Differences Between “Offers Over” and “Fixed Price”
Offers Over
• The “Offers Over” system is the most common pricing strategy in Edinburgh and the Lothians, especially in a strong seller’s market where demand exceeds supply.
• Properties marketed as “Offers Over” are typically listed at a price slightly below the Home Report valuation to attract more interest and encourage competition among buyers.
• Buyers are invited to submit bids higher than the advertised price. If there is significant interest, a “closing date” is set, and all interested parties submit their best and final offers in a sealed bid process. The seller then chooses the most attractive offer, which is typically above the Home Report value.
• This approach benefits sellers by potentially driving up the sale price through competitive bidding. However, there is uncertain for buyers, who do not know what others have offered and may need to offer significantly more than the asking price to secure the property.
• Properties marketed as “Offers Over” in Edinburgh sell for varying amounts over the asking price, depending on multiple factors, from general market conditions to level of presentation, to location etc.
Fixed Price
• “Fixed Price” marketing means the seller is generally willing to accept the first offer at the stated price, assuming other terms (such as date of entry) are agreeable.
• The Fixed Price is usually set at or near the Home Report valuation and is intended to signal a straightforward, non-competitive sale. This approach is often used when a property has been on the market for a time period longer than the seller would like, or when the seller wants a simpler or quick sale.
• Buyers know exactly what price will secure the property, reducing uncertainty and the risk of being outbid. Although it is rare, it is not impossible for properties marketed at a Fixed Price to sell for more than that amount.
• Fixed Price marketing is also common for new-build properties, where the price is set by the developer and there is little expectation of competitive bidding.