At VMH we are often asked “what is the difference between offers over, offers around and fixed price properties?”
Below we have detailed the meaning behind each asking price strategy.
Within the current housing market in Edinburgh (& the Lothians) it is common to see properties advertised for “Offers Over” X amount. But this isn’t the only pricing strategy when selling your home. Here we have set out the basic rule of thumb for the top 3 asking price strategies in Edinburgh.
- Fixed Price – this generally means that the seller is willing to accept the first offer made at the given price. On the plus side, this can lead to a fast sale. On the down side, it reduces the chance of competition, and consequently the willingness of buyers to offer more.
- Offers Over – this indicates that the owner is looking for a price higher than the advertised price. The price advertised is usually pitched lower than the Home Report value. On the plus side, this system can greatly benefit the seller if competition is generated around the sale. When a number of formal “Notes of Interest” are registered in a property a “Closing Date” may be set. On the down side, this system can be vague about the true expectations of the property price. Some buyers may be worried that during the ‘blind bidding’ process the price might exceed what they can afford.
- Offers Around – this system became more prominent when Home Reports entered the market in 2008. On the plus side, this method clearly states the price range at which the owner is willing to sell at. The asking price generally coincides with the Home Report valuation. On the down side, it might not attract as many buyers as the “Offers Over” system as the asking price is pitched slightly higher from the outset.
Making the right property choice means doing your homework before you fall in love with your next home, CLICK HERE to view our buying FAQs.