TimEllershaw
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| posted on 30/1/13 at 02:09 PM |
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House Selling : "Offers Over..."
Has anybody bought or sold a house that has been advertised as “Offers Over £xxxx “ ?
I just wondered what you thought of the process.
Background:
We are selling my Mum’s old house (she has moved to a little rented bungalow).
The house is a large semi-detached in a desirable part of Leicester, and is likely to sell quickly.
Currently empty. Needs a bit of tidying up.
The estate agent’s theory is that the lower price will attract more interest. He believes that there should be plenty of offers, and we could move to
a sealed bid scenario. In that situation, people are likely to “bid-up” to ensure they get it. Doing that is likely to get more than staring high and
negotiating down. This obviously depends on getting multiple buyers interested and hoping that they compete.
( I think this is how things work in Scotland ? )
Anybody have any thoughts ?
Thanks
Tim.
http://www.teenagecancertrust.org/
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Tiger Super Six
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| posted on 30/1/13 at 02:18 PM |
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Well the logic works and besides, if you do it at a lower value and only attract one person, then if you had sold it at the higher price you probably
wouldn't have got them!
Regardless of what estate agents will say the markets on it's knees and there's not many buyers out there. Personally, I would be
expecting a flood of interested parties, if you get them it'll be a bonus!
Mark
Tiger Avon
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owelly
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| posted on 30/1/13 at 02:31 PM |
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Of the houses I've bought (and not bought!) and sold over the past few years, the price is just a guide! 'Offers over',
'offers in the region of' and any other such statements are there to prick the buyers interest. I was a day away from completion on a
house that was 'offers around £400,000'. My offer of £435,000 was accepted until someone flopped £500,000 on the table. Likewise, I house
that was 'offers over £350,000 finally sold for £270,000.
Even if you have a house priced at £200,000, there's nothing to stop you from asking for more 'due to unexpected interest'. Not the
sort of thing I'd want to do but it's been to me several times and at the end of it all, money is money!
http://www.ppcmag.co.uk
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mark chandler
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| posted on 30/1/13 at 03:09 PM |
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The one I'm in was advertised as offers in excess of so we offered the bottom value so nothing in excess and got it, buyers market still.
We did ask about going lower and the estate agent said the vendor had been offered less and just said NO, our USP was agreed mortgage and able to move
very quickly as sale agreed on existing house with no chain.
Selling I just set a price that was acceptable to me to shift the house quickly, even then I got knocked down another £5000 but it was worth it to
move on.
If its empty and you do not need the cash I would try and rent out, all my mothers money went in nursing fee's, turning it into cash may not be
a move forward unless you plan to gift.
Regards Mark
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scootz
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| posted on 30/1/13 at 03:32 PM |
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Yup... that's how it works in Scotland.
You get some at 'Fixed Price', very few at 'Offers Around' and the vast majority at 'Offers Over'. Once a few
'interests' have been noted by the selling agent, then they arrange a 'closing date' by which time all sealed offers have to
be submitted. Once received, the seller can review them, then accept the one that suits best (usually the highest  ) or declline them all and start
again.
It's Evolution Baby!
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TimEllershaw
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| posted on 30/1/13 at 03:35 PM |
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quote:
If its empty and you do not need the cash I would try and rent out, all my mothers money went in nursing fee's, turning it into cash may not be
a move forward unless you plan to gift.
We did look into renting, and financially renting vs selling woulod be quite similar in terms of monthly income. So we were open to suggestions, but,
a friend of my Mum rented her house out, and had loads of problems. ( former family home, got trashed, tenants owed money, court costs… etc... etc.
)
A very non-scientific sample of 1 experience, but it has put Mum off the idea. She is in her 80s and quite risk averse, so having the
money-in-the-bank is a more comfortable option for her.
http://www.teenagecancertrust.org/
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Simon
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| posted on 30/1/13 at 04:08 PM |
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quote:
Originally posted by TimEllershaw
quote:
If its empty and you do not need the cash I would try and rent out, all my mothers money went in nursing fee's, turning it into cash may not be
a move forward unless you plan to gift.
We did look into renting, and financially renting vs selling woulod be quite similar in terms of monthly income. So we were open to suggestions, but,
a friend of my Mum rented her house out, and had loads of problems. ( former family home, got trashed, tenants owed money, court costs… etc... etc.
)
A very non-scientific sample of 1 experience, but it has put Mum off the idea. She is in her 80s and quite risk averse, so having the
money-in-the-bank is a more comfortable option for her.
