What Is A Cheeky Offer On A House?

Written by Nicola Ryan

9th Jan 2023 (Last updated on 12th Jan 2023) 13 minute read

What is Considered a Cheeky Offer on a House?

A cheeky offer is referred to offers made that exceed 10% under the initial asking price. Specifically, cheeky offers are between 10-25% of the asking price. Putting in an offer that is 25% lower than the full asking price is known as a lowball offer.

There is no fixed percentage when it comes to cheeky offers. This is because there are many factors that can affect how much you should offer on a property and whether sellers will accept.

What is a Reasonable House Offer?

Most buyers tend to offer a lower amount than the asking price. Sellers expect this and overprice their property to reduce the chances of making a loss on the property. Therefore, making an offer is not as disrespectful as it may seem. This is because offers between 10-25% of the full sale price will likely be closer to the market value of the property.

Bear in mind that if there is a high demand for the property, making a cheeky offer may not be beneficial. Especially if there are other buyers who are willing to go over the full asking price.

Read our guide on Making an Offer on a House in 2023

Are Cheeky Offers Rude or Disrespectful?

The nature of cheeky offers is that they are not supposed to be rude or disrespectful. However, if you want to offer below 10% of the asking price, it’s best to have justifications as to why you are doing so. For example, if you have had poor survey results or the property has been on the market for a long time, you can back up your low offer.

The seller may feel insulted if you offer below 10% of the asking price if there is no concrete reason. For example, if the property has not been on the market for long or the survey results are positive. You can offer however much you want, but offering well below the asking price without justification can cause the seller to disregard you.

Making an Offer on Properties that have Been on the Market for a Long Time

There are various reasons why properties can remain on the market for a long time. The most common reason is due to overpricing. This means that after six months, the seller may feel inclined to accept a cheeky offer.

The seller may have overpriced their property during a time when there is not as much demand. The more evidence you have to back up your offer, the more likely they are to accept your offer.

Can I Offer 15% Below Asking Price?

You can offer any percentage below the asking price. However, you want to make sure that you don’t offend the seller as this can cause them to disregard you from submitting another offer.

15% below the asking price is regarded as a cheeky offer rather than disrespectful. This means that it is unlikely that you will be disregarded.

Sellers tend to overprice their property, overvaluing by 5-10%. This means that putting in a cheeky offer that is 15% below the asking price is actually closer to the property’s value.

When you put in an offer on a house, the seller may provide a counteroffer, meaning that you will be in a position to negotiate.

What is a Lowball Offer?

A lowball offer is defined as an offer made that is around 75% of the asking price. This means that you are offering below 25% of the full asking price. Lowball offers are rarely accepted and may be perceived as disrespectful by the seller. However, there are instances when buyers may have the upper hand and can put in a lowball offer.

Here are some examples:

Long time on the market

The first thing to consider is how long the property has been on the market. If a property has been on the market for over six months, it’s probably worth diving into why this is. It could be due to structural issues such as subsidence, or the asking price is well above the average for the area.

Seller’s circumstances

Some sellers may be in a position where they need to quickly sell their property. They may have purchased another property and want to sell their current property as quickly as possible. If this is the case, lowballing may be an acceptable offer.

Can I Offer 20k Under the Property Value?

You can offer as much as you want on a property. When it comes to deciding how much to offer, most people tend to work out a percentage rather than a set amount. This is because a set amount represents a different percentage depending on the asking price.

For example, if you find a property for £150,000 and want to offer £20,000 less, this would be a 13% reduction from the asking price.

On the other hand, if you find a property for £500,000 and want to offer £20,000 less, this would be a 4% reduction from the asking price.

As you can see, £20,000 accounts for a lot more on a cheaper property because it represents a higher percentage. House prices can vary greatly so it’s best to think about the local area and weigh up why you want to offer below the asking price.

How to Work Out How Much to Offer on a House

The most important part of cheeky offers is knowing how much you should offer on a house. Here are the steps you need to take before putting in your offer:

Market Research

The first thing you need to do is extensive market research. This will ensure that you are as prepared as possible when entering negotiations. Market research means observing what condition the housing market is currently in. There are times when there is more demand, which can cause buyers to offer more than the asking price. On the other hand, there are times when there is little demand, meaning that buyers can offer less because the market is less competitive.

Sold Price History of Similar and Local Houses

As part of your research, you should look into the sold price history of similar and local houses. This means that you can see how much properties have actually sold for in the area. Knowing the selling history for the area and similar properties are the best way to gauge how much you can offer. This is because sellers tend to increase their asking price over the market value.

How Long the House Has Been on the Market

You should look into how long the house has been on the market. If a property has been on the market for over six months, it is likely that this is due to a serious issue as mentioned above. Issues such as subsidence can negatively affect a property’s value. This means that if you are interested in a property that has been on the market for a long time, you will have a higher chance of your offer being accepted.

Once you’ve considered all of the above, you’ll be in a better position to make a cheeky offer and have a stronger starting point for negotiations.

