Offers in excess of: Does it put off buyers?
The property industry isn’t one to shy away from abbreviations – SSTC, BMV or OTO to name a few. It’s easy to see why buyers and sellers get confused.
So, what does OIEO mean? Is it the same as offers in excess of? And why would anyone market their property as this?
We’re going to answer these questions for you, as well as explaining why marketing your property as offers in excess of could be putting buyers off your property and what you can do if this is the case.
What does OIEO mean?
OIEO stands for offers in excess of and is accompanied by a price. This means that you as the seller are looking for offers over the price stated.
It’s not like a typical asking price, which people tend to offer under, because with offers in excess of you are stating to your buyer that you will strictly only accept offers that are above this price.
Generally speaking, when a house is marked as OIEO it can mean the seller isn’t willing to enter into negotiations and you must at least meet the price which is listed.
What’s the difference between offers over and offers in excess of?
There is actually no difference between these two expressions – they both mean you as the seller are expecting offers over the price and aren’t willing to consider any offers under the price specified.
Why would I mark my house OIEO?
There are a few reasons you may decide that it’s beneficial for you to market your property as offers in excess of.
You may want to mark your house as OIEO to make allowances for the cost of the estate agent fees and legal fees, as these can take a big chunk out of the sold price, potentially leaving you with lower than you first wanted.
By asking for offers in excess of the listed price, you’re increasing the chances that you will get close to the fee you want, once the fees have been taken away. It’s worth bearing in mind, though, that the higher the sold price, the higher the fees you will pay to your estate agent, as they take a set percentage of the price.
Another reason you may want to mark your property as offers in excess of is because you and the agent can’t agree on a price, with the agent potentially valuing it below what you feel the property is worth.
As a result of this, you can list the property at the price the agent has suggested but place OIEO next to it, to show buyers that you’re not willing to go any lower than that price and would in fact prefer a bid over this fee.
Why do estate agents say offers over?
Estate agents will have a different motive to marking your property as OIEO compared to you. Having said this, one reason which will be the same is to compromise with you if you’re unable to agree on an asking price.
You may feel the property is worth more than what the estate agent says, causing the estate agent to suggest listing your property at the price they suggested but adding ‘offers in excess of’ to please you and show they’re trying to get you a higher price for your property.
A different reason an estate agent may market your property as ‘offers in excess of’ is to encourage interest. Generally speaking, the price at which the property is listed will be below the market value, meaning it’s a very competitive price.
This makes buyers think the house is a good ‘deal’, causing a high amount of interest, which in turn helps the estate agent to look as though they’ve done a really good job at advertising your property.
A house may also be marketed as OIEO if it’s being marketed by an open house event or auction, as a way to encourage interest and bidding wars, making the listed price a good starting point.
A final reason an estate agent may market a property as ‘offers in excess of’ is simply because the property is hard to value. A property may be hard to value because it’s really unique and there are no comparable in terms of location or property type.
It may also be hard to value your property if it hasn’t been sold within the last 15 to 20 years, as the market has changed a lot over this time, making it hard for the estate agent to decide what the property is worth.
What is a normal offer on a house?
It’s hard to give an exact amount, as every buyer will have their own idea on what a ‘normal’ offer is. However, as a general rule of thumb, a normal offer from a buyer on the open market is around 5 to 10% below the asking price.
You may find that buyer’s offer even further below the asking price, with some up to 20% below even if they can afford more, as they know if their low offer isn’t accepted, they have room to move up.
Of course, what is considered ‘normal’ will also depend upon the situation – for example, if you’re wanting a super-fast sale, then it will be normal to receive an offer quite a bit below the asking price/market value.
Does ‘offers in excess of’ put off buyers?
In short, offers in excess of can put off buyers, as all buyers have a budget and tend to look at properties with an asking price around that budget, as offers that are accepted tend to be below the asking price.
With OIEO, you’re stating that you will not accept an offer unless it’s above the price listed, meaning a buyer will want to look elsewhere.
If you’re listing your property as offers in excess of because you’re aware that you will have lots of fees to pay, such as estate agent or legal fees, and you want to make allowances for the big chunk this will take out of the sale price, we have another selling method for you, which will allow you to avoid all fees and get the full price for your property…
Sell to us!
Here at The Property Buying Company, we’re a cash buyer of houses, buying any property in any location and condition – we’re not fussy about your house being in ‘tip top’ condition.
We cover all the fees, even the legal ones, and we handle the whole process for you, to make it hassle and stress-free!
As we cover all costs, the cash offer you get from us will be the amount you receive in full in your bank – no need to worry about marketing your property really high in price, in order to meet your price expectations.
Whilst our offer will be slightly below the market value, you will receive every single penny, and you get to avoid waiting MONTHS on the open market, as we can complete in a timescale that suits you.
No timescales are out of reach – a week, a month, a year, the choice is yours!
We have over 50 years combined experience and we’re rated ‘excellent’ on Trustpilot, showing with us, you’re in safe hands.
Give us a call or fill in our online form to receive a no-obligation, cash offer for a fast sale of your property, with all fees covered by us – no need to market as OIEO to allow for chunks of money to be taken away as fees!