Types of Offer
When assessing the value of the property and the bid you will be making there a number of things to take into consideration. First thing is the Home Report Value which will generally by above the ‘Offers Over’ price. The offers over price tend not to mean very much as it is unlikely that the seller will want to be paid less than what the property is valued at within the Home Report. The ‘Offers Over’ price is intended to create more interest in the property.
There may be other factors to consider such as how long the property has been on the market and how much interest there has been. If demand is high in the area then it is likely that you will have to pay more than the home report value.
Offers in the Region Of
If the property is advertised as ‘Offers in the Region of’ this may indicate the seller is flexible on price and will accept a bid around the advertised figure. This method can often lead to a closing date being set as properties which are advertised in this way may generate a greater level of interest and then each interested party can submit their best offer.
If a property is marketed at fixed price it may indicate the seller is looking for a quick sale or the property has been on the market for a while. Generally, this means that the first person to make an offer that meets the required Fixed Price will be successful. However it, of course, can get more complicated than this as the seller isn’t obligated to sell at the Fixed Price and may look to negotiate. Fixed Price properties can appeal to some buyers as they know the sellers expectations and negotiation is less likely. Your Solicitor will advise on the best approach when bidding on a Fixed Price property as it may be worth bidding below the Fixed Price and negotiate up to a level accepted by the seller.
This is seen when the property is going to Auction. Again using the Home Report as an indicator of the true value of the property will allow you to understand what the property will likely be sold for. The guide price is where the bidding will usually start and will go up from there on the day of the auction in £1000 increments.