We rented out our flat and used an agent. Took all the hassle and responsibility out of the equation and if it got damaged that was their
responsibility too.
ATB
Simon,
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mark chandler
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| posted on 30/1/13 at 04:45 PM |
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quote:
Originally posted by TimEllershaw
quote:
If its empty and you do not need the cash I would try and rent out, all my mothers money went in nursing fee's, turning it into cash may not be
a move forward unless you plan to gift.
We did look into renting, and financially renting vs selling woulod be quite similar in terms of monthly income. So we were open to suggestions, but,
a friend of my Mum rented her house out, and had loads of problems. ( former family home, got trashed, tenants owed money, court costs… etc... etc.
)
A very non-scientific sample of 1 experience, but it has put Mum off the idea. She is in her 80s and quite risk averse, so having the
money-in-the-bank is a more comfortable option for her.
The reality of age, my mother was in her 70's when she moved into assisted housing then dementia pushed her into a care home, although it sounds
nasty if we could do this again I would have gifted as much of her estate away as possible, in the end over £125k in care home fee's as we had
to top up to keep her in a decent one and when they look at your finances they went back 7 years so anything we did gift counted against her.
They also grabbed all pensions when we started to claim, because she had a working life so paid in this was nearly worth as much as the money the
county agreed towards nursing home fee's.
It's a cruel world, you enter with nothing and anything you make while Ali e they claw back very quickly.
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motorcycle_mayhem
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| posted on 30/1/13 at 05:11 PM |
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Ditto on the care home fees thing. At £4300/month it doesn't take long to burn through the estate that the COP will take (if you don't
offer it as the POA). Hilarious when if there's any 'debt' after the eventual death, as there was in my parent's estate, the
COP (et. al.) start chasing you for it.
And yes, forgot to add. Agreed on the previous comment.... my father died painfully at his expense in a home, full of others that were 100% tax payer
funded...
Liquidate and gift. Hope that your parent(s) survive the gift for 7 years.
As for the house, my opinion would be to grab any (real) offer of (real) money at the detriment of your 'expectations'.
[Edited on 30/1/13 by motorcycle_mayhem]
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swanny
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| posted on 30/1/13 at 05:14 PM |
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tell your mum that if she is risk averse, sticking it in the bank at 80 years of age is very risky for the reasons outlined above.
i'd be getting some very good financial advice from someone who knows about protecting assets.
what about putting it in trust for you/kids? safer, there are a few things you can do i believe. i can put you in touch with the guy we used.
as above, if mum has to go into a home, the whole lots is at risk.
thats the biggest gamble your mum will ever make.
[Edited on 30/1/13 by swanny]
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britishtrident
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| posted on 30/1/13 at 07:11 PM |
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In Scotland offers over is the norm, in a normal market the advertised offers over price is a realistic price but the market isn't normal
nothing is moving unless it is at 2/3 or less of the price it would have sold at 6 years ago.
[I] “ What use our work, Bennet, if we cannot care for those we love? .”
― From BBC TV/Amazon's Ripper Street.
[/I]
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sdh2903
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| posted on 30/1/13 at 07:54 PM |
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As above its the norm up here.
4 years ago we nearly bought a house for 15% over the "offers over" price, then that sort of percentage was the norm. Thankfully the deal
fell through due to survey issues, if it had i would be in a whole new world of negative equity.
In todays market unless its very sought after then offers at the "offers over" price are pretty normal around here.
The best house sale I ever witnessed was not far from me, like yours it was a desirable house. An open house viewing weekend was put on. There must
have been over 100 couples view it, the owners made an effort with a few bottles of plonk and nibbles for the viewers. You were then invited to lodge
offers through your solicitor before the following friday. 3 weeks from start to finish, job done and it went for 35% over the offers over figure.
The highest offers aren't always the ones accepted either, chain-free is a very good plus point in the market at the minute.
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zilspeed
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| posted on 20/2/13 at 06:30 PM |
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I'd be very surprised if the offers over system regains a significant foothold again in my lifetime.
It's never been more of a buyer's market than it is just now and certainly never for so long.
Confidence is shot and everyone's twitchy.
Vendors are happy to get any sort of offer which washes their face.
Buyers want to know they're buying at bottom money.
Lenders aren't keen to lend.
I'll go further.
Mass house ownership will be seen as something that we saw in the latter half of the 20th century and into the turn of the 21st.
Markmywurdz etc.
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