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.
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.
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
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.
@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.
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.
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.
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? I'd just offer what I think it's worth.
Some agencies are worse than others there are some advertised for 500k+ but will sell well into the 6s and maybe get a 7.
