What does 'offers over' mean?

If you've ever browsed Rightmove or Zoopla, you may have come across the term 'offers over' or OIEO. Confused? We've got you.

What does 'offers over' mean?

In property terms, offers over (or offers in excess of) is a pricing strategy where the seller is only considering and responding to offers which exceed the price advertised. For example, a property on Rightmove with an asking price of £425,000 (OIEO) would suggest that the seller's estate agent will only respond to offers of £426,000 or over.

Alternatively, a fixed price property is a home for sale with a static asking price. The price may go down or up due to economic pressures, but the homesellers want an offer that ideally mirrors their asking price.

Why opt for 'offers over'?

There are a number of reasons why someone might opt for an 'offers over' strategy.

For homeowners who have a minimum price in mind, 'offers over' can be a useful strategy because a bidding war could help them surpass it and achieve a higher price. By listing with a very competitive price, you leave room for buyers to outbid one another.

Unique properties like castles or ‘Grand Designs-style’ homes can lack comparable sales data, making a valuation tricky. In such cases, estate agents may list the minimum acceptable price for the seller, often driven by their need to purchase their next property.

Sometimes, properties are promoted through open houses or auctions with a highly competitive price below the Home Report valuation. This sparks interest and bidding wars, ultimately leading to a higher selling price.

Is 'offers over' a smart selling strategy?

It's a common one, that's for sure. Scroll through Rightmove or Zoopla, and you'll almost certainly come across a property with an 'offers in excess of' price tag. Whether it's a smart selling strategy depends on the context, including the climate of the local market and the property itself.

1. Considering the local market

The effectiveness of the 'offers over' strategy hinges on the state of your local property market. In a competitive market with high demand and limited supply, this approach can incite bidding wars, driving the final sale price above the initial asking amount. On the flip side, in a buyer's market, where there is lower demand and greater supply, it may lead to fewer offers and prolonged listing periods.

2. Property-specific factors

The type, condition, and location of your property also play a crucial role. Homes with unique features, in desirable neighbourhoods, or in high-demand areas may benefit more from the competitive nature of 'offers over’. However, for properties that may face challenges in attracting buyers, such as those needing significant renovations, this strategy may prove less effective.

If you're looking to find out more about what makes your home an asset, it's imperative that you get an accurate valuation. For most homeowners, the process is simple - get a valuation from a local estate agent. Even better, get three. This will get you the most accurate picture of your property's market value.

If you're in Scotland, the process is slightly different. You need to order a Home Report from a qualified, chartered surveyor. The Home Report value can be used to create a more competitive price.

3. Balancing transparency and strategy

While 'offers over' can create a sense of transparency by clearly stating the minimum expected price, it's essential to strike a balance. Being too ambitious with your asking price could potentially deter potential buyers. A smart implementation of this strategy involves thorough market research, understanding buyer behaviour, and adapting to the specific circumstances surrounding your home.

Are you thinking of selling sometime this year? Browse the local market with ease in HouseWorth, the homeowner's guide to homeselling.

4. Consulting with an agent

Ultimately, if you think 'offers over' is a viable price strategy for your home, it's well worth consulting with a local expert. A top-performing estate agent can provide valuable insights into current market trends, the performance of similar listings, and the preferences of potential buyers in your area.

At GetAgent, we compare thousands of UK estate agents by analysing official government data. You can see exactly which branch gives you the best valuations or sells the quickest. You can even check potential quotes and compare estate agent fees. Compare the top performers in your area today and book a slot that suits you best.

Deciding on your offer: What buyers should consider

If you're a buyer, there are a few things to consider before placing an offer on a property with an 'offers over' asking price.

How much are local property prices?

A property's advertised price generally coincides with its valuation - and with locally sold properties having a significant impact on its valuation, it's in your interests to find out how much local properties have historically sold for. If their sold prices are greater than your dream home's asking price (which they most likely will be), the buyer is expecting competitive offers to take them into a similar ballpark.

Using this information, you can adjust your offers to anticipate the seller’s expected price.

Is there anything you can uncover about the property?

Is there anything that you can find during a viewing, without ordering a survey, that might change your offer? The selling agent must give fair and honest information to potential buyers about the properties they're selling. With some digging, you might discover something that could affect your offer. If you don’t discover anything, that’s fine too. With clarity of mind, you can offer a figure that you think is fair.

Navigating below sticker price: Can I offer less than 'offers over'?

You can offer below an 'offers over' asking price but you might not receive a response. Estate agents have to relay every offer they receive (unless directed otherwise) to their clients - so there's a chance the home seller will consider your offer, but it all depends on timing.

If a property listing has been collecting dust on property portals, there's a chance the seller will accept your lower offer. But if the listing is brand new, the seller will likely reject any lower offers and wait for larger offers to roll in.

Summary: Everything's got a price

'Offers over' is a useful strategy for sellers who want to exceed their property's listed price because it's low enough to encourage a bidding war. If you're a buyer, do your research and make sure you make an offer YOU feel comfortable with.