What is classed as a cheeky offer?

A "cheeky" offer in property negotiation is a low-ball bid, typically 10% to 20% below the asking price, designed to test a seller's flexibility and urgency. It is a strategic, often opportunistic, offer used in buyer's markets or when a property has been listed for a long time.

Is 20% off a lowball offer?

A true lowball offer is considered to be 20% off the listing price. For example, if your home is on the market for $850,000 and you receive an offer for $680,000, you've received a low ball offer.

How much is a cheeky offer on a house?

Definition and Context. A cheeky offer typically falls between 10 and 20 per cent below the asking price, although this can vary depending on the local market and the seller's level of motivation.

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

Start low: When you are making an offer on a house, a good rule of thumb is to offer 5% to 10% lower than the asking price. Sellers often take this into account and market their property for more than they would accept.

What are the red flags for buying a house?

What Are Red Flags When Buying a House? Red flags are warning signs that suggest a property may have underlying problems. These can range from visible defects, such as cracks and damp, to less obvious issues like unusual seller behaviour or legal complications with land ownership.

How UK Property Investors Use Cheeky Offers and Credibility to Secure Below Market Deals

What are red flags on a house survey?

Red flags on a house survey signal serious, costly issues like structural problems (subsidence, large cracks, uneven floors) and major water damage/damp/mould, indicating potential foundation or roof issues. Other key warnings include outdated electrics/plumbing, hazardous materials like asbestos, pest infestations, invasive plants (Japanese knotweed), and potential boundary/legal disputes or unapproved extensions, all requiring expert assessment before purchase.

What is the 70/30 rule in negotiation?

The 70/30 rule in negotiation is a guideline to listen 70% of the time and talk only 30%, focusing on understanding the other party's needs, motivations, and priorities through active listening and open-ended questions, which builds trust, reduces misunderstandings, and fosters collaborative solutions, making the other person feel heard and valued. This approach shifts the focus from simply stating your position to uncovering insights that lead to mutually beneficial agreements. 

What is a silly offer on a house?

A cheeky offer is typically between 10% and 25% under the asking price of the property. An example is that a seller has listed their property on the market for £250,000, but you've only offered £200,000. This is a 20% decrease between your offer and the asking price.

Can I offer less if it says offers in excess of?

Can You Offer Less Than an OIEO Price? Yes, if a property is priced OIEO you can offer less than that price if you want. However, you should bear in mind that your offer may be rejected out of hand. It is important to be aware that the OIEO price may well be less than the market value of the property.

How low is too low an offer?

A lowball offer is typically one that comes in significantly below the asking price—often by 20% to 25% or more. While there's no strict definition, it's the kind of offer that risks offending the seller if not handled carefully. That said, not all low offers are deal breakers.

What is considered a good discount?

For a $2,000 item, $500 off seems larger than 25%, which makes people more likely to purchase when they see the absolute dollar discount. The Rule of 100 says that under 100 percentage discounts seem larger than absolute ones. But over 100, things reverse. Over 100, absolute discounts seem larger than percentage ones.

Does Offer Over put people off?

Does OIEO put buyers off? While offers in excess of pricing can be great for sellers, it can also have the undesired effect of putting off potential buyers. Firstly, it can suggest there isn't room for negotiation, which may deter buyers from making an offer.

What is the 28/36 rule in the UK?

The 28/36 rule in the UK is a guideline for mortgage affordability, suggesting your monthly housing costs (mortgage, insurance, council tax) shouldn't exceed 28% of your gross (pre-tax) income, and your total monthly debt (including housing, credit cards, loans) should be under 36% of your gross income, helping you budget and showing lenders your financial capacity. 

What is a realistic offer on a house?

Offer what you think it's worth. It's asking price doesn't matter. There is no 5/10% lower, each area is different, each property is different. There are no bargains when it comes to housing. Some houses will go for above their asking price.

How quickly should you get viewings on your house?

You'll see the majority of viewings in the first week your property is on the market as eager buyers flock to see a new property. A good estate agent will often have a list of buyers lined up to view your property before it's widely advertised.

Can a seller just not respond to an offer?

Does the seller have to respond to your offer? No, there is no legal obligation for a home seller to respond to an offer to buy a home. Generally, sellers will respond when they get an offer if they are interested in negotiating with you or may simply reach out to let you know your offer wasn't the winner.

What are some red flags when selling?

Disorganized or Incomplete Financials

These signal a lack of sophistication and create uncertainty, which buyers translate into either a discounted purchase price or a hard pass. Solution: Engage a qualified CPA to clean up your financials and prepare quality of earnings materials, even informally.

Why would a house not sell for 6 months?

However, there are a lot of factors at play that determine how soon your house will sell. For some, it takes quite some time. It could be because of a lack of buyer interest, high interest rates putting people off buying, an estate agent not doing enough, and even the state of the property market conditions.