House buying OIEO

[413x]

Looking at a house tomorrow and having been pipped at post before on another. So I wanted to get a good idea of what to offer with an OIEO

First, this is obviously pending we like it. But if we do it will be ideal (garden size and location is great)
Its also worth a lot in terms of my commute cost would be 0!

Lets say we love it. Do you offer a little over a let's say 240 is OIEO and offer 246
Or is it literally just a lottery?

It doesn't match the houses on the street. So can't use that as an estimate

Going in our favour, we are first time buyers with a mortgage in principle already printed out


This is a nightmare. It's a complete lottery by looks of things.

 

[DampCat]

It's the most ridiculous thing in existence. Why are we supposed to guess what they want? My sister wanted a house that was OIEO 850, so she offered 855 and the estate agent literally laughed at her. Apparently they wanted 870. So why not say that?

We went to see a place recently that was an OIEO so I just asked them to their face what they wanted, and they said we'd have to go through the agent to secure an offer.

Didn't bother, I don't have any interest in playing games.

To answer your question, there's no way to know. Offer what you want to pay and they'll say yes or no and you can go from there.

 

[Kill_Phil]

To answer your question, there's no way to know. Offer what you want to pay and they'll say yes or no and you can go from there.

Basically this. Make an offer that a) you're comfortable with and b) what you think it's worth, albeit the top end, especially if properties are selling quick and/or it's a property you're set on.

 

[tom_nieto]

I’d be tempted to offer the asking price. If you’re in a favourable position then the vendors will be hard pressed not to make a counter offer.

Be very frank with the estate agents if they’re not helping with a revised offer. If they are really unhelpful you could offer in £500 increasing increments on a daily basis and they’ll soon get fed up! They’re duty bound to convey any offers to the vendor for consideration.

 

[413x]

It's very tough. If inside checks out then I'd be happy for the asking. Even over.

Its rare to get such a garden size around here. I don't want a big house, never really lived anywhere where I've thought 'I need more rooms'

Add on this has a garage and is detached it ticks a lot of boxes.

Saving 150.per month on travelling costs is also not to be sniffed at

 

[agw_01]

Going in our favour, we are first time buyers with a mortgage in principle already printed out

No matter how much an EA may go on about it, they don't need to see the MIP. Allowing them to see it will show how much you could afford, not how much you're willing to pay.

 

[Semple]

It's the most ridiculous thing in existence. Why are we supposed to guess what they want? My sister wanted a house that was OIEO 850, so she offered 855 and the estate agent literally laughed at her. Apparently they wanted 870. So why not say that?

This really.

Everytime a thread pops up about this, i say the practice should be banned. If anything it should be construed as false advertising if they want an offer in excess of X but don't accept an offer above X.

You offer what you think the house is worth, whether that's the asking price, or more or even less. Unfortunately you're still at the mercy of the mortgage valuer. If it's OIEO of 240, and you put in 245, but the mortgage value thinks it's only worth 235, then you're likely needing to up your deposit to pay for the "overpriced" property.

 

[Burned_Alive]

Sellers go to OIEO when they're trying to achieve as much as possible and they (or the estate agent) don't really know the value of the property because there's nothing to compare to. So they're trying to invite offers with that as a minimum.

The key here is that it needs more than one person willing to make an offer which isn't always the case, so bear that in mind (despite what the estate agent may tell you). It also may not even be worth the OIEO price, so don't take it as granted that you should offer over it.

Personally I would ask the estate agent what the seller is looking for and if they wont tell you I'd start low and offer the OIEO value. The estate agent is bound to submit your offer to the seller.

 

[Saytan]

mine was OIEO at 200, paid 206 in the end.

 

[doggs]

Mine was OIEO at 200, offered 195, paid 200 in the end.

 

[IvanDobskey]

The house we are buying was up for sale at 325k for months, so it was obviously overpriced. when they brought it down to OIEO 300k it fell into our search criteria so we went to look at it. The guy made it quite clear he still wanted close to 325k but had changed the pricing to get more views. Well we made it quite clear we only had 300k to spend, so that's what we offered. Eventually they accepted the offer

 

[Funky-Melon]

My house was OIEO £250k. Offered £250k and got it.

