What is a Cheeky Offer on a House? Feat. image

What is a Cheeky Offer on a House?

Understanding Cheeky Offers

A cheeky offer is when you put in a bid for a property that’s noticeably lower than the asking price or its market value. While it can be a tempting way to snag a deal, it’s a delicate balancing act. Make an offer that’s too low, and you could risk irritating the seller, which may lead to a lost opportunity altogether.

This strategy isn’t suitable for every property, particularly in a competitive market where the seller is likely to receive several offers. In a buyer’s market, where there are more properties available than buyers, sellers may be more open to considering lower offers. A more sensible approach is often to base your offer on the property’s actual value, which can still leave room for negotiation but shows you’re serious about buying.

When to Make a Cheeky Offer

A cheeky offer might work in your favour if the seller is in a situation where they need to sell quickly. Most sellers expect to receive offers close to their asking price but may be willing to negotiate for a quick sale. This could be due to financial difficulties, personal reasons, or simply a desire to move on as soon as possible. In these cases, they may be open to accepting a lower bid just to secure a quick sale.

However, it’s important to approach this tactfully. If the seller is under pressure, showing an understanding of their situation and being ready to explain why you’re offering a lower price can help. This approach can make your offer more acceptable, even if it’s below what they were hoping for.

How to Make a Cheeky Offer Effectively

Before making a cheeky offer, it’s important to be well-prepared. Start by researching the local market and understanding the property value to make an informed decision. This will help you make an informed decision about how low you can reasonably go without completely alienating the seller.

toy house sitting on moneyTiming is also key. If the property has been on the market for a while, the seller may be more open to considering lower bids. However, in a hot market where homes are selling quickly, a cheeky offer may not even be entertained. Choosing the right moment can increase your chances of success.

When presenting your offer, think about how it will come across. A well-thought-out explanation, especially if it’s backed by facts such as the property’s condition or market trends, can make a lower offer seem more reasonable. Sellers are more likely to engage if they feel your offer is based on logic rather than just trying to undercut them.

If the home needs repairs or updates, that can be another angle to justify a lower price. Make it clear that your bid reflects the costs you’ll incur after purchase.

Finally, be prepared for a negotiation. A cheeky offer often opens the door to back-and-forth discussions, so knowing your limits and being ready to adjust your bid can help seal the deal.

Success Rates of Cheeky Offers Based on Market Conditions

Market Condition Offer Type Success Rate (%) Average Discount Achieved (%)
Hot Market Cheeky Offer 20% 2-4%
Hot Market Close to Asking Price 80% 1-2%
Balanced Market Cheeky Offer 45% 3-5%
Buyer’s Market Cheeky Offer 70% 5-10%

The Role of Estate Agents in the Process

Estate agent Estate agents play a crucial part in the buying process, as they are legally obligated to present every offer to the seller, no matter how low. This means that even if your offer is below the asking price, the seller will still be informed of your bid. Having a secured mortgage offer can signal to the seller that you are a serious buyer, increasing the chances of your offer being considered.

In addition to handling offers, estate agents can provide useful guidance on the local market and help you assess whether your bid is reasonable. They often have a good sense of the property’s value and the seller’s circumstances, which can help you decide how much to offer. Their experience also comes in handy during negotiations, as they can act as a go-between for both parties, helping to keep discussions on track.

By working with an estate agent and making sure your offer is well-presented and justified, you increase the chances of having your bid seriously considered, even if it’s lower than expected.

Market Conditions and Their Impact on Cheeky Offers

market stock tickMarket conditions play a significant role in determining the success of a cheeky offer. In a buyer’s market, where there are more properties available than buyers, sellers may be more open to considering lower offers. This is because they may be eager to sell their property quickly and may be willing to negotiate on price.

On the other hand, in a seller’s market, where there are more buyers than properties available, sellers may be less likely to consider cheeky offers. This is because they may have multiple offers on the table and may be able to choose the highest bidder.

In addition, market conditions such as the time of year, the location of the property, and the overall state of the economy can also impact the success of a cheeky offer. For example, if the property market is slow during the winter months, a seller may be more willing to consider a lower offer in order to sell their property quickly.

It’s also worth noting that the property’s condition, age, and amenities can also impact the success of a cheeky offer. For example, if the property is in need of significant repairs or renovations, a buyer may be able to make a lower offer and still have it accepted.

Risks and Mitigation Strategies

One of the biggest risks of making a low offer is offending the seller. If your bid is seen as too low, it can come across as disrespectful, potentially souring the negotiations from the start. It’s important to be mindful of how your offer might be perceived and to approach the situation respectfully.

Another risk is losing the property to other buyers. In competitive markets, submitting a low bid can result in someone else swooping in with a stronger offer, leaving you empty-handed.

To mitigate these risks, always have a backup plan. Know the maximum amount you’re willing to pay and be ready to increase your offer if the property is one you’re particularly keen on. Flexibility and preparedness can help ensure you don’t miss out on a home that’s important to you.

