When house hunting, you may come across a property you love but think the price is a bit too high. This is when you might consider making what’s known as a “cheeky offer.”
But what exactly does that mean, and is it a good idea? At JG Mortgage Services, we’re here to guide you through this strategy and help you make informed decisions.
What is a Cheeky Offer?
A cheeky offer is essentially a low offer – often around 10% – 25% lower than the asking price. It’s typically made when a buyer thinks the property may not be worth the listed price or when they want to see how much room for negotiation there is.
This type of offer can sometimes be a gamble, but when done correctly, it can lead to a great deal.
Do Cheeky Offers Work?
Cheeky offers can work, but your success depends on different factors, such as:
- Current market conditions
- The seller’s motivation
- The property’s listing price.
In a buyer’s market, where there are more houses than buyers, sellers might be more open to negotiation. However, in a seller’s market, where demand is high, you may risk offending the seller or losing the property altogether if your offer is too low.
Could This Be Seen as Disrespectful?
There’s always a fine line between a cheeky offer and a lowball offer, and yes, it can sometimes be seen as disrespectful. Sellers may feel insulted by an offer they consider too low, especially if they believe their property is fairly priced.
However, if you make your offer in good faith, with solid reasoning and market research to back it up, you’re less likely to offend.
Some Tips for Cheeky Offers
If you’re a first-time buyer and are considering making a cheeky offer, here are a few tips to increase your chances of success:
Look for Properties That Have Been on the Market for Some Time
Sellers with homes that have been on the market for a while may be more willing to entertain lower offers. This could be due to a lack of interest in the property, changes in their circumstances, or frustration from not selling. These properties present a good opportunity for a cheeky offer.
Consider Seller’s Circumstances
Understanding the seller’s situation can give you an edge. Are they looking for a quick sale due to financial strain or relocation? If they’re eager to sell, they may be more willing to negotiate on price.
Sellers in such circumstances might appreciate the certainty of a lower offer if it means a quicker and more straightforward transaction.
Give Evidence and Reasons For Your Low Offer
A cheeky offer should always be backed up by evidence. Point out any issues with the property that may require repairs or highlight local market trends that suggest the asking price is too high.
When your offer is reasonable and based on facts, sellers are more likely to consider it seriously.
How Much Lower Should I Offer?
There’s no one-size-fits-all rule for how low your offer should be. As a general guideline, cheeky offers tend to be around 10-20% below the asking price.
This range gives you room to negotiate without being seen as unrealistic. However, each property and situation is unique, so it’s important to assess the specifics before making a move.
How is a Lowball Offer Different?
A lowball offer is typically seen as one that is too far below the asking price and can be viewed as offensive by sellers. A lowball offer is typically around 75% lower than the asking price.
While a cheeky offer is still on the edge of negotiation and could open a conversation, a lowball offer risks shutting down the possibility of any further dialogue.
The key difference is that a cheeky offer still feels like it could be reasonable based on circumstances, while a lowball offer feels extreme.
How to Work Out How Much I Should Offer?
To determine the right amount for a cheeky offer, you’ll need to do your homework. Alternatively, our team of mortgage brokers can help you consider the following factors:
Research the Market
The property market fluctuates, so it’s essential to understand the current conditions. Are prices rising, or has there been a recent dip? In a competitive market, sellers may be less likely to accept a lower offer, but if the market is slowing down, they may be more open to negotiation.
Sale History in the Area
Look at recent sales in the neighbourhood. What have similar properties sold for? If the asking price is higher than comparable properties in the area, it gives you leverage to make a lower offer. At JG Mortgage Services, we always recommend looking at recent data to give you a clearer sense of what’s reasonable.
How Long Has It Been on the Market?
The longer a property has been on the market, the more likely the seller is to accept a cheeky offer. Homes that have lingered without interest for around 6 months often mean that the price may be too high, or that there are other factors deterring buyers. This can allow you to come in with a lower offer and still be taken seriously.
Key Takeaways
- A cheeky offer is an offer on a house that is deliberately slightly lower than the asking price given by the seller.
- Cheeky offers can be an effective way to get a cheaper house than expected, so long as the offer is not too low.
- Our top tips for cheeky offers are: Look for properties that have been on the market for some time, think about the seller’s circumstances and have evidence of your finances at the ready.
- Offering around 75% of the total asking price is usually a safe offer.
- The JG Mortgage Services team is available to answer any questions you may have
Joshua Griffith is the founder of JG Mortgage Services Ltd, established in 2021. With over a decade of experience in UK banking, he brings a client-focused approach to mortgages. Passionate about helping families achieve homeownership, Joshua combines industry expertise with personalised support.
