What does OIEO (Offers in Excess Of) or OITR (Offers In The Region of) mean?
How about getting a good start on that property ladder
Terms used in property investing can be a little overwhelming sometimes, AND there’s a whole industry to learn about before considering the price… that’s where the acronyms OIEO (offers in excess of) or OITR (offers in the region of) come in useful to you.
‘Offers in excess of’ come by frequently in property investing as many estate agents will DRIVE the idea that you need to invest more than what’s advertised, this is where you may whittle-down and assess what it does mean when you respond to your estate agent with an asking price.
Let’s explore ways you can take advantage of the market-value with your asking price.
3 Essential Reasons as to Why You Will Need to put in an Asking Price:
1. Your Agent May Not Always Have Your Back, Unfortunately 😔
The agent has entitlement to the property seller and when you are buying an investment property, you become involved in the marketing strategy conducted by the estate agent.
Therefore, agents use OIEO in place with the marketing strategy to reel-in more potential buyers, which will require your stamp on the price; as they could be asking for more than the actual house price.
2. To Get Ahead of the Game
An open house event or auction can be conducted to spark a bidding-war to market the house at a much more competitive price, i.e. usually below the Home Report valuation.
For example, if the property price under the Home report valuation was £200,000 your agent will market the value as £185,000 OITR or £185,000 Offers in Excess Of, to attempt selling a potentially lower market value property for a higher price.
3. You Already Have The Upper-hand... if this happens!
⦾ The agent will list a price that the property seller needs to sell for.
⦾ The agent has to take multiple factors into consideration:
From here, they will use these factors accordingly to competitively price the property in order to attract more potential buyers. However, if the property has been on the market for over 3-4 months, the price can be reduced.
The OITR can also determine the price when matching market value price to similar properties for sale in the local area; especially in the future.
This is where you rub your hands surreptitiously!
So Now That You Know What OIEO and OITR is, What Do You Do Next?
Make a firm Decision on What You Want to Pay
Investing in a property literally requires you to make the right moves because you don’t want to be told what to pay; when you could pay less (which could stop you losing 10,20, or even £30,000+)...
In the seller’s case, property owners need support with decision making, and agents can sometimes blur the decision-making process, potentially ruining the best deal on what to offer you.
But this isn’t the end of the line for you.
It’s quite the opposite,
Talk to your estate agent, get clarity on your purchasing price decision by asking the 2 questions.
Here’s an example, if the property owner has expectations of £185,000 after being on the market for over 4 weeks, it can still succeed in being purchased, ask yourself and the agent:
Question 1: Can I pay ‘in excess’ of what the expected price is?
Question 2: Can I give them the price I’m most comfortable with; all factors considered?
If the answer is YES, that puts you in control as a property investor.
If the answer is no, remember, remember, remember; stick to the numbers that were analysed to avoid going over budget.
The asking price and the two questions above will reassure a sound investment-choice in offer of the property.
That’s where being an informed investor is essential and gaining access to the right resources can assist you to get the best deals in the property market.
You can find out how to get the best deals in the property market by instantly downloading this free 4-part video series
Now that you understand What Does OIEO (Offers in Excess Of) or OITR (Offers In The Region of) means? Remember to share this with someone who you believe will find this useful too.
⦾ Join the Premier Property Education community group by going Premier Property Education Facebook Community page
If you liked our content or have any questions, please leave a comment below, and subscribe to our Facebook page Premier Property Education Facebook Community page, and speak to us on our 24hr chat with Kam anytime, we look forward to hearing from you!