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Written by Ruban Selvanayagam
Ruban Selvanayagam
Ruban Selvanayagam is a professional cash homebuyer, private rented sector landlord, auction specialist, blogger and media commentator.
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Edited by James Durr
James Durr
James Durr is a passionate property entrepreneur with a strong foundation and background in business.
What Does Offers in Excess Of Mean?
In simple terms, Offers in Excess of (OIEO) means the seller will only consider offers above the stated number and not a lower price. It has the same meaning as “offers over.”
There’s one key difference between the “asking price” and the “offer in excess of” price: when estate agents set an asking price, there’s an implicit understanding that it’s somewhat flexible.
Often, buyers try to negotiate on prices – especially if the property has been listed on the market for a while or there’s currently a “buyers” market (meaning there are more buyers than available properties for sale).
When you see a property advertised with “offers in excess of” a price, it signals that trying to haggle the price down won’t work.
Instead, the seller is stating the absolute lowest price they’d accept, hoping to attract even better offers. It’s rarely worth submitting a price for a property below this number.
Offers in Excess vs Offers in the Region Of (OIRO)
You may also see properties advertised as accepting “Offers In the Region of” (OIRO). This is different from “Offers in Excess of” because the sellers are potentially open to offers below their asking price too.
OIRO works more as a guide price, whereas an OIEO is more like a fixed price.
Offers in Excess of vs Price on Application
Price on application (POA) is another term commonly used on property listings.
However, estate agents generally only use POA on high-end properties when the price is sensitive information and they don’t want to make it public. It’s also fairly common to see it with post-auction properties (where sellers are looking to potentially strike a deal).
Why Do Sellers Use OIEO?
As an outsider in the property industry, it might be confusing to see offers in excess listed on properties.
Why can’t an estate agent just use a guide price based on what they actually want instead of playing games?
There are a few reasons why is may be a good idea to sell a property using an “offer in excess” listing…
Marketing Strategy
Sellers and estate agents want to encourage interest in the properties they’re selling. Opting for a lower price often achieves this – it attracts potential buyers looking for a bargain and those with price filters set to rule out more expensive options.
However, the seller may still be hoping for more – so using an “Offers in Excess of” listing instead serves as a compromise. The hope is that, if there’s a higher number of interested buyers, at least one will be able to offer a better price.
Setting a very competitive price can even encourage a bidding war (similar to what occurs in auctions) sometimes.
Difficult Valuations
Another reason for opting for an “Offers in Excess of” listing is that it may be tricky to determine the property’s fair market value. This is usually due to a lack of recently sold properties of a similar type (which can happen if the house is particularly unusual or has undergone an unusual conversion).
As a solution, the estate agent often opts for the minimum price with the excess in offers of, so they can gauge interest from interested parties. Or, there may be vastly differing property values which means the estate agent cannot pin an accurate price. Even industry experts have doubts sometimes!
Minimum Price Guarantee
Alternatively, a seller may simply have worked out the minimum they need for selling their house to get their desired figure after estate agent fees, conveyancing charges and more.
Asking for offers in excess of that minimum figure can be a “no nonsense” way to ensure the home sells for the right amount.
How Much to Offer for “Offers in Excess of”
It’s one thing to understand why buyers and estate agents use “Offers in Excess of” listings.
But where does this leave you as a buyer if you want to make an offer on an OIEO property?
Should you offer the listed price or a higher price? And if you should offer more, how can you decide what a sensible price would be or what the property is worth?
What to Consider
The only hard rule is that you should never make a lower bid. Beyond this, the right approach may depend on:
- Market trends – if there are more sellers than buyers in the local house market or the property you want is the only one of its kind, you may need to offer at least 5% above the guide price
- The property’s condition – the seller may be already have discounted the price to account for the works required
- Your own budget – there’s no point in offering more than you can afford to
- The seller’s position – some sellers may be looking for a quick sale, whereas others are willing to wait for the right price. Unfortunately, there’s no way to know this ahead of time.
Research and Preparation Are Key Before Making Offers on Properties
Research also plays a key role in maximising your chances of making the right offer.
Sites like Rightmove and Zoopla let you view recently sold properties, so you can see what properties similar to yours sold for. You can also check the asking price of similar properties currently on the market (and see what ones are Under Offer or Sold STC).
Attending an open house event or viewing for the property you want to buy can also give you a more comprehensive view of its market value and help you to make an offer. For instance, you might realise that the house needs repairs beyond what you can afford.
In addition to making the highest offer possible, you can make yourself look like a more attractive buyer in other ways.
Show you’re ready to purchase by having a mortgage offer (also known as a Mortgage in Principle or Decision in Principle), conveyancing solicitor and surveyor lined up. You can also consider offering a larger deposit or writing a personal letter explaining why you want their property.
Put Your Best Price Forward
“Offers in excess” listings can be confusing at first, but it’s simply a technique to help homes sell by asking for the minimum in the hopes of getting the best price possible.
There are different ways to approach the situation. You may decide to offer significantly beyond the minimum if it’s your dream house and you’re concerned about competition from other potential buyers, or you might simply offer the minimum if you think it’s a fair reflection of market value.
