What Does ‘Offers in Excess Of’ Really Mean?

Quite often, when looking to buy a property, you will see that the person selling is only looking to accept offers in excess of a certain amount. If you are looking to sell your house, advertising with an offer in excess stipulation can lead to a tidy profit as a bidding war may erupt between interested parties.

Offers in Excess of (OIEO) is similar to terms such as Sold STC or Under Offer. They all sound relatively simple, yet can often have hidden meanings that need a little more clarification to avoid confusion when buying or selling.

To put it in its simplest terms, OIEO means that the price shown is the absolute minimum, i.e. a price from which any offer must start. That is not to say an offer under the amount won’t be accepted, but it is less likely.

Why is a property advertised with ‘Offers in Excess’?

There can be a few reasons for this, which are determined either by the estate agent or the prospective seller.

When it is something that the estate agent has proposed to the seller, it may be because stating a minimum price means the best chance of a successful sale. This price may in fact be lower than what the homeowner was aiming for, but by starting low, multiple bids may end up being submitted, leading to a sale well above the actual house value.

Occasionally, the estate agent may consider the property to be located where property values change from one end of the road to the other. As such, it is harder to place an accurate value on the house.

Can you offer less than the ‘Offers in Excess’ amount?

If you have been struggling to find a property, you could consider offering under the OIEO amount. The only problem is that it is likely to be declined. However, there is certainly no problem in testing a homeowner’s resolve. Sometimes, a property has been on the market longer than the homeowner had wished for, so they may accept in order to get their own property project moving.

If you are selling your home and have stated that you will only sell for offers in excess of a certain amount, consider if you are pricing yourself out of a sale. Sometimes an offer under that amount is the one that can be financed fastest, meaning you can complete more quickly.

It is also a common practice for houses advertised as OIEO to be showing prices above the actual market value. Therefore, offering under the OIEO amount can still sometimes see a bid come in above the market value, leading to a good return for the seller and a more achievable price for the buyer.

How much should I offer on an ‘Offers in Excess’ property?

Whether you are buying or selling, you should always be thinking of the party on the opposite side. If you are selling, you should ensure your price is realistic enough to attract potential buyers. If you are looking to buy, offer what you truly believe the property is worth. As mentioned earlier, the seller may be in a position where they have to accept your offer. So, whether you offer above or below, it is ultimately down to the seller.

Should I advertise my house with ‘Offers in Excess of’?

Ultimately, this is down to you. It can go one of two ways. You may end up overpricing your property and finding that offers are sparse. On the other hand, if you have advertised at a level that could incentivize a bidding war, multiple offers could come in, driving the final price up and resulting in a healthy profit from the sale.

Is there a difference between asking price and Offers In Excess?

Yes, there is, which can sometimes confuse both sellers and buyers. An asking price is simply what the seller is looking for. OIEO refers to the value the homeowner or estate agent believes the house to be worth.

Similar terms to ‘Offers in Excess’

The world of property is filled with a variety of terms and phrases that often cause confusion. This can sometimes lead to failed sales or mistakes being made. In order to help clear that minefield, we have listed some of the other key terms below.

Price on application

Often seen within car dealerships, this is also very common in the property market. This is often attached to a property that is deemed to be very expensive. Sometimes it would apply to a property that has a vastly different value to others in the same area. To make an offer on these properties, you would consult the estate agent to show your interest, then the estate agent would come back with a price.

Offers invited

Attaching this to your property can invite a variety of offers. This is often used where a true value is difficult to determine. Perhaps the area has such varied house prices, neither the homeowner nor estate agent can gauge a fair price. By inviting offers, those interested can submit an offer. The estate agent will then assess them and, if most come in around the same price, they will generate the value they believe the property is worth. They then contact the homeowner to consider next steps.

At Doorsteps, we operate as an online estate agent that puts the interests of both those looking to buy and those looking to sell first. Our team of experienced property experts can guide you in the best ways to sell or buy property. The house valuation service helps you get the best price for your home, whilst our vast portfolio of houses for sale allows you to find the perfect home at the perfect price. Contact us today to get your house hunt or property sale underway.

You may also like