Does OIEO Mean It’s For Sale?

You’ve managed to find your dream property for your first home purchase.

But the brochure the agent handed to you has a word next to the price tag – “OIEO”. It’s important to recognise what OIEO means and how it can affect the offer you put down on the home.

What does OIEO Mean?

OIEO stands for Offers In Excess Of.
It’s the estate agents way of saying bluntly – ‘don’t waste our time with offers below this price’.
It’s normally mentioned next to the price of the property e.g. OIEO £200,000.

When does OIEO get used?

Agents are not normally big fans of having an OEIO next to the price of a property. It acts as a push away for buyers who are very close to the budget of the house (e.g. asking price of £250,000 but their budget is £180,000) but who can’t quite make the full price offer. Agents would love to have these buyers view the home as they can push more offers to their clients.

But there is a big influence on how an agent behaves – the client.

Despite providing their client with a list of data on what similar homes are selling for in the area, some sellers are adamant to only sell their home for a minimum price, no matter what the market conditions. This is when the agent has to put OIEO into the property listing.

Buyer doesn’t trust the estate agent

Some buyers have a cynical view on estate agents, and are concerned that they will try to sell their property below market value for a quick sale. It’s true that not all estate agents behave to the best standards. Some agents will be more shrewd, but for the majority they are looking to build a good name in the market.

Agents also normally work on a percentage fee, meaning a higher selling price for them means a higher commission. So in this way they are incentivised to try to get the highest price.

Attached Buyer

Other buyers have a strong emotional attachment to their home (which can be a big disadvantage) which clouds their judgement on the value of their property. No amount of numbers and evidence will convince them otherwise.

For these buyers, they have a hard limit on what they will sell for, so the OIEO price is set at this level.

Hard to Value Properties

There are also some properties that have very unique elements (e.g. they were lived in by a famous person, are part of a historic building or come with unique features like an enormous garden). These homes are less common, and so there are fewer properties selling with similar characteristics.

The end result is that the seller is usually trying to sell for a price that is higher than other similar homes on the market to value the uniqueness of a property. In order to avoid wasting anyone’s time the agent lists the property with an OIEO tag.

These kinds of properties can be a danger for buyers if they end up overpaying. You might be valuing a loft conversion at a time when they are really popular, but as trends change this extra feature might not be as desirable for the next buyer.

Can I still offer below the OIEO price?

Absolutely. But it’s more likely that your offer will be rejected. If a seller wants to dig their heels in on price there usually isn’t much that you can do to sway them.

I can’t afford the asking price. What can I do?

The best mentality is as follows: Set your price limit, make the offer, move on.

Set Your Price Limit

It’s very easy to get attached to a home, but remember that moving above your target price range can cause big problems in the future if you are unable to manage the mortgage payments. It’s best to set your absolute limit before starting a negotiation with a seller

Make The Offer

You want to present yourself to the seller as a confident, experienced buyer (which no first time buyer ever is). Ensure you follow our key steps to making an offer on a home.

Move On

We can’t stress this enough.

Getting hung up on one property can cause disappointment if your offer gets rejected. Getting hung up on a property that you can’t afford is even more painful. As the buyer in this position, you need to get the context of the situation in your mind. A seller never wants to drop the price of their home. And with a property having an OIEO price tag, this makes the challenge even more difficult.

Could the OIEO tag come off at a later date?

As with most things in life, everything can change.  

Keep the property bookmarked on rightmove/zoopla/your web browser. If you are still looking and making offers in the weeks/months that follow it is worth periodically checking back on the properties you have offered on.

Homes with OIEO tags can be changed later on. And if the price does get reduced agents usually don’t make the effort of ringing around to people who have previously made an offer on the home – so make sure you check back.

Watch Out For Sneaky Tactics

Sometimes the OIEO tag is used in a deceptive way to get buyers interested in a property.

Unfortunately this practice can and does happen.

The best way to avoid incidents like this is to investigate the following:

• How long has the property been on the market for?
• What was the original price on listing?

This should give you some indication of what tactics the buyer is employing. If an OIEO tag is appearing on a property that has been reduced recently, don’t be surprised if the seller is still targeting the original asking price.

If the property has only been on the market for a short period of time, the seller is unlikely to have adjusted their expectations about the price (unless they are a forced seller – which if they are you should be looking to take advantage).

If you are unable to find this on the usual websites, ask the agent. The rules regarding what an agent must tell you have become more strict in recent years – which is helpful for buyers.

Is This Different To OIRO?

Yes. This is very different.

OIEO indicates the seller is willing to consider offers above the original asking price. So if you see a home listed as OIEO, the seller is hoping for bids higher than what they initially asked for.

With OIRO, the seller is open to offers around the original asking price, but not necessarily right at it. If a home is OIRO, the seller will look at bids close to, but not necessarily matching, the asking price.

Read more on how to offer on a house under OIRO.

Our View On OIEO

The property world is filled full of offers that are too good to be true (like short leases, structural problems and nightmare neighbours). The fact that a seller employs so many external parties to feed into the buying process usually means you get what you pay for (i.e. if it’s cheap there’s a reason for it).

That being said, there continues to be many people who are having to sell their home in a rush. This can override the logical position of waiting for a good offer.

If you see an OIEO home and like the property, it is ALWAYS worth submitting an offer (even if you think it is insultingly low). Agents have to pass on all offers to the seller – and it might just be your lucky day even if there is an OIEO tag.

Follow the tips above (Set Your Price, Make Your Offer, Move On) and you’ll save yourself from a lot of headaches.