The property industry is full of acronyms, from SSTC (sold subject to contract) to BTL (buy to let). One of the most common acronyms you’ll see as you’re scrolling through Rightmove is OIEO – that’s Offers In Excess Of. But what does Offers In Excess Of mean, when should it be used by vendors and how should you react to that as a buyer?

In this article, we’ll tell you everything you need to know about ‘offers in excess of’, helping you to make informed decisions whether you’re buying or selling property, or just interested in the markets.

For help buying or selling an “offers in excess of” property contact us here or give us a call at 0151 541 7087

OIEO – What Does It Actually Mean?

Whilst ‘offers in excess of’ is a common phrase in the property industry, many homebuyers and vendors are left wondering exactly what this phrase means.

‘Offers in excess of’ is a phrase which is used to mean a starting point from which to make your offer on a property. So, if a property was on the market for offers in excess of £320,000, your offer should not fall below £320,000, but it can exceed it.

If you’re looking to buy a property that is being advertised as ‘offers in excess of’, it’s unlikely that the vendor will accept an offer that is below the asking price. They are expecting offers which exceed the guide price, whether that is by £500 or £15,000.

For vendors, you may choose to list your property for sale as ‘offers in excess of’ if your house is difficult to value, for example if it is one of a kind. You might also consider using this wording so that you can list your home at a lower price than you really want, to generate a higher level of interest.

Whilst listing a house as ‘offers in excess of’ doesn’t guarantee that the offers made will actually be higher than the asking price, it can help to deter buyers who are shopping for houses above their budget.

why are houses listed as offers in excess of

Why Are Houses Listed As “Offers In Excess Of”?

As we mentioned in the previous section, there are many different reasons why a property might be listed as ‘offers in excess of’, or OIEO. Let’s take a look at some of these reasons.

1.     Estate Agent – Vendor Compromise

When an estate agent values a property, the price that is generated by the agent may be lower than the vendor was expecting or hoping for. In this case, the estate agent and vendor may choose to compromise by listing the house for sale at the price that was generated in the valuation along with the phrase ‘offers in excess of’. This can potentially give the property a better chance at achieving offers which exceed the asking price, without putting off buyers who simply can’t afford the price that the vendor is hoping to achieve.

2.     To Generate Interest

Sometimes an estate agent may suggest marketing a property as ‘offers in excess of’ to generate higher levels of interest. This is often the case if the house is being sold through an auction or an open house event, and aims to start bidding wars between potential buyers to push the price up. When this technique is used, the property will usually be advertised below the market value to generate high levels of interest and several offers.

3.     Valuation Difficulties

Some properties are more challenging to value than others. It could be that the property or its location is one of a kind and completely unique, meaning that there is nothing to compare it against. This could be the case with a renovated castle, a cliff-side vineyard or an architect-designed masterpiece. In these situations, the estate agent will usually list the property at the lowest price that the vendor is happy to accept, with the hope of receiving a higher offer if enough interest is generated.

For help buying or selling an “offers in excess of” property contact us here or give us a call at 0151 541 7087

Can You Offer Below Asking Price On A House Listed As “Offers In Excess Of”?

If you’re thinking about making an offer on a property that is listed as ‘offers in excess of’, you might be wondering whether you are able to offer below asking price. Is your offer likely to be completely disregarded, or will it be considered by the vendor?

When you’re making an offer on a property, we’d always advise offering what the property is worth to you. If you offer too low, your offer is likely to be rejected and you could risk losing the property to another buyer. Conversely, don’t be tempted to be pushed higher than you’re willing to pay in the heat of the moment, as you may regret your decision.

Sit down before making your offer and carefully consider what the property is worth to you. This also means thinking about your maximum budget and ensuring that the property price falls within your means.

Once you’ve worked out how much you are prepared to pay for the property in question, it’s time to make your offer. When making your offer, you can also explain the advantages of yourself as a buyer. It could be that you’re a first-time buyer or purchasing without a chain, or that you’ve already sold your property so you can move quickly. This will give your offer the best chance of being accepted, even if it does fall below the asking price.

Although the vendor may be more reluctant to accept an offer that falls below the asking price, especially if the property is listed as ‘offers in excess of’, there is always a chance that you could fall lucky. This is often the case where the property has been on the market for a while and the vendor is eager to sell. Estate agents are legally obliged to inform the vendor of any offer made on their property, so you can rest assured that your offer will be considered, whether it’s above or below the asking price.

how much over the asking price should I offer

How Much Over The Asking Price Should I Offer?

If you’re preparing to make an offer over the asking price of a property, you might be wondering just how high you should go. Unfortunately, there is no straightforward answer to that question, as a house is only worth what a buyer is willing to pay.

Ultimately, we’d always recommend offering what the house is worth to you, as the buyer. It’s important not to offer more than you’re willing to spend, as you are likely to regret the decision in the future. However, if you offer too low, you could risk losing the property to a buyer who is prepared to pay more.

Related Questions

Do Sellers Always Pick The Highest Offer?

It’s a common myth that vendors will always choose the highest offer when they’re selling their property. Whilst price is critical, most vendors will also consider the position of their potential buyers. First time buyers or cash buyers are usually preferred as they do not have a chain, meaning that the sale is likely to progress faster. They’re also more likely to choose a buyer who has already sold their property over a buyer whose house is still on the market. So, whilst price is important, it isn’t always the deciding factor.

What Does OIRO Mean When Buying A House?

OIRO stands for Offers In The Region Of. This means that the vendor of the property is open to negotiating the sale price of their house, both up and down. Whilst you can choose to offer the asking price, you can also offer more or less than this, and then negotiate with the vendor until you reach an agreement over the purchase price.

In Summary

OIEO, or Offers In Excess Of, is a common phrase that is used in the property industry. In this article, we’ve answered the question ‘what does offers in excess of mean’, as well as exploring how much you should offer on a property with this label.

If you’re still confused about ‘offers in excess of’, or you’re thinking about selling your property for ‘offers in excess of’, give us a call today.

For help buying or selling an “offers in excess of” property contact us here or give us a call at 0151 541 7087