The Old Timer - Posted - 07/15/2014:  14:39:14

I'm noticing more Classifieds with a price and the added phrase "OBO" (Or Best Offer).  I see it a lot on EBay too.

What is the general understanding of the meaning of OBO?  Usually when selling houses it means a higher bid will take precedence over someone willing to buy at the stated price (what would generally be called a Seller's Market).

On the other hand does it mean if no one is willing to pay the advertised price but makes a lower, private offer, that whoever offers the most even if it's not enough, will get the item?  Obviously this invites a lot of lowball offers, but the implication is there that SOMEBODY is going to take the item home, like an auction.

I'd like to know if there is a general understanding.

Thanks.

ScratchJohnson - Posted - 07/15/2014:  14:44:11

I assume O.B.O to mean the best offer given lower than the listed price. Being an advertisement, the first person to offer the listed price should get the item and there is no opportunity to bid over that person. I also never assume O.B.O to be a binding agreement. For example if you don't get your asking price on something and the "best offer" is just some knucklehead offering 1/4 of the asking price, I don't see O.B.O as being binding. It is normally understood to mean best "reasonable" offer.

Baltimonkey - Posted - 07/15/2014:  14:51:21

"Best Offer" simply means that the seller accepts offers and is willing to negotiate.  It in no way means that the best offer has to be accepted.  The seller may counter, accept the offer, or walk away if a low ball offer makes the negotiation not doable...

roadstar75 - Posted - 07/15/2014:  14:51:43

Watch how they negotiate on PawnStars, that might help.  It have given me a new confidence in being able to offer a lower price than I would have in the past, you can always come up if you really want the item.

Edited by - roadstar75 on 07/15/2014 15:03:39

pickNgrin - Posted - 07/15/2014:  14:58:37

"Firm" means they will not take less than the asking price, so don't even ask. 

"OBO" means they are very willing to negotiate a lower price.

Neither "firm" nor "obo" means they might be willing to negotiate a lower price, but you will have to feel them out.  

flailing - Posted - 07/15/2014:  15:20:04

I always assumed it meant the seller was willing to negotiate their asking price - but a few times on the BHO I have offered a slightly lower price (not lowballing) only to be told they wanted at least their asking price, so I am not sure anymore. 

About a year ago a BHO member was selling a bridge with an asking price of $25 OBO, and I offered $20.  They responded and asked me if I could read (they wanted $25).  Perhaps they were hoping people would bid higher?

PickaFive - Posted - 07/15/2014:  15:34:10

 Here's my take on the issue for what it's worth:

OBO means that the seller is willing to entertain a lesser offer prior to a sale being made at the listed price. People stating, "No low ball offers, please." should possibly alternatively use, "Offers close to my asking price will be considered." If the seller agrees to accept a lower offer the sale is complete. The banjo is no longer for sale at any higher price. It is sold pending receipt of payment.

Outside of classified advertisements, the submission of higher than asking price bids usually occurs primarily in an auction sale. Someone placing an advertisement saying, "Will accept the highest price submitted by 5:00 PM EST." is conducting an auction rather than a conventional classified advertisement.

pastorharry - Posted - 07/15/2014:  15:50:11

OBO generally means, "You are free to make an offer", and "I am free to refuse it".

Fathand - Posted - 07/15/2014:  18:44:36

"Or Best Offer" literally means that if it does not sell at asking price it will be sold for whatever the best offer is as Old Timer has surmised. However it typically means that offers will be entertained. Since there is no time limit given in most ads, the seller can hold out for whatever offer they like as long as they want and will not be forced to sell it for a lowball price.

The Old Timer - Posted - 07/15/2014:  18:50:23

No one seems to think that it is a statement that an offer higher than someone who wants to pay the asking price, could win out. Correct?

lightgauge - Posted - 07/15/2014:  18:50:42

I saw one recently that confused me. "Price is firm " and then said OBO. I wondered then if everyone knew what that meant?????

kmwaters - Posted - 07/16/2014:  07:33:37

This is all so seller dependent that it is difficult to put much stock in any of it contained in a listing. You will never know if there were any offers, and you will never know if you tendered the highest or best offer. You also rarely know the deadline for offers. So it's back to square one, i.e. offer and acceptance.

opotable - Posted - 07/17/2014:  02:49:11

OBO is just another of those small ad clichés that some people will just put in their text even when they have no idea what it actually means to an experienced buyer of used items.

kinda like the ads for a VW bus with "frame off resto", or obviously used classic auto parts listed as "NOS"............

3 finger ninja - Posted - 07/20/2014:  07:33:02

Who know, the best offer may include a trade in and some cash.....generally means open to negotiation.
If its an auction then yeah, the low baller may very well get the prize if they bid the min and no one else bids......but with private sellers, we dont have to accept any offer we dont like.

eagleisland - Posted - 07/20/2014:  08:58:56

quote:

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Originally posted by lightgauge

I saw one recently that confused me. "Price is firm " and then said OBO. I wondered then if everyone knew what that meant?????

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Pretty clear that the seller didn't know what it meant.

the-fish - Posted - 07/20/2014:  10:00:10

it means that the item for sale WILL sell for less than the advertised price

jbell - Posted - 07/20/2014:  11:51:44

quote:

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Originally posted by lightgauge

I saw one recently that confused me. "Price is firm " and then said OBO. I wondered then if everyone knew what that meant?????

---

Perhaps they understood it to mean "or better offer".  In other words, they were willing to accept a higher price then asked. 

Bill Rogers - Posted - 07/20/2014:  13:40:17

No advertisement promises a sale at any price.  Legally, an ad is an invitation to make an offer; the advertiser may choose to accept or reject any offer, even one at full price.  "OBO" can go either way, but it implies no guarantee of a sale at any price.  I know if I sold something OBO, and immediately got a full price offer, I'd hold out a while for a better offer because such a rapid response at full price would make me wonder "Am i selling too cheaply?"