What Is a Cheeky Offer on a House?

What Is a Cheeky Offer on a House?

Buying a home is often a blend of financial calculation and emotional decision making. For many buyers, particularly in competitive markets or during uncertain times, there is the temptation to make what is commonly known as a cheeky offer. This is a term used widely by estate agents and buyers to describe an offer significantly below the asking price. Depending on the context, a cheeky offer might be seen as savvy negotiation or as an insult to the seller.

But what actually qualifies as a cheeky offer? Is it ever a smart move, or is it simply wishful thinking? And how should you approach making such an offer if you believe it has a realistic chance of being accepted? This article explores what a cheeky offer is, when it might work, how it is received and what risks or benefits it carries for both buyers and sellers in the UK property market.

Defining a Cheeky Offer

A cheeky offer is typically one that is considerably lower than the advertised asking price. In practice, this often means putting forward an offer that is ten to twenty percent below the guide price, although the exact percentage will depend on the local market, the condition of the property and the motivations of the seller. It is called cheeky because it pushes the boundaries of negotiation and is usually made with the hope that the seller might be desperate, uninformed or willing to take a quick deal.

Unlike standard offers which are based closely on valuations or recent comparable sales, cheeky offers are often speculative and opportunistic. They aim to test the waters and are sometimes used by investors, cash buyers or those in a strong position to move quickly. While they are not always well received, there are situations in which a low offer can be accepted if it aligns with the seller’s goals or circumstances.

When a Cheeky Offer Might Work

Cheeky offers tend to be more successful in a buyer’s market, where supply outweighs demand and properties are staying on the market for longer. Sellers who are struggling to secure interest may become more open to negotiation, particularly if they are under pressure to move due to financial reasons, a divorce, probate or an onward purchase.

Properties that have been listed for several months without offers, or that require significant renovation, may also be prime candidates for a cheeky bid. In these cases, the asking price may not reflect the true market value or may have been set too high initially. Buyers who can proceed without delay or without needing to sell another property first are more likely to succeed with a lower offer.

However, making a cheeky offer on a newly listed home in a competitive area is unlikely to be accepted and may offend the seller or even damage your chances of future negotiation. Timing and context are key.

How to Approach a Cheeky Offer Professionally

If you decide to make a cheeky offer, it is important to do so in a respectful and informed manner. Backing up your offer with clear reasoning is more likely to lead to a productive discussion. This could include pointing out necessary repairs, recent sales of similar properties at lower prices or explaining that your offer reflects your budget constraints as a first time buyer.

It also helps to highlight any strengths in your position as a buyer. If you are chain free, mortgage approved or able to move quickly, make sure the estate agent and seller are aware. While the offer may be lower than they hoped, the reduced risk or shorter timeline could sway their decision.

It is worth remembering that negotiations are a normal part of the buying process. Many sellers expect offers below asking price and may be prepared to meet halfway. A cheeky offer can sometimes act as a conversation starter, even if it is not accepted outright.

Risks of Going Too Low

While a cheeky offer can sometimes lead to a bargain, it is not without risk. If your offer is seen as too low or unreasonable, it may be rejected out of hand and the seller might refuse to engage with you further. In some cases, the estate agent may advise the seller not to deal with buyers they perceive as unserious.

Going in too low can also backfire in a competitive market. If other buyers are interested and offering closer to the asking price, you may lose out on the property entirely. For this reason, cheeky offers are best used when you have strong evidence to support your position or when the property has been slow to attract interest.

Buyers should also be cautious about the tone of their offer. Being polite and professional in all communications is essential, especially if you want to keep the door open for future negotiation. An abrupt or dismissive attitude can sour relationships and reduce your chances of success.

How Sellers React to Cheeky Offers

Sellers vary widely in how they respond to cheeky offers. Some are offended, others see it as part of the game. Much depends on the seller’s circumstances, motivation and their own expectations about price. A seller who has been advised by their agent that the property is overpriced may be more open to negotiation. In contrast, sellers who have sentimental attachments or believe strongly in the value of their home may be more resistant.

Estate agents play a key role here. Their job is to present all offers to the seller, even low ones, and to provide context for why the offer has been made. In some cases, a cheeky offer can prompt a reality check and lead to a price reduction, especially if no other interest has materialised.

If you receive a firm rejection, it is still possible to revisit your offer later. Circumstances change, and a seller who was unwilling to negotiate a month ago may be more open later if the property remains unsold.

The Role of Valuation and Market Trends

Making a cheeky offer should not be done blindly. A good understanding of the local property market is essential. This includes knowing recent sale prices of similar homes, current demand levels and how long properties are taking to sell. If your offer is informed by solid data, it is more likely to be taken seriously.

Professional valuations, estate agent advice and online property data can all help you judge what the property is worth and whether the asking price is realistic. In many cases, sellers will inflate their asking price slightly to allow room for negotiation, so offering below that figure is entirely reasonable. The key is to be fair and factual, rather than hopeful without evidence.

Final Thoughts

A cheeky offer is not always a bad idea, but it must be handled with care. In the right circumstances, it can lead to a successful purchase and significant savings. In the wrong context, it can alienate the seller and reduce your chances of getting the home you want. Understanding the market, being respectful and clearly communicating your position are all essential if you want to make a cheeky offer that is more than just a shot in the dark.