Understanding Offers In Excess Of and Offers In Region Of

Offers Over Meaning

When looking at property listings, you might often see the phrases ‘offers in excess of’, ‘offers over’ or ‘offers in region of’. But what do they mean? ‘Offers over’ and ‘offers in excess of’ both mean the same thing, so that’s a good start. ‘Offers in excess of’ is often shortened to OIEO, which we will use from hereon in. What it means is that the seller of the property wants potential buyers to offer more than the listed price. This is different from a regular guide price, where buyers might start with lower offers and negotiate from there. With OIEO, they are telling buyers they will only think about offers higher than the stated price. This is a clear signal that the seller won’t accept anything lower. Sometimes, this is because the seller knows exactly how much they want for the property. It’s quite similar to a ‘fixed price’, leaving very little room for haggling or bargaining.

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What Does Offers In Region Of Mean?

Now that we’ve covered the offers over meaning, the next property listing tag on our list is offers in region of. ‘Offers in region of’ or OIRO gives you a general idea of what the seller wants for their property. It means the seller is open to bargaining because they don’t have a fixed price.

With OIRO, it’s tricky to decide how much to offer. If you go too low, someone might bid higher and you’ll lose out on the property. In simple terms, you can negotiate more with this type of seller. Just remember, if you offer less and someone else offers more, you probably won’t get the property. Properties with “offers in region of” usually have more interest from buyers, so make sure your offer is still competitive.

What’s the Difference Between the Asking Price and OIRO and OEIO?

The asking price is the specific amount that the seller hopes to receive for the property. On the other hand, “offer in excess of” indicates the value that the owner thinks the property holds. In simple terms, the asking price is what they want, while “offer in excess of” is what they think the property is genuinely worth.

Why Are Some Properties Marked As OIEO?

The seller has calculated the exact sum they need to achieve from their property sale to cover all estate agent fees, legal expenses, and their next property purchase, and probably has a minimum amount in mind that they require from potential buyers. Using OIEO pricing relieves them from the pressure of entering negotiations that go below this set amount. This approach allows them to save time by focusing on buyers who can afford to meet this price and filtering out those who can’t.

If the seller’s estate agent appraises the property at a lower value than what they believe it’s worth, they can meet halfway by listing the house at the price they suggest, accompanied by OIEO, indicating to potential buyers that they won’t accept offers lower than that amount (and would prefer offers higher than that). This strategy can also be effective in the case of properties that are challenging to appraise – maybe due to not being sold for many years or lacking comparable houses in the vicinity for an accurate valuation comparison.

The estate agent and owner might opt to sell the house at an auction, and start with a lower price than what the house seems to be worth. The idea is to spark a bidding competition and end up getting more money for the house. But for you as the buyer, it could be a chance to grab a great deal on a property.

Another reason for OIEO and OIRO property listings is purely to drive more interest in the property and make it sound more popular than it actually is. Some estate agents even list an OIEO price lower than the market value to attract more buyers, making them think they are getting a once-in-a-lifetime deal. Doing diligent research on local property values can help you decide on a realistic yet competitive offer to make.

Can I make an offer below the ‘offers in excess’ amount?

In a word, yes. It is, however, unlikely to be accepted. If the property has been for sale for a while, it’s okay to offer less money just to see how the seller reacts. Sometimes, the price they’re asking for might be unrealistic when compared with similar properties nearby. So, they might accept a lower offer if they don’t have other choices. If you want to offer less than the asking price, explain why your offer is still a good deal. For instance, you could mention the possibility of a cash sale, if you can provide this.

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How Much Should I Offer on an OIEO or OIRO Property?

This really depends on the individual property in question, as there is no hard and fast formula to decide on how much to offer. Check out similar properties in the area to get a good idea of what a realistic price would be, and base your offer on these values. Get advice from experts in the area for tips and advice on making a competitive offer on OIEO and OIRO properties. Also, trust your gut – don’t get whipped up by marketing techniques designed to rush you, and don’t make an offer if you simply don’t believe the property is worth that much. All offers will usually be passed on to the seller, so you have as much chance as other potential buyers to get a good deal. Remember, you can always make another offer if your initial one is rejected.

Understanding the meanings of “Offers in Excess Of” (OIEO) and “Offers in Region Of” (OIRO) can be crucial when navigating the world of property investment. When deciding how much to offer on an OIEO property, it’s essential to assess the specific property’s value and compare it with similar properties in the area. Seeking advice from local experts, doing research on similar properties, and trusting your instincts are always valuable strategies.

Winning the Auction – What’s Next?

Once that gavel goes down, congratulations, you’ve won! So what happens next? Once you have paid your deposit and made sure your finances are in order, it’s time for a survey. This will help you find out if there are any repairs that need doing or any other potential issues. If you are using a mortgage to buy the property, the bank may ask for a property valuation, which can be done at the same time as a survey. You should also take out an insurance policy which begins on the same day you take ownership of the property, which is usually the same day as the auction. We did say it was fast! Given that the ownership transfer is instant, you should also have your solicitor or conveyancer ready to facilitate the transfer of legal documents.

What Happens if the Property Doesn’t Sell?

This scenario is not unheard of, where a property doesn’t get any bids above the reserve price. In this situation, it’s common for the auction house to ask any interested buyers to make them an offer after the auction. If this happens, don’t be afraid to make an offer below the reserve price – the seller is going to be highly motivated to sell after the property’s poor performance at the auction.

So in conclusion, property auctions can be a quick and relatively easy way of investing in property, and there are some really unique finds out there that you might miss out on otherwise. But do your due diligence first, make sure your finances are in order, get some legal assistance, and make sure you stay within your budget. Happy bidding!

Before you go …

We hope this article has helped you understand the offers over meaning, offers in excess of meaning, along with other similar tags you may see on property listings.

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