Negotiation Strategies for Buyers

When negotiating, it’s crucial to understand what’s driving the seller. Are they looking for a quick sale due to financial reasons, or are they simply testing the market? Knowing their motivations can give you a clearer idea of how much flexibility they may have and help you shape your approach.

Market data is a powerful tool. By using recent sales of similar properties in the area, you can back up your offer with facts, making your bid more persuasive. Sellers are more likely to engage when they see that your offer is grounded in current market conditions rather than just a random low bid.

Always be prepared to negotiate. A low offer is often just the starting point for a back-and-forth. By making a respectful initial offer and staying open to adjustments, you show the seller that you’re serious while also leaving room for compromise.

Incremental negotiation, where you raise your bid gradually rather than jumping straight to your maximum, can help you test the waters and see how flexible the seller is. Additionally, consider adding non-price perks to sweeten the deal. Offering a quicker completion or being flexible with moving dates can sometimes appeal to sellers just as much as a higher price.

Finally, don’t underestimate the power of emotional appeal. Showing genuine interest in the property and explaining why it’s the right home for you can sometimes help sway a seller’s decision.

Seller Preferences on Offers: Factors Influencing Acceptance

Factor Preference (%) Influence on Offer Acceptance
Highest Price 45% Major influence, especially in seller’s market
No Chain 30% Often preferred to avoid delays
Mortgage Pre-Approval 15% Increases confidence of a swift process
Fast Completion Timeline 10% Sellers may prefer buyers who can complete quickly

Expert Tips for Working with Estate Agents

When working with an estate agent, start with a fair offer that reflects both the property’s true value and current market conditions. This shows respect for the seller and signals that you’re a serious buyer, which can help the agent advocate on your behalf.

PhoneNegotiation isn’t only about making offers; it’s also about listening. Paying close attention to the seller’s feedback, both verbal and nonverbal, can give you insights into what they’re really hoping to get from the sale. Estate agents, with their experience and understanding of market trends, can help you interpret these signals and adjust your approach accordingly.

By working closely with your agent and keeping communication respectful, you increase the likelihood of a smoother negotiation and a positive outcome.

The UK Goverment has some research into how offers are accepted thats worth checking out to find out more.

Understanding the Psychology Behind Cheeky Offers

The psychology of cheeky offers plays a big role in how they’re received and how effective they are. For both buyers and sellers, understanding motivations and likely reactions can help you navigate the process with a clear strategy.

Buyer’s Perspective: Why Make a Cheeky Offer?
For buyers, a low offer is often about maximising value within their budget. A cheeky bid can feel like a way to test the waters, especially if they sense the seller may be eager to close the deal quickly. It can also be a way for buyers to feel they’re getting a deal, making the purchase more satisfying.

Seller’s Response: Reacting to Cheeky Offers
From the seller’s side, a low bid can trigger mixed feelings. Some may see it as an insult to their property’s value, especially if they have an emotional attachment to it. However, sellers facing time constraints or financial pressures may be more open to negotiating, particularly if they feel the offer is backed by good reasoning.

By understanding the psychology behind each party’s stance, buyers can make thoughtful offers, and sellers can respond with a level-headed approach, keeping discussions productive rather than confrontational.

Pros and Cons of Cheeky Offers

Making a cheeky offer can have potential benefits, but it’s essential to weigh up the risks carefully. Here’s a quick look at the main pros and cons of making a lower-than-asking-price offer.

Pros

  • Potential for Lower Purchase Price: One of the biggest draws is the chance of securing the property for less than its asking price, which could mean significant savings.
  • Average Savings from Cheeky Offers: Based on market data, cheeky offers in slower markets can sometimes achieve savings of 5% or more off the asking price.
  • Good Strategy for Motivated Sellers: If the seller is eager to sell quickly, they may be more receptive to a lower offer, especially if they face financial challenges or need a quick completion.

Cons

  • Risk of Offending the Seller: A very low offer can offend the seller, potentially leading them to dismiss future negotiations or refuse your offer outright.
  • Losing the Property to Another Buyer: In competitive markets, a cheeky offer may cause you to miss out on the property if other buyers are willing to meet or exceed the asking price.
  • Backup Plan: Always consider having a backup plan in case the cheeky offer isn’t accepted. Knowing your maximum budget and willingness to increase the offer can help if the property is a must-have.

How to Determine a Fair Offer Based on the Asking Price

To make an offer that strikes the right balance, start with thorough research into the current market. Look at recent sale prices of similar properties in the area and check how long the home has been on the market. If it’s been listed for a while, the seller may be more open to negotiation, whereas a newly listed property might require a closer-to-asking bid.

The property’s condition also plays a big role in determining a fair offer. Homes in need of significant repairs or updates might justify a lower bid. Likewise, if the seller is in a hurry to sell due to personal or financial reasons, they may be more receptive to offers below the asking price.

