“Offers Over” explained
We have recently been listing our properties for sale using an “Offers Over” pricing strategy. A lot of buyers and sellers have asked me about this marketing strategy, so let me explain.
No residential property has a “set value” – a property will be worth one price to one person and another price completely to someone else. So to place a set price on a property (which is usually above the sellers expectations) is not only saying “don’t pay me any more than this amount”, but also sets your buyers up to be disappointed with the home when they get there having judged it on the higher asking price. And we all know buyers have a strong dislike for the use of “Offers”, “EOI” or “POA” and will often skip over these properties with no price guide in their search.
So what better concept than picking a figure that the seller would not accept as a baseline and inviting buyers to offer what they feel it would be worth to them? This provides the ideal opportunity for a willing buyer and a willing seller to meet and agree on mutually satisfactory grounds. It does not mean that the seller has to accept any offer over the “Offers Over” price; it is an invitation to negotiate over this baseline figure.