers over' bidding war mentality seems to have become baked into the market.
The thought processes of house buyers is not a trivial subject!
The rules of the game are unwritten and ever-changing.
He tells people in the current market they need to get out and look at houses, even if they are noticeably over budget.
But buyers are very reluctant to even look at houses which seem to be out of reach.
If you will take say 500k for your house, many people who can afford 500k probably won't even see it on RM if you put it up at 550.
The 'offers over' bidding war mentality seems to have become baked into the market.
The thought processes of house buyers is not a trivial subject!
The rules of the game are unwritten and ever-changing.
SEDon said:
A) The agent has told them it's worth 1.5, they've got that figure in their head. To soften the blow of lowering the price cos no one is interested they say 'we'll put it at offers over' as if it's going to magically create a bidding war. They might have even had an offer at 1.4 that they rejected, now the buyer has moved on.
A quick Rightmove search on map view would suggest that they may struggle to achieve over £1M.RoVoFob said:
omniflow said:
What's the thinking on listing a house as offers over £1,400,000 rather than a guide price of £1,500,000?
It s nothing but a game to extract the most money from potential buyers, with estate agents and sellers pulling in different directions at different times. Think they just try to make the price look more palatable to get people through the door and then drive offers up by creating a sense of competition.I ve been watching the market pretty closely in my area and know of a decent local agent that seems to get big premiums over asking, such as more than £750k for a house advertised at offers over £675k (they received 14 offers from the one open day, apparently!) and another at offers over £600k that sold for more than £650k.
Both of these sold the Wednesday after a Saturday open day. Another one with a different agent was advertised at £625k (think it was more than this initially), they refused an offer of £615k, pushing for £620k and then a few weeks later reduced the price to £600k.
Yet another agent showed people around a house advertised at £700k on the Saturday and lowered the price by £50k on the Monday before even going back to the people who viewed on the Saturday
To be honest, I don t think most agents have any idea what they re doing!
Appreciate the market will vary, but it mostly seems to be pretty flat now. Our area has gone from pretty well nothing available to now my daily Rightmove notification is 75% a list of reductions.
Our OIEO experience- selling late FILs place - was weird as everyone bid exactly the OIEO price.
Sheepshanks said:
RoVoFob said:
omniflow said:
What's the thinking on listing a house as offers over £1,400,000 rather than a guide price of £1,500,000?
It s nothing but a game to extract the most money from potential buyers, with estate agents and sellers pulling in different directions at different times. Think they just try to make the price look more palatable to get people through the door and then drive offers up by creating a sense of competition.I ve been watching the market pretty closely in my area and know of a decent local agent that seems to get big premiums over asking, such as more than £750k for a house advertised at offers over £675k (they received 14 offers from the one open day, apparently!) and another at offers over £600k that sold for more than £650k.
Both of these sold the Wednesday after a Saturday open day. Another one with a different agent was advertised at £625k (think it was more than this initially), they refused an offer of £615k, pushing for £620k and then a few weeks later reduced the price to £600k.
Yet another agent showed people around a house advertised at £700k on the Saturday and lowered the price by £50k on the Monday before even going back to the people who viewed on the Saturday
To be honest, I don t think most agents have any idea what they re doing!
Appreciate the market will vary, but it mostly seems to be pretty flat now. Our area has gone from pretty well nothing available to now my daily Rightmove notification is 75% a list of reductions.
Our OIEO experience- selling late FILs place - was weird as everyone bid exactly the OIEO price.
You've got to be a special kind of special to turn down an offer of £615K when you're asking £625K
TA14 said:
A quick Rightmove search on map view would suggest that they may struggle to achieve over £1M.
The location is appealing for many. This went for over 1.6m. Bigger but no better conditionhttps://www.rightmove.co.uk/properties/121109594#/...
Sheepshanks said:
RoVoFob said:
omniflow said:
What's the thinking on listing a house as offers over £1,400,000 rather than a guide price of £1,500,000?
It s nothing but a game to extract the most money from potential buyers, with estate agents and sellers pulling in different directions at different times. Think they just try to make the price look more palatable to get people through the door and then drive offers up by creating a sense of competition.I ve been watching the market pretty closely in my area and know of a decent local agent that seems to get big premiums over asking, such as more than £750k for a house advertised at offers over £675k (they received 14 offers from the one open day, apparently!) and another at offers over £600k that sold for more than £650k.
Both of these sold the Wednesday after a Saturday open day. Another one with a different agent was advertised at £625k (think it was more than this initially), they refused an offer of £615k, pushing for £620k and then a few weeks later reduced the price to £600k.
Yet another agent showed people around a house advertised at £700k on the Saturday and lowered the price by £50k on the Monday before even going back to the people who viewed on the Saturday
To be honest, I don t think most agents have any idea what they re doing!
Appreciate the market will vary, but it mostly seems to be pretty flat now. Our area has gone from pretty well nothing available to now my daily Rightmove notification is 75% a list of reductions.
Our OIEO experience- selling late FILs place - was weird as everyone bid exactly the OIEO price.
The first house I ended up bumping into the vendors through mutual friends after they’d accepted an offer, who were talking about the level of bidding they had on their house (including me!), so that was just a coincidence. The agent the first two houses were with has been great as a potential buyer - I’ve told them what I wanted and given feedback from viewings and they’ve shared accepted offers and a few other bits. Has been mutually beneficial.
Second agent and seller were clueless. Seller wanted a high price and both he and agent don’t realise that their crap advert with poor photos, floorplans and little general info was never going to get top dollar. Even when lowering the price they haven’t bothered to update the photos. I was toying with that house…if the price were right. But it wasn’t and neither the agent nor the seller drew me in to get to a deal.
Think the market has cooled a bit over the last few weeks. Maybe it’s seasonal, but feels like a bit of a slowdown. Sure the best stuff is still selling quickly for high prices, but maybe not as manic as it was a month or two back…
omniflow said:
I would be interested also.
You've got to be a special kind of special to turn down an offer of £615K when you're asking £625K
They’d had previous offers of £640k (from someone who sounded like a complete time waster) and another at more than £625k, so they thought they didn’t have to lower the price. They also had sitting tenants on a rolling monthly contract, so thought they held all the cards…You've got to be a special kind of special to turn down an offer of £615K when you're asking £625K
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