Property buying: "Offers in excess of £X"

MarkDavis · 19 Jan 2012 at 22:38

I've no experience this type of bidding.

Normally, if a property is for sale, I can kick off the negotiations at a lower price to see where we end up. So for example, a property on the market for £160k, I can look at historical sold prices on say Mouseprice to use as a guide, and might offer £148k going to say £152k or thereabouts depending on the circumstances, whether seller is in a chain and keen to move, how much I want the property etc.

If its the other way round ie offers in excess of, what's the typical strategy? 5% more? 10% more. This particular place I'm looking at is priced low at £130k as its a 'doer upper' (in fact, it's a bit of a mess) but is attracting a lot of interest due to the potential. It's a very unusual, old and unique property, and there don't seem to be any directly comparable prices on Mouseprice.

Closed bids just seem to be lottery. Obviously, I don't want to overpay but neither do want to bid too low so that I have no chance of getting it.

Anyone have experience of this?

culvers · 19 Jan 2012 at 22:50

you can always raise your offer - so go in at what you feel its worth and take it from there.

the whole "offers in excess" thing is just a marketing ploy to encourage higher bids

if it says "offers is excess of 130k" then its no different to "asking price 130k" its just the EA trying to be clever.

Stretch · 19 Jan 2012 at 22:50

Offers in excess of normally means that the property is already under offer at that price.

Threepwood · 19 Jan 2012 at 22:53

Where do you live? In scotland it's the norm to have offers in excess rather than a simple buying price.

Jokester · 19 Jan 2012 at 22:56

It's an annoying system as it invariably means you've paid too much if you win the bid. Get a survey done perhaps?

I was looking at places at the height of the boom that were offers over £100-110k and they were expecting £150k. Things have changed though!

BeeP · 19 Jan 2012 at 23:14

shadesofgrey said:
Where do you live? In scotland it's the norm to have offers in excess rather than a simple buying price.

Very true & I would say very annoying. There seems to be some sort of known to everyone up here but unspoken "rule" that when it is offers over you add about 10%.....or was it 5%, been so long I've forgotten now lol.

Why not just ask for what you want & be done with it, greedy goits!

weescott · 19 Jan 2012 at 23:19

Jokester said:
It's an annoying system as it invariably means you've paid too much if you win the bid. Get a survey done perhaps?

I was looking at places at the height of the boom that were offers over £100-110k and they were expecting £150k. Things have changed though!

Worked out well for me.

In Scotland you would expect to pay 10% more at the very least.

Threepwood · 19 Jan 2012 at 23:39

Idk, it's just a different system, it's showing you the minimum price they will take and seeing what offers people will give them.

Rather than asking top price and having people knock you down.

In a sense it could be seen as being fairer the scottish way around. Debatable, ofc.