If you are looking at purchasing a property marketed as ‘Offers Over’, the main question you will probably be asking is “how much will I need to pay to get this property?”.
Unfortunately there is not one straightforward answer to this question for all properties or circumstances. Ultimately there will be a number of factors you need to take into consideration including:
- The condition of the property
- The location of the property
- How much competition there may be for the property
- Your personal circumstances and budget
What is ‘Offers Over’?
There are a few figures we need to consider when looking at what ‘offers over’ actually means. Firstly, the Home Report Value of a property. The is the value that a surveyor has placed on the property for sale, taking into consideration many factors about the property, including its condition, location and size.
When someone is marketing their property as ‘offers over’ it is very unlikely the price will be the same as the Home Report Value. Not always, but the ‘offers over’ figure is usually lower than the Home Report Value. This is to try and attract as many potential buyers as possible.
So what does ‘offers over’ mean? ‘Offers over’ simply means that a seller is looking for offers over that specific price. The vast majority of the time they will also be looking to sell at a higher price than the Home Report Value. So it is important to read the Home Report thoroughly and make note of the Home Report Value of the property.
For Offers Over to work, there has to be competition between potential buyers. If there is no competition, buyers will see the asking price, most often considerably lower than the price that the seller is hoping for, and make an offer in the region of that price.
When competition is high, however, potential buyers are likely to bid against each other, and drive the sale price higher.
How Much Over the ‘Offers Over’ Price Are Buyers Paying?
The amount buyers are currently paying when bidding on properties for sale can vary between different areas. To get a good idea for how the current market is performing in your area and how much offers over you may have to bid we’d recommend calling one of our Property Purchasing Consultants on 0345 646 0208. You can also read the latest property market statistics in our property blogs.
What Does ‘Offers Over’ Mean For Property Sellers?
If you are a seller, the current demand in the market is good news. If your property is marketed ‘Offers Over’, and receives a lot of interest, you could end up with a very successful result. Potential buyers who don’t want to miss-out are more likely to try and find that little bit extra to submit the highest offer.
Every situation is, however, unique and despite the understandable appeal of the ‘Offers Over’ approach, many factors should be taken into consideration.
Just a few things to consider if you are a property seller are:
- The area your property is in and the local market conditions
- The type of property
- What your main priority for your sale is, for example is it speed, price etc.
The estate agent you choose to market your property with should be able to advise you on these and provide you with recommendations about pricing strategy.
Are ‘Offers Over’ Here To Stay?
The continuing issue of demand outstripping supply means that the ‘Offers Over’ approach is likely to be with us for some time to come.
It must be stressed that, as a buyer, the advice does vary from case to case and we are delighted for one of our purchasing specialists to help you if you are thinking of buying an ‘Offers Over’ property and need more advice.
If you are thinking about selling your property, please do get in touch to organise a free property valuation or to have a preliminary chat with us about the selling process in Scotland, including pricing strategies. Our valuers will help you with suggestions for maximising the appeal of your property to buyers as well as discuss current market conditions with you.
To arrange your free property valuation or selling quote today, just call 0345 646 0208 or email [email protected] and we will organise an appointment at your convenience.