Your Personal Interest

Another important factor is how much you are personally invested in the property. You may not feel emotionally attached to the property at the initial stages. This may mean that you can take rejection better if your offer is turned down. Also, consider your personal relationship with the seller or vendor. If you know the seller directly, you may feel less inclined to put in a cheeky offer.

Your Position

Your position is especially crucial when it comes to your offer. Your financial situation will determine how much you can negotiate. Equally, if you are a cash buyer, you’ll be in an even better position to negotiate as there are fewer obstacles.

When Would a Seller Accept a Cheeky Offer?

There are several scenarios where a seller would accept a cheeky offer. While it is not guaranteed, you may be able to purchase a house quickly with an acceptable offer that is below the asking price. Here are some instances where a seller would accept a cheeky offer:

Need a Quick Sale

Firstly, sellers that need a quick sale are more likely to respond positively to a cheeky offer. The seller may have already purchased a new property and needs to sell their current property quickly. If the seller wants their property sold as soon as possible, they may be more responsive to lower offers, especially a cash buyer.

Been on the Market for too Long

If the property has been on the market for a long time, the seller may accept a cheeky offer. This could be because there isn’t a demand for the asking price. Therefore, the seller may decide to take a loss and accept a lower offer. This may be the case if they have purchased a new property and need to take out a new mortgage.

Read more about Moving House With a Mortgage

You Give Evidence and Reasons to Back up Your Low Offer

Lastly, you may have evidence from viewing the house or negative survey results that push you to make a cheeky offer. If the reparation costs are high, the seller will have to consider this. They can either pay the reparation costs and keep the full asking price as is, or they may accept the cheeky offer and leave repairs to the buyer.

Do Sellers Always Take the Highest Offer?

When there is high demand for a property, it may feel tempting to submit a higher offer to boost your chances of having your offer accepted. Some sellers who want to sell their house quickly may accept the highest offer they receive. However, there are some sellers who may accept a lower offer in certain circumstances such as cash buyers. This is because there are fewer obstacles and less paperwork with cash buyers.

Make sure that you are always remaining within your budget when making an offer, leaving room for negotiation.

Do Sellers Accept the First Offer?

This is entirely dependent on the seller. Again, some sellers may want to sell their property quickly and are happy to take the first offer that comes in. However, others may want to see how the demand plays out on the market and see if any other offers come in. If you do make an offer and it is rejected, make sure that you are keeping in touch with the seller’s estate agent to let them know if the offer is still on the table or not.

Can Emotion Make Buying a House More Difficult?

Emotion can make buying a house more difficult, especially in instances when there is a lot of demand and competition. This can make the idea of putting in a cheeky offer difficult, even if the cheeky offer is justified.

You may be able to find out from the estate agent how low the seller is willing to go. If this is the case, it puts you in an advantageous position. You can make a cheeky offer that doesn’t offend the seller or compromise your chances of successfully purchasing the property.

If you make a cheeky offer that is declined, take some time to evaluate your emotions before making another offer. The seller may come back with a counteroffer, or you may have to increase your offer. Either way, make sure that you keep the communication open between you and the seller.

What to do if my Low Offer is Turned Down?

If your low offer is turned down, there are several options that you can choose from. The option you should take is dependent on your circumstances and how passionate and emotional you feel regarding the sale.

If you are determined to purchase the property, you may want to consider putting in a higher offer. However, make sure that the higher offer is affordable and within your own budget.

Sometimes sellers reject offers early on because they anticipate a lot of demand. However, if there is no demand, the seller may contact you and accept your cheeky offer. Make sure that you keep in touch with the seller’s agent or vendor in regard to your offer.

How Much Over Asking Price Should I Offer on a Home?

While it may seem like a ridiculous idea, there are instances when making an offer over the asking price on a property is the right thing to do. Offering over the asking price is often seen when there is a high level of demand. This means that there are many potential buyers trying to outbid one another. In many cases, this can cause the offer to go well above the asking price.

Bear in mind that if you are planning to offer over the asking price, you need to make sure that this is within your budget. This is because a higher offer may mean that you have a larger mortgage and affect the affordability criteria when you receive a new mortgage in principle.

How Do I Know if my House is Worth the Asking Price?

If you are selling your property, you want to make sure that your asking price is appropriate. On average, sellers tend to ask for 5-10% above the property value. This means that you can afford to consider any cheeky offers that come in.

However, as with buyers, sellers should also take note of the housing market and research properties in your area. This will give you a good indication of what price you should consider.

If you hire multiple estate agents to market your house, they will be competing with one another to market the property. There is a possibility that the estate agents will provide an optimistic projection of your property compared to the market. Therefore, it’s best to consider all options before making your final decision.

You should also request a Valuation Report as this will ensure that your house is as close to an accurate asking price as possible.

What Decreases Property Value?

Property value can be decreased by various factors such as crime rates in the area. This is because areas with high crime rates come with higher house insurance rates. Therefore, you could be justified in giving a lower offer.

Also, properties that have structural issues such as subsidence that need to be repaired will be costly. You can submit a lower offer to account for these expenses if the seller does not plan to pay for the repairs themselves.

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