Offers over vs. Guide Price

[omniflow]

What's the thinking on listing a house as offers over £1,400,000 rather than a guide price of £1,500,000?

There's a coastal house right on the beach in Lyme Regis, it's not something we're even remotely considering as we can't afford it, but we are keeping a careful eye on lots of coastal properties.

It popped up on Rightmove about 2 - 3 months ago with a guide price of £1,500,000 and then yesterday it popped up again as offers over £1,400,000. If no one bought it at £1.5million - maybe offering £1.45million, then they're not going to buy it at £1.4million plus a bit more - e.g. £50,000.

Am I missing something here?

[popegregory]

You’re not missing anything - no one wanted it at £1.5m and if no one wants it at £1.4m and ten it’ll either vanish as they keep it for a bit or reappear at £1.3m

[DKL]

You are really buying the position not the house there. But there was a large landslip just down the road earlier in the year so that won't help anything. It's very steep. The Hix restaurant has closed and been replaced. Whatever you think of him it was a draw.
You are out of holiday let price there (mostly) so I tend to find that whilst small houses (2 bed - 2 in Eype sold for 450 and 550) sell very well (maybe less so with the council tax thing) 7 figure houses aren't as affected by the coastal thing in quite the same way except for a few places.
A house sold in Seatown for 2mill fairly quickly but it was a much better house. That really is all the money for a 1300sq ft house so it could be there a while.

[PhilboSE]

It’s worth exactly what someone is prepared to pay.

[ChocolateFrog]

£123k tax for a second home owner.

At that price point that must be a factor.

[Wills2]

Quite often a estate agent will over value the house to get the instruction they then start to walk the vendor back as it becomes clear they are out of step with the market, same with those that offer a private unlisted sale "we've got buyer lined up for this" after while it's put on the market.

The key is to get the instruction especially in a quiet market and then try and work it from there.

[PhilboSE]

It’s worth exactly what someone is prepared to pay.

[Sheepshanks]

omniflow said:

What's the thinking on listing a house as offers over £1,400,000 rather than a guide price of £1,500,000?

There's a coastal house right on the beach in Lyme Regis, it's not something we're even remotely considering as we can't afford it, but we are keeping a careful eye on lots of coastal properties.

It popped up on Rightmove about 2 - 3 months ago with a guide price of £1,500,000 and then yesterday it popped up again as offers over £1,400,000. If no one bought it at £1.5million - maybe offering £1.45million, then they're not going to buy it at £1.4million plus a bit more - e.g. £50,000.

Am I missing something here?

I'm struggling to imagine this happens at higher price levels, but at more ordinary prices, an EA told me people won't look at properties listed above their budget

There's also the matter of trying to hit search price ranges - ie OIEO of £300K catches people who have £300K as their lower limit and same for people who have it as their max.