Making a cheeky offer on a house means putting in a bid that’s lower than the asking price, usually by 10–25%.
It’s a common strategy, especially when sellers have priced their property with some wiggle room in mind. But how low is too low? And how do you avoid offending the seller or missing out altogether?
Getting the balance right isn’t easy. That’s where a mortgage broker can be incredibly useful. They’ll help you understand what you can afford, what similar homes are selling for, and whether your offer is realistic, all of which can guide you towards a confident, well-judged first move.
In this guide, we’ll walk you through what makes an offer ‘cheeky’, when it might work, what risks to consider, and how to improve your chances of success.
Why Do Cheeky Offers Work?
Most buyers tend to offer a lower amount than the guide 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. In addition, most sellers want to get a deal done as soon as possible due to how long it takes to sell a house once an offer is accepted.
Bear in mind that if there is a high demand for the property, making a cheeky offer may not be beneficial. Especially if other buyers are willing to go over the full asking price. Accepting an offer on a house for sellers usually will come down to the highest bid.
Are Cheeky Offers Rude or Disrespectful?
Cheeky offers 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, the results of a survey or something spotted when viewing the home could decrease its value. The seller may feel insulted if you offer below 10% of the asking price if there is no concrete reason.
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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. Always remember that it is common for buyers to negotiate their agreed price after the initial offer has been accepted. Most properties are “Sold Subject to Contract”, meaning the property transaction is not legally binding.
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 the house price.
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What is a Lowball Offer?
A lowball offer is defined as an offer made that is around 75% or lower of the asking price. They 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
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 have purchased another property and want to sell their current property as quickly as possible. Another reason could be a housing crash. If this is the case, lowballing may be an acceptable offer.
Read more on How to Sell and Buy a House at the Same Time
Can I Offer 20k Under the Property Value?
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.
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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
Local market research will prepare you for the beginning of the negotiation process as you will be able to determine a suitable offer. A seller’s market means that buyers are inclined to offer more than the seller's asking price due to demand. Similarly, a seller may accept a lower offer in a buyer’s market due to the lack of demand. For example, making a cheeky offer on a house in London would not work as the demand is always high. Solicitors in London also charge a premium for the simple fact that they are based on London.
Recent Sold Price History of Similar and Local Houses
Looking at the sold price history means you can see the recent sale prices in your local 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
If a property has been on the market for over 6 months, it is likely that this is due to a serious issue such as subsidence. It could also be due to the market or the property being overpriced. 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. If there are concerns about the property’s structure, you can hire a surveyor.
Your Personal Interest
You may not feel emotionally attached to the property at the initial stages which means 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.
When Would a Seller 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
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 they are buying the house with cash.
Been on the Market for too Long
There may not be 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 are moving house with a mortgage.
You Give Evidence and Reasons to Back up Your Low Offer
Buyers that receive negative survey results may submit a cheeky offer. 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.
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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, some sellers 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 don’t initially submit your absolute maximum price. This means you will have room to negotiate.
Do Sellers Accept the First Offer?
This is entirely dependent on the seller. 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 a bidding war takes place.
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What to Do if My Low Offer is Turned Down?
If your low offer is turned down and 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. If there is no demand, the seller may contact you and accept your cheeky offer.
How Much Over Asking Price Should I Offer on a Home?
Offering over the asking price is often seen when there is a high level of demand. This means that many potential buyers are 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. A higher offer may result in a larger mortgage. It can also affect the affordability criteria when you receive a new mortgage agreement in principle.
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How Do I Know if My House is Worth the Asking Price?
Many sellers tend to ask for 5-10% above the property’s actual value. This means that you can afford to consider any cheeky offers that come in.
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 sell the property. They may provide an optimistic projection of your property compared to the current market.
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?
High crime rates can negatively affect property value as this comes with higher house insurance rates and safety and burglary concerns. Therefore, you could be justified in giving a lower offer Other examples of decreased value include wind farms, busy roads, and social housing.
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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