A well-researched offer shows the seller you’ve taken the time to understand the property’s value and are serious about buying. This thoughtful approach can make your bid more appealing, even if it’s not the highest offer on the table.

What to Check Before Making an Offer

Before placing an offer, it’s essential to review your budget and confirm what you can realistically afford. Beyond the purchase price, consider additional costs such as conveyancing fees, stamp duty, and legal expenses. Factoring in these costs upfront gives you a clear picture of your overall financial commitment.

While the asking price is a helpful benchmark, it’s ultimately the seller’s suggested figure—you’re free to offer a lower amount if you believe it’s reasonable. Having a clear sense of your total budget and associated costs helps you confidently navigate the negotiation process without overstretching financially.

Legal Considerations in Making Cheeky Offers

court gavelWhen making a cheeky offer, it’s essential to consider the legal implications. In the UK, estate agents are required by law to present all offers to the seller, regardless of the price. However, sellers are not obligated to accept any offer, and they can reject a cheeky offer if they feel it is too low.

It’s also important to note that making a cheeky offer can be seen as a form of negotiation, and it’s essential to be respectful and professional in your approach. Avoid making lowball offers that are not supported by market data or other evidence, as this can be seen as insulting to the seller.

In addition, it’s crucial to ensure that your offer is not misleading or deceptive. For example, if you make an offer that is contingent on the seller repairing certain defects in the property, you must ensure that you have a clear understanding of the costs involved and that you are not trying to deceive the seller.

Finally, it’s essential to work with a reputable estate agent who can guide you through the process of making a cheeky offer and ensure that you are complying with all relevant laws and regulations.

The Importance of Being Prepared

In most cases, the highest offer stands out to sellers. However, being prepared with more than just a good price can give you an edge. For example, being a “no-chain” buyer (meaning you don’t need to sell another property first), a cash buyer, or having a mortgage in principle can make your offer more appealing by reducing potential delays.

A strong offer, backed by a mortgage in principle, can increase the likelihood of having your offer accepted. Sellers often prioritise a quick and hassle-free transaction, so an offer that poses minimal risk can be very attractive. By showing you’re ready to proceed smoothly, you increase your chances of your offer being accepted—even if it’s not the top bid.

Avoiding Common Mistakes

When making an offer, it’s important to keep emotions in check. Every bid, even a low one, is the start of a negotiation, so staying objective helps keep the process productive. Consider both current market conditions and your own financial limits before deciding on your offer, ensuring it aligns with realistic expectations.

Unrealistic offers, especially if they’re very low without justification, can waste everyone’s time and may harm your relationship with the seller. A thoughtful, well-considered offer shows respect for both parties, creating a stronger foundation for successful negotiations.

Conclusion

Making a lower offer can sometimes help you secure a better deal, but it’s important to remain respectful of the seller’s expectations throughout the process. A fair offer that reflects the property’s true value and current market trends is more likely to be taken seriously and keeps negotiations on the right track.

Successful negotiation is not just about making your case—it’s equally about listening. Paying close attention to the seller’s verbal and nonverbal cues can provide insight into what matters most to them in the sale, helping you tailor your approach effectively. With a balanced, respectful strategy, you stand a better chance of reaching an agreement that satisfies both sides.

Frequently Asked Questions

What is a cheeky offer on a house?

A cheeky offer is a bid that’s noticeably below the asking price, often aiming to get a better deal but without straying so low as to cause offense.

How much lower than the asking price can you offer on a house?

The amount you can offer below the asking price depends on factors like the local market, the property’s condition, and how long it’s been listed. While a 5-10% reduction is common, you may be able to go lower if the seller is particularly motivated.

Is 10% a cheeky offer?

Offering 10% below asking is often considered a low but acceptable bid, especially if there’s room for negotiation or if market conditions are favourable to buyers.

Is it cheeky to offer £20,000 less on a house?

This depends on the property’s price and market conditions. For higher-priced homes, £20,000 less may not be unreasonable. However, on a lower-priced property, it could be viewed as too low.

Is it okay to offer 10% below the asking price?

Offering 10% below asking can be reasonable, especially if there are clear reasons to support the offer, like property condition or market comparisons.

What is a reasonable offer to put in on a house?

A reasonable offer often aligns closely with recent sale prices of similar properties in the area and takes into account the home’s condition and any necessary repairs.

Should you offer the asking price?

In a competitive market or if you’re especially keen on the property, offering the asking price or close to it can make you a stronger contender. In a buyer’s market, however, you may have more flexibility.

Can a home seller reject a full-price offer?

Yes, sellers can reject any offer, even one that matches the asking price. They might hold out for a higher bid, consider other favourable terms, or simply have a change of heart.

Do estate agents give all offers to property owners?

Yes, by law, estate agents are required to present all offers to the seller, regardless of the amount.

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About the author

Starting his career in Estate Agency, Jeff quickly moved up the ranks to manage his own office for Halifax Property Services. Co-founding Speed Property Buyers in 2008, he has applied this knowledge and overseen rapid expansion of the business.