We're first time buyers though and I said our help to buys won't let us go over £250k without losing our bonus which probably helped settle it.

It's all just a stupid game of playing each other off.

 

[IvanDobskey]

A lot of it is getting hits on Rightmove. They may want 325k for a house, but know they'll get a lot more people seeing the advert if they price it at OIEO 300k.

 

[fastwunz]

No matter how much an EA may go on about it, they don't need to see the MIP. Allowing them to see it will show how much you could afford, not how much you're willing to pay.

That’s not why they ask for it. It’s proof that the buyer CAN afford it and is subsequently a degree of security for the owner.

The agent themselves should not see it - it should go to an in house broker who in turn then gives the nod to the agent to confirm they have seen it and by extension, that the buyers claim that they can afford it is indeed legitimate.

As you say, what the buyer is willing to pay is entirely up to them. As an owner, I would want my agent to offer some assurance that the buyer they are presenting me with isn’t some chancer.

Having worked in the industry many moons ago, the amount of people making offers who actually can’t afford it (often knowingly with the full intention of chipping the price down that they originally agreed at the very earliest opportunity) was rife.

Showing willingness to prove your financial security within reason makes you a much more attractive prospect to an owner in a very volatile housing market.

Good luck with it all - at the end of the day, if you like it, buy it.

 

[b0rn2sk8]

A lot of it is getting hits on Rightmove. They may want 325k for a house, but know they'll get a lot more people seeing the advert if they price it at OIEO 300k.

This, its all about manipulating the right move search brackets. You want to price your house around the search banding, if its better than those at £240k but not really as good at those at £250k, OIEO £240k makes sense. You don't want to advertise at £245k becuase you will not feature in searches to £240K and right move by default lists the most expensive houses first so you'll be under all of the £250k houses on the page.

OIEO £240k basically means £240k-£250k, offer £240k or just below and go form there if you like it. If they don't like the offer they will tell you and you can always increase it, you could also politely remind them its a buyers market pretty much everywhere at the moment. We can't really comment on that though because we don't know the local market. If you like it, make an offer and see what happens.

The higher the value the bigger the search bands are, the more variance you get in property/price, the more in cash terms someone is willing to move and the more relevance OIEO has.

It's the most ridiculous thing in existence. Why are we supposed to guess what they want? My sister wanted a house that was OIEO 850, so she offered 855 and the estate agent literally laughed at her. Apparently they wanted 870. So why not say that?

Its perfectly reasonable to advertise a property OIEO £850k and expect to achieve £870k, its less than 2.5% of the total value and £20k is nothing when you are dropping £850k. Compared that to someone advertising a property for OIEO £240k and expecting £250k, that's a much bigger jump compared to the total value.

 

[413x]

We've put an offer in over. It's worth it to us simply due to the savings on fuel and that in 3 months its best Ive seen.

The increased offer is less than fuel cost I'd have to pay to commute. Having been pipped at last one wanted no regrets I'd we don't get it. But, this does sound like a potential bidding war set up. Of which we will not be entering

 

[Rroff]

All kinds of variables - some people do it just to try and weed out time wasters and will accept a good price around the OIEO others do it as above to try and increase exposure.

 

[413x]

All kinds of variables - some people do it just to try and weed out time wasters and will accept a good price around the OIEO others do it as above to try and increase exposure.

Yeah too many variables

Zoopla says the value is significantly over. But again, who knows.
It also saves a lot of renting time. Potentially 3 months if done in time.
I wish there were more houses we liked. There really are so few. It makes it more difficult.

 

[Drumroll]

Depending where the property is, it can work in your favour.
Recently spotted a property, needing quite the update. First time up for sale, 420k, down to 380k, 340k, now 325k. I think it's worth that last price, but decided to stay at my almost finalized house, instead a new project. Just show that the market, despite being close to Cambridge isn't as fast and demanding as it was 2 or 3 years ago.

 

[413x]

Lost out to a lower offer but cash buyer.
I can see this being an expensive long winded process where by we can't compete with such methods.

So few houses that we like.

Makes me wonder if its better to emigrate