Wednesday October 19th, 2016 04:27 “Offers Over” – why not just cut to the chase?

If you’ve browsed realestate.com.au recently, you will have seen lots of properties listed as “offers over”. You might be wondering why we do this rather than just applying a fixed price.

Why we do it?
Ultimately “offers over” exposes more people to your property online, if used the right way —let’s not forget that some 90% of our buyer enquiry comes through these channels.

For buyers, realesate.com.au has set price bands when searching (ie: $400k to $450k and $450-$500k). Generally, we recommend using ‘offers over’ when you’re on the cusp of a search band.

For example, if you are aiming for a price of $460k for your home. We would list it as ‘offers over $450k’ on realesate.com.au – your property will display for buyers browsing the $400-$450k price range as well as those browsing $450-$500k.

This exposes your property to more people and gets more people to your open (people who may not have considered your property before). Even if the price is slightly out of their price range – they showed up! It’s your agent’s job from there!

We recently listed a duplex in Fitzgibbon as “offers over $300k”, a move designed to encourage a larger subset of buyers to visit the property. The home sold for $315k—an impressive figure given that the highest previous sale for a similar home in the area was $290k!

Misuse of ‘offers over’…
In my experience many agents use ‘offers over’ to avoid the uncomfortable price discussion with their owners. It’s a way for them to list the house at what they (the agent) think it’s worth without agreeing on a clear price expectation with the owner.

Can you make an offer under on an ‘offers over’ property?

Our agents will always have a firm price that the owner is expecting. After all, the first question at the open is ‘how much’?

Buyers should have the capacity to buy at or above the price indicator. Although they can open negotiations with a lower price, almost always the property will sell at or above the indicator.

When we don’t use it…
It’s not effective if your price expectation is not in line with the market.

It’s also not as effective if your ‘offers over’ price sits in the middle of a search band. A property listed as “offers over $420k” will only display for buyers searching $400k-450k”. Of course there may be some exceptions here, but this is a common mistake many agents make!

And last but not least, ‘offers over’ pricing is also useful for auctions or when agents are a little unsure on the market value (ie: for a unique property).

So if we recommend “offers over” on your next houses for sale Aspley rest assured and take it in your stride!

To view property Aspley visit our web site. To find out more about Justin Watt, owner of Watt Realty and previous owner of Harcourts Aspley click here.

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