Buyers over

3 key takeaways

• The “buyers over” pricing strategy sets a minimum acceptable price and invites buyers to offer more.
• It can generate competitive bidding, potentially driving the final sale price higher.
• This strategy is often used in competitive real estate markets to attract multiple offers.

What is “buyers over”?

“Buyers over” is a real estate pricing strategy where the seller specifies a minimum price they are willing to accept for their property. This price acts as a starting point, and prospective buyers are encouraged to submit offers above this minimum amount. The primary goal of this approach is to stimulate interest and competition among buyers, potentially leading to a higher final sale price.

For example, if a property is listed as “buyers over £300,000,” it means the seller is looking for offers starting at £300,000, with the expectation that the final offer will be higher.

How “buyers over” works

1. Setting the Minimum Price: The seller, often in consultation with their real estate agent, determines the minimum price based on factors such as market conditions, property value, and desired sale outcomes.
2. Marketing the Property: The property is marketed with the “buyers over” price, highlighting the minimum acceptable offer to attract potential buyers.
3. Receiving Offers: Interested buyers submit their offers, typically higher than the specified minimum price.
4. Negotiation and Sale: The seller reviews the offers and may engage in negotiations with the highest bidders to achieve the best possible sale price.

Advantages and disadvantages of the “buyers over” strategy

Advantages:

• Competitive Bidding: Encourages multiple buyers to submit offers, creating a competitive environment that can drive up the sale price.
• Attracts Serious Buyers: By setting a minimum price, the strategy filters out lowball offers and attracts buyers who are serious and prepared to meet or exceed the minimum price.
• Transparency: Provides a clear starting point for buyers, helping them understand the seller’s expectations.

Disadvantages:

• Potential Buyer Frustration: Some buyers may be discouraged by the competitive nature and the possibility of being outbid.
• Market Sensitivity: The success of this strategy depends on market conditions. In a buyer’s market, there may be fewer interested parties, reducing the effectiveness of competitive bidding.
• Uncertain Outcome: While the strategy aims to achieve a higher sale price, there is no guarantee that offers will significantly exceed the minimum price.

Real-world application

The “buyers over” strategy is often employed in competitive real estate markets where demand exceeds supply. For instance, in cities with high property demand, such as London or New York, sellers use this approach to maximize their sale price by leveraging buyer competition.

In practice, a property listed as “buyers over $500,000” may receive multiple offers ranging from $510,000 to $550,000 or more, depending on buyer interest and market dynamics. The seller can then choose the most attractive offer, potentially engaging in further negotiations to secure the best terms.

Related topics

• Real estate pricing strategies
• Auction sales
• Market value assessment
• Competitive bidding
• Real estate negotiations
• Seller’s market vs. buyer’s market

Understanding the “buyers over” strategy can help both sellers and buyers navigate the real estate market more effectively, ensuring that sellers can maximize their returns while buyers can make informed and competitive offers.