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Offers Over

Discussion in 'The Buying & Selling Process' started by Propertyman, 19th Oct, 2016.

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  1. Propertyman

    Propertyman Active Member

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    Hi guys,

    What's your experience with listings that say 'Offers Over'? The area that I am looking at seems to have it for most properties for sale. Say one had offers over $350,000, would offering $345,000 get me no where? I'm not sure how to approach it.

    Keen to hear your thoughts.
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    It isn't allowed here, which I think is a good thing.

    In other states where it is, I think it'd depend on the market cycle of the area you're in. Do some research on the property and form a view of what its actually worth, don't just offer over or under just because the agent says so or because you like that number.

    If the market is hot then you're probably going to lose. If its cold then everyone will try sneaky offers.
     
  3. Blacky

    Blacky Well-Known Member

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    I ignore the 'offers over' bit, same as 'from'.
    They are just giving you an indication of what they are hoping for. Offer what you think you are happy to pay for it.

    Blacky
     
  4. Big Will

    Big Will Well-Known Member

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    Depends on what the comparables are telling you.

    E.g. House is worth 1M

    Advertised offers over 1.5M, is it worth it? Hell no.

    Advertised offers over 1M, is it worth it? Maybe as you can have some variance but you might be able to get for less than 1M.

    Advertised offers over 800k, is it worth trying for 790k? Nope as it is worth ~1M and they are baiting.

    Put whatever price you want on it but if the comparable properties are telling you it should be 400k you can try at 345k but I doubt you will succeed.
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    @Propertyman - If it is in NSW it is illegal - capture the advert and report the agent to Fair Trading ASAP. They are rogues and will be fined.

    upload_2016-10-19_11-13-26.png
     
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  6. pinewood

    pinewood Well-Known Member

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    I agree with @Blacky. It is most important to know the market and from there assess what you think it's worth and what you are prepared to pay as a top figure. Ask if there are any other offers if you can trust the agent's word. It also depends on how much you really want the property and whether you are prepared to lose it to another buyer. If the property has been on the market for a while and there have been no offers you can try an offer below. Read some books on negotiation it is actually a skill worth learning about.
     
  7. Propertyman

    Propertyman Active Member

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    Great thanks for the feedback all
     
  8. Propertyman

    Propertyman Active Member

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  9. Art Vandelay

    Art Vandelay Well-Known Member

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    I bought a property in Brisbane last year, advertised for offers over $429,000. Ended up getting it for $470,000. It was on the market for 4 days, 15+ groups through at the only open. We got it a fortnight after our initial offer as the original contract fell through.
    Was it bait pricing? Probably. At $470k it was pretty much land value, with the house needing significant work. It was also a distressed sale, with settlement needing to be brought forward to ensure it didn't enter probate.
     
  10. Kinnon Bell

    Kinnon Bell Finance Broker

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    The ones that make me laugh are the ones that say (for example) offers between $300,000-$340,000. So if they're presented an offer of $350,000 they'll knock it back? :D

    I'd just offer what I think it's worth.
     
  11. The Y-man

    The Y-man Moderator Staff Member

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    In Melbourne the "over" or "+" means ~10%

    So $350,000+ means $380,000

    The Y-man
     
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  12. Agent30yrs.

    Agent30yrs. Well-Known Member

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    I think it's a stupid concept.
     
  13. Big Will

    Big Will Well-Known Member

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    Some agencies are worse than others there are some advertised for 500k+ but will sell well into the 6s and maybe get a 7.
     
  14. The Y-man

    The Y-man Moderator Staff Member

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    Dammit, should have sold my IP's through them!

    The Y-man