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What is a Cheeky Offer on a House?
2021-12-01

  When it comes to buying a house, everyone wants to get a good deal and buy it at a price lower than the asking price. Offering a lower offer can be tricky because you don't want to offend the buyer and shut them out altogether. 

What is a cheeky offer on a house?

  Start your negotiation with an offer that is always 10% or more below the asking price. Before you make an offer, you don't always know how many properties the seller is willing to sell. In addition, the percentage of offers that are considered shameless about the house is completely subjective. Therefore, it is recommended to make a cheeky offer for the reason. Quotes that are more than 10% below the asking price are considered cheeky offer on a house. However, a property offer that is 25% below the asking price is considered a lowball offer. The percentage of cheeky offer on a house reached during negotiations depends on who has the upper hand and whether it is a buyer’s market or a seller’s market.

How much should you bid for a house below the asking price, and when does it cheeky offer?

  Always start negotiations based on 90% or less of the asking price. The percentage of the asking price below the market depends on the quantity you want the property and the quantity the seller wants to sell. Do you need to know the seller’s sales motivation? Before you make an offer, you will not always know how strong their desire to sell or whether their desire to buy is higher than yours. That's why I recommend cheeky offer on a house!

When is a cheeky offer rude or disrespectful?

  According to the Cambridge Dictionary, when you look at the meaning behind the word "cheeky", it means "a little rude or disrespectful". If you take this definition as literal, you can understand why sometimes cheeky offer on a house will meet unsatisfied sellers. It all depends on the explanation. The degree of unpleasantness due to a cheeky offer can extend to sellers even refusing to deal with you after making an offer that they can call disrespectful. This is why I recommend caution on this point. If you have just spent most of the months looking for the perfect new home. If this is your dream home, you need to proceed with caution. Especially if you will be very disappointed if you don't protect the house. Then I suggest that cheeky offers of 10% or more may be rejected. It may even alienate sellers. Sometimes, if you want to be taken seriously, you need a reasonable quotation.

What will affect the percentage level of cheeky offer on a house?

  There are many factors that can affect the percentage level of the cheeky offer on a house. The percentage level of cheeky offer for a house is affected by the following factors:

  1. Who is selling a house: for example, real estate investors are more likely to understand a cheeky offer. But having said that, they will not necessarily accept low-priced offers.

  2. How desperate vendors are for fast sales; are they active sellers? The more desperate or positive they are, the greater the discount they receive.

  3. The repair status of the house: the more repairs needed, the more likely a lower cheeky offer will appear.

  4. The state of the real estate market and the location of the property: the higher the demand in the area, the less likely it is to accept a cheeky offer. Conversely, the lower the demand, the greater the chance of getting a cheeky offer. It is much easier to provide fewer properties in the buyer's market. However, if you find a proactive seller in the seller’s market, you can still offer a low price offer.

  5. Emotional level related to purchase: the higher the emotional level related to purchase, the less likely it is to make a cheeky offer. Compared to non-emotional purchases, this leads to a more cheeky offer.

  6. How prepared you are to exit the transaction: The more prepared you are to exit, the higher the discount may be.

  7. The length of time the property has been on the market: The longer the house has been on the market, the more likely it is to accept a high percentage offer.

  8. The strength of the bargaining position: In other words, are you a cash buyer and can conduct transactions, or do you conduct chain sales. If you are a cash buyer and you are not dependent on sales, this will put you in a better position. Cash buyers are more likely to escape from brazen offers.

  9. How much do the supplier like you or your relationship: This is especially true if you contact the supplier directly. But the same is true through a real estate agent, because you will meet vendors when you look at the house. Whether your offer is accepted can open a coin and how to provide a low price offer.

  10. Early price reduction: this will be displayed on Rightmove, or you can ask the agent.

  11. How prepared you are to accept rejection: if you are willing to accept rejection, then you will be more prepared to become more cheeky.

  12. The current price of the property: if the price of the property is already low, you may not be able to get such a large discount or low price. But it comes down to researching your market first and understanding the bargains when you see it.

  It is important to remember that your first offer is considered a starting point and will help sellers decide if they are willing to negotiate with you. If your first offer is too low, the seller may think you are rude and may refuse to negotiate with you completely. Ask the real estate agent what your buyers expect and whether they are willing to negotiate. Your offer should not be less than 25% of the market value, and you can't even use cheeky offer as an excuse! Sellers tend to accept offers that are 5-10% below the market value, so you can test the water first and provide an offer that is 15% below the market value. This will provide you with space for negotiation and will usually lead you to accept a cheeky offer on a house you want!