How Much to Offer on a House With Offers Over

How Much to Offer on a House With Offers Over

Buying a property is one of the most financially and emotionally significant steps most people take, and navigating the language of estate agents can make it even more complex. One phrase that often causes confusion is "offers over". It appears frequently in property listings across the UK, particularly in Scotland and increasingly in England and Wales where the market is competitive. But what does it really mean and how much should you actually offer? Understanding the expectations behind "offers over" can help you make a realistic, confident and competitive bid without overpaying or missing out.

What "Offers Over" Really Means

When a seller lists a house with "offers over", it indicates that the stated price is the minimum they are willing to accept. It is not a fixed asking price but rather a starting point intended to generate interest and competitive bidding. In most cases, the seller and their estate agent hope to receive more than the guide price, sometimes significantly more depending on local demand. This format allows the seller to test the strength of the market while inviting buyers to put forward their best offer from the outset. Unlike properties listed with a fixed or guide price, there is no ceiling, and buyers are effectively encouraged to outbid each other.

Why Sellers Use "Offers Over"

Sellers may choose to list their property with "offers over" for several reasons. In fast moving markets, it creates a sense of urgency and competition among buyers. It can also lead to higher final sale prices when multiple parties become interested at the same time. In Scotland, "offers over" is standard practice, and blind bidding is often used, where all offers are submitted without knowledge of the others. In England and Wales, while not as formalised, the same strategy is increasingly common in desirable postcodes, particularly where supply is low and demand is high. Sellers and agents use the method to draw out serious buyers who are willing to act quickly and decisively.

How to Judge the Right Offer

Deciding how much to offer on a property listed with "offers over" can feel like guesswork, but there are practical ways to approach it. Start by researching the local market. Look at sold prices for similar homes in the same area within the last six months. This gives a more accurate picture than simply comparing with other listings. Consider the condition of the property and any work required. If the home is in move-in condition and located in a highly sought after neighbourhood, it is reasonable to expect competition and offer above the guide price. If there are issues that would require significant investment, a more cautious offer may be appropriate even under the "offers over" label.

Speaking With the Estate Agent

Estate agents can be a useful source of insight, even though they act on behalf of the seller. Ask if there has been much interest in the property and whether any offers have already been received. While they may not share precise figures, they will often indicate whether the seller is expecting substantially more than the listed price. In some cases, the phrase "offers over" is used quite conservatively, and an offer only slightly above the guide price may be enough to secure the property. In others, it is a signal that the seller is expecting a bidding war. The agent’s tone and feedback can help you pitch your offer more strategically.

Making Your Offer Stand Out

It is not just the amount of money offered that matters. Sellers also consider the strength of your position. A buyer who is chain free, has a mortgage in principle or is a cash buyer may be more attractive than someone offering more money but still waiting to sell their own home. Submitting your offer in writing with proof of funds, a solicitor ready to proceed and a clear outline of your readiness can boost your chances. In a competitive bidding scenario, sellers often choose the buyer they feel will get the deal done quickly and smoothly.

Risks of Overpaying and Valuation Issues

In your eagerness to secure a property, it is easy to overextend. Be mindful of what your mortgage lender is likely to value the property at. If your offer is significantly above market value and the lender down-values the property during the valuation stage, you may struggle to borrow the amount needed. This can lead to delays, renegotiations or the deal falling through. Always consider the maximum amount you are willing and able to pay, based on both emotional attachment and financial realism. If you are determined to win a bidding war, ensure you have the means to cover any difference between the agreed price and the mortgage offer.

The Role of Sealed Bids

Some properties listed with "offers over" are sold by sealed bids. This means all interested buyers are invited to submit their best and final offer by a fixed deadline, often in writing and accompanied by proof of funding. Once the bids are submitted, the seller chooses the offer they prefer. This method is more common in Scotland but is also used in hot markets elsewhere in the UK. When submitting a sealed bid, think carefully about how much the property is worth to you. Avoid rounding off your offer to neat figures, as many buyers default to that, and consider what extra you might be prepared to pay to secure the deal without regret.

Investment Potential and Long Term Value

For investors and property developers, "offers over" scenarios present both risk and opportunity. If the property has development potential or scope for renovation, offering above the guide price may still represent good value in the long term. However, always factor in renovation costs, planning permissions and resale expectations. If the local market is rising steadily, paying over the guide price may result in healthy capital appreciation. For those buying their forever home, the emotional value may justify stretching the budget. Either way, ensure your offer reflects not only current worth but long term plans and financial resilience.

Final Thoughts

Navigating a property listed with "offers over" can feel like walking a tightrope between ambition and prudence. The key is to do your research, understand the local market and bid with both head and heart. In many cases, a modest increase over the guide price can secure a deal, while in others, serious competition means only the highest bidder wins. Make sure your finances are in order, your position is strong and your offer is one you can stand behind with confidence. Whether you are buying your first home or adding to a portfolio, knowing how to approach "offers over" properties can give you the edge in a crowded market.