You don’t know how much to bit for a property and ask yourself this question: “Offers Over: how much should I need to offer? This article will help you find the answer to this question. Read on.
Offers over meaning
When a property is advertised on property websites as “offers over”, it means that the property owner is hoping to sell for more than the market property value. Because the property market is changing, many properties are selling for more than their Home Report value. This is particularly true in areas like Birmingham and West Midlands, where there is significant competition for almost every property that becomes available.
Property price bidding and negotiation
When you find your future home – online or through estate agents – and want to make an offer, the key is to leave yourself room to play with a budget that you can realistically manage. Don’t go too high with your first bid, otherwise, you may end up paying far more than you need for that property. If there is a lot of interest, the seller may simply dismiss your counteroffers in favor of another buyer with a matching or very close bid.
Difference between Fixed Price, Offers Over and Offers Around
Fixed Price – this generally means that the seller is willing to accept the first offer made at the given price. On the plus side, this can lead to a fast sale. On the downside, it reduces the chance of competition, and consequently the willingness of buyers to offer more.
Offers Over – this indicates that the owner is looking for a price higher than the advertised price. The price advertised is usually pitched lower than the Home Report value. On the plus side, this system can greatly benefit the seller if the competition is generated around the sale. On the downside, some buyers may be worried that during the ‘blind bidding’ process the price might exceed what they can afford.
Offers Around – this method clearly states the price range at which the owner is willing to sell at. The asking price generally coincides with the Home Report valuation. On the downside, it might not attract as many buyers as the “Offers Over” system as the asking price is pitched slightly higher from the outset.
Offers over – how much should you offer?
If a property is advertised as ‘offers over‘, the seller gets higher offers than the price stated. It is difficult to know how much to offer as you won’t know what other offers are being made. Make sure you work out your finances before you decide how much to offer. If you want to offer more than the valuation, you will have to meet the difference yourself. Fortunately, there are a number of factors that we can take into account which allow you to make a more informed offer on any properties that you are interested in.
Home Report Valuation – When, in 2008, the government introduced the Home Report system in Scotland, it meant buyers had access to all of the information needed before proceeding with making an offer on a property. Perhaps the most obvious thing to look at is the Home Report valuation. A property that is valued at £150,000 is likely to be marketed at Offers Over £145,000, or a figure close to that level. In some cases though, the seller and selling agent might agree to set an even lower asking price in the hope of attracting more buyers, thus creating more competition.
Since when is the property for sale? – The first weeks that a property spends on the market are crucial. During that time, the property is seen on the major websites. The longer a property spends on the market, the less likely it is to attract a large amount of competition among buyers.
Location – It probably goes without saying that the location of a property is a key factor in determining the sort of premium that it will achieve. For example in Birmingham demand has been particularly high this year and as result properties are achieving much higher premiums over their asking price.
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