Buying or selling a property can sometimes feel like navigating a maze of confusing terminology, one term you might encounter is “offers in excess of”. But what does this phrase mean, and how does it impact your property transaction? Let’s dive in and jargon-bust this term, so you can make more informed decisions during your property journey.
The meaning of “Offers in Excess of”
This term is used in the property market to indicate that a seller is looking for offers above a specified price. This price, typically set by the seller or their estate agent, serves as a minimum starting point for potential buyers to submit their bids.
Why it’s used when selling property
There are a few reasons why sellers and agents might use the “offers in excess of” when marketing a property:
Attract more interest
Setting a lower starting price can encourage a wider range of potential buyers to express interest in the property. This can result in more viewings and ultimately, a higher final sale price.
Encourage competitive bidding
By encouraging multiple offers, sellers can create a sense of competition among buyers, which can drive up the final sale price.
Gauge market value
If a seller is uncertain about the market value of their property, they might use the “offers in excess of” approach to see how much interest the property attracts at various price points. This can help them better understand the property’s true local market value.
When ‘offers in excess of’ is used
“Offers in excess of” is most commonly used in the following situations:
When there is high-demand markets: In areas where demand for properties outstrips supply, using the “offers in excess of” approach can help generate more interest and higher offers.
Unique properties: If a property has unusual or highly sought-after features, using this approach can help the seller find a buyer who values these unique aspects and is willing to pay more for them.
Alternatives to “offers in excess of”
There are a few other alternatives the property industry uses instead of “offers in excess of” which are worth being aware of and knowing the difference:
This is when the seller sets a specific price and is not open to negotiation.
A guide price provides a suggested starting point for offers, but the seller might be more open to accepting offers below the guide price.
A property can be sold at an auction, where buyers submit bids in real-time, and the highest bidder wins.
Is it fair to use ‘offers in excess of’?
Using “offers in excess of” when marketing a home can be a fair strategy for both buyers and sellers. As long as both parties understand what it means the process and the potential implications.
For sellers, it can help maximise the property’s sale price. While for buyers, it can provide an opportunity to secure a property in a competitive market.
It’s essential for buyers to conduct research and understand the true market value of a property before submitting an offer.
Need more help?
Now that we’ve busted the jargon surrounding “offers in excess of,” you can confidently navigate the property market with a better understanding of this term.
Remember, whether you’re a buyer or seller it’s always a good idea to consult with a professional, such as an estate agent and mortgage advisor, before making any significant decisions related to property transactions.
Happy house hunting!
Last Updated: November 22nd, 2023