What Does Offers in Excess Of Mean?
Understand the strategic implications of "offers in excess of" for both buyers and sellers. Navigate this common pricing phrase with clarity.
The phrase “offers in excess of” frequently appears in property listings, serving as a direct communication from a seller regarding their pricing expectations. This language indicates a strategic approach to marketing a property, signaling to potential buyers that bids below a certain stated amount will not be considered.
The Meaning of Offers in Excess Of
The term “offers in excess of” signifies that a seller is seeking bids at or above the listed figure. This is not a fixed asking price, nor is it a binding offer from the seller. Instead, it functions as an invitation for potential buyers to submit their own offers for consideration. The seller communicates a minimum acceptable price or a strong preference for proposals exceeding the specified amount.
This phrase distinguishes itself from a “guide price” or “offers in the region of,” where a seller might be open to negotiation. By using “offers in excess of,” sellers clearly indicate they will only entertain bids that surpass the initial price. This approach signals the seller’s expectation for competitive bids, especially when a property is in high demand or the market is strong.
Seller Motivations for Using This Phrase
Sellers employ the phrase “offers in excess of” for several strategic reasons. A primary motivation is to attract higher offers and potentially initiate a bidding process among interested parties. This strategy allows sellers to gauge the market interest in their property without establishing a rigid upper price limit. By setting a clear price floor, sellers manage buyer expectations from the outset, indicating their desired minimum while inviting more attractive proposals.
This approach is also useful when a property’s value is difficult to assess, such as due to unique characteristics or a lack of recent comparable sales. Listing with an “offers in excess of” price can draw a wider range of potential buyers, creating competition that helps the seller achieve a satisfactory sale price. This ensures that any accepted offer will be one the seller is content with, as lower bids are explicitly discouraged.
Buyer Considerations When Responding
When encountering a listing marked “offers in excess of,” buyers should understand that the seller is seeking the highest possible bid. Therefore, submitting an offer merely at the stated “excess of” amount may not be competitive enough. Buyers should aim to present their strongest offer from the outset, especially in a competitive market.
Thorough market research is important to determine a competitive and fair offer. This includes reviewing comparable sales of similar properties to understand recent transaction values. Additionally, buyers should ensure their offer includes clear terms and conditions, along with a substantial earnest money deposit. This deposit demonstrates the buyer’s serious intent and financial commitment.
While the “offers in excess of” phrase indicates a desired minimum, it does not guarantee a sale above that amount. Factors beyond price, such as financing and contingencies, can influence a seller’s decision. Securing mortgage pre-approval can further strengthen an offer by showing financial readiness to the seller.