House-buying jargon explained
Lovely as it would be for estate agent sites to have an Amazon-style ‘Buy It Now’ button by the listed price, working out how much you’ll actually pay for a house can be a confusing process. Let’s break down some of the unfamiliar abbreviations and explore what actually determines the price. ‘Offers in the region of’ (or ‘OIRO’) is usually an indication there’s a bit more flexibility than with a listing which just has a price. The seller would like to get the listed amount (or ideally more) but might well be open to a lower offer, so don’t be afraid to try. ‘Guide price’ is sometimes used in the same way as ‘OIRO’, though you’ll need to check the listing as this could also mean the property is being sold at auction. ‘Offers in excess of’ (or ‘OIEO’) can work in a couple of ways. Sometimes it really is the lowest amount the seller is willing to accept. That said, if you aren’t taking the mickey and you’re in a strong buying position, it won’t do any harm to offer less and see what happens. Sometimes, though, ‘OIEO’ is estate agent code for “The seller thinks this house is worth more than I do.” In that case, if you’re happy to risk somebody else beating you to it, you may want to keep an eye on the listing. ‘Price on application’ or ‘POA’ usually sparks the old joke about “If you have to ask how much, you can’t afford it.” With houses, though, it’s usually a sign that the seller is concerned about time-wasters
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just interested in nosing round the house. Don’t be surprised if you are ‘vetted’ before you can arrange a viewing. In all cases, the key is to remember that the listed price just tells you about the seller’s perspective and it takes two sides to make a deal. Before making an offer, you should look at listings for similar properties in the area (and recent prices for sold properties) along with your own finances and mortgage options. You’ll come across all manner of theories about how much to offer and how to deal with counteroffers. Perhaps the best guideline is that when you make your initial offer, you should be uncertain about whether it will be accepted. If you ‘know’ it’s definitely going to be rejected, you could risk being seen as a time-waster and lose out to a more realistic buyer. If you ‘know’ it’s going to be accepted, you risk being left with a niggling feeling you’ve overpaid. Once you’ve agreed a price, the seller will need to fill in a Property Information Form that details exactly what fixtures and fittings are included in the sale price and which they are offering to sell for an additional fee. Avoid any suggestion of paying a clearly inflated price return for keeping the house sale price under the stamp duty threshold. This is an outdated ‘dodge’ that will now attract the unwelcome attention of HMRC.
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