When searching for a property within your budget you've likely come across variations of these terms: Asking price, guide price, offers in the region of and offers over.
While they sound alike, they can have a significant impact on the effectiveness of the offer you make. This is because they indicate if the buyer is looking an exact price or if they are open to negotiation.
Asking price explained
An asking price is straightforward - It's the amount of money the buyer is looking to secure for their property. They'll likely only be open to offers close to this figure.
However, every seller is different, so depending on their circumstances they may be open to a lower or higher offer.
Offering more than the asking price is always appealing to a buyer and could increase your chances of securing the property.
While a low ball offer could save you some cash, you run the risk of putting the sellers off if your offer is too low.
It's safe to assume that a seller listing with an asking price is less open to negotiation, so if you are serious about the property you should make offers around or above the asking price.
What is a guide price?
A guide price is the amount the seller wants to secure for their property, but suggests they are more open to negotiation.
Sellers who are more open to a range of offers may use a guide price. There could be other reasons however, such as a disagreement between the seller and the estate agent over how much the property is worth leading to a guide price rather than an asking price as a compromise.
Most sellers want the most amount of money possible for their home, and as such offering more is likely more effective. On the contrary, some motivated sellers may be looking to secure a buyer quickly, so a lower offer can also be effective - it just depends on the seller's motivations.
If you're looking at a property on the Your Move website and are unsure of how much to offer, you could contact the branch in the local area to ask for advice.
A property listing asking for 'offers in the region of' is quite similar to a property listed with a guide price. It indicates the seller is open to negotiation, potentially more so than if they had listed with a guide price.
What does offers over mean?
A seller who has listed their property asking for offers over is looking for more than the listed price.
Asking for offers over a certain price is an attempt to secure a higher offer for the property and make it clear to potential buyers that offers need to be higher for serious consideration.
While asking for offers over doesn't necessarily mean the seller wouldn't accept a lower offer, it is much less likely that they would and you risk souring relations if your offer is too lower.
Once again, it depends on the seller's motivations and circumstances, but it's safe to assume the seller wants more than the listed price, so you should make higher offers if you are serious.
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Your Move E-Marketing Executive
