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What Does Offers in Excess of Mean?

Property Saviour » First Time Buyers » What Does Offers in Excess of Mean?

The property business is full of 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 more than”? And why would anyone promote their property in this way?

We’ll answer these questions for you, and also explain why showcasing your property as “offers more than” may be putting buyers off your property and what you can do if this is the case.

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What does OIEO mean?

OIEO stands for offers in excess of a certain price. As the seller, you are expecting offers that exceed this price. Unlike an asking price, buyers tend to propose amounts below it.

Thus, with OIEO, you are informing potential buyers that you will not accept any offer that falls below the stated price.

Generally, when a property is marked as OIEO, this can indicate that the seller is not open to negotiation and you must meet the listed price.

What’s the difference between offers over and offers in excess of?

There is no distinction between these two expressions – they both imply that you, the seller, are expecting offers over the price and are not willing to entertain any offers below the stated price.

What Does Offers in Excess of Mean
Another reason to list as OIEO is when you and the agent can't agree on a price, with the agent valuing it lower than what you feel it's worth.

Why would I mark my house OIEO?

It can be beneficial to market your property as offers in excess of (OIEO). This allows you to make allowances for the cost of the estate agent fees and legal fees, which can significantly reduce the sold price and leave you with less than you wanted.

By asking for offers above the listed price, you increase the chance of getting close to the fee you desire. Bear 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.

Another reason to list as OIEO is when you and the agent can’t agree on a price, with the agent valuing it lower than what you feel it’s worth.

In this case, you can list the property at the price the agent has suggested but indicate OIEO, showing buyers that you won’t go any lower and would prefer a bid over this price.

Can I offer under the offers in excess amount?

You could try offering a lower amount, although it is very likely to be declined. If the property has been on the market for a while, there’s no harm in testing the water. It may be that the OIEO price is higher than other properties in the area, so a lower bid could be accepted.

According to some industry experts, 85% of homes end up selling for less than the asking price, so it is worth a try! If you decide to offer an amount lower than the OIEO, you should emphasise why your bid is the best offer.

You could point out that you can finance the move instantly, which might help influence the seller’s decision. Sellers often look to get more than the actual market price, so there’s no harm in offering less than the OIEO amount. It could still be higher than the original value.

What is the difference between asking price and offer in excess of?

The asking price is what the seller desires to receive for the property. Offer in excess of speaks to the value the owner holds the property to be worth. There’s a distinction, you just may not be able to recognise it yet.

Why do estate agents say offers over
OIEO may also be used when the property is to be sold at an open house event or auction as a way to encourage bidding and make the listed price a good starting point.

Why do estate agents say offers over?

Estate agents may have a different motivation behind suggesting an OIEO listing than you do. However, one common reason could be to reach a compromise if there is a disagreement on the asking price.

You may think the property is worth more than the estate agent has indicated, so they could offer the price they suggested but add ‘offers in excess of’ to show that they are trying to obtain a higher price for you.

Another reason for an OIEO listing could be to attract attention. Generally, the listed price is below the market value, making it a very competitive offer.

This entices buyers to believe they are getting a good deal, so there is a greater interest in the property, making the estate agent appear successful in their advertising.

OIEO may also be used when the property is to be sold at an open house event or auction as a way to encourage bidding and make the listed price a good starting point.

The property could be hard to value, either because it is unique or because it hasn’t been sold in the last 15 to 20 years. This makes it difficult for the estate agent to determine the correct market value and could prompt them to list it as ‘offers in excess of’.

How to spot whether an estate agent is on OIEO

The property comes with a price guide – take a look at it to find out what the estate agents’ service fee is (usually, this would be the price of the property).

The asking price is far higher or lower than the guide price – for instance, if they are asking for £70,000 but their guide price is £50,000, then it is On the Open Market with an Offer Invited (OIEO).

If the property is part of a development, then it is likely to be on OIEO because it would be misleading to pay up to £50,000 when you can pay all the other necessary cost for the development.

What is a normal offer on a house?

It’s tricky to give an exact figure, as every buyer will have their own notion of a ‘standard’ bid. Generally, though, a typical offer from a buyer on the open market is around 5 to 10% below the asking price.

You may find that buyers offer even more than this, up to 20% below, even if they can actually afford more, as they know that if their low bid is not accepted, they can raise it.

What is deemed ‘standard’ also depends on the context – if you are looking for a speedy sale, you are expected to receive an offer considerably lower than the asking price.

What is a normal offer on a house
If the property is part of a development, then it is likely to be on OIEO because it would be misleading to pay up to £50,000 when you can pay all the other necessary cost for the development.

Does ‘offers in excess of’ put off buyers?

In a nutshell, buyers tend to become discouraged when a property has an asking price that is higher than their budget. This is because offers that are accepted are often below the asking price.

If you list your property as “offers in excess of”, buyers will likely look elsewhere since this implies that you will not accept an offer unless it is above the specified price.

If you use this pricing strategy because you need to cover expenses like estate agent or legal fees, we have another option for you. This way, you will be able to receive the full price for your property without any additional fees.

Is it a good idea to sell my house with offers in excess of?

It can vary – some people think it’s not a good idea to overprice your house since it could lead to little or no interest. On the other hand, some believe it’s a great way to set a lower price, which could attract more people and cause the cost to go up.

Additionally, it could also make the sale quicker, as parties viewing your property may make attractive offers that are too good to pass up.

Is it a good idea to sell my house with offers in excess of
Some believe it's a great way to set a lower price, which could attract more people and cause the cost to go up.

Sell to us!

At Property Saviour, we buy any house, regardless of condition or location – we don’t require it to be in perfect condition. We cover all the fees, including the legal ones, and make the process hassle-free.

Our offer will be slightly lower than the market value, but you will get the full amount in your bank – no need to add a huge mark-up to cover the fees. We can complete the process in the timescale that works for you – whether it’s a week, a month, or even a year.

Get in touch with us or fill out our online form for a no-obligation cash offer – no need to market your property as ‘OIEO’ to cover the fees!

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