All You Need To Know About A Cheeky Offer On A House
What Is A Cheeky Offer On A House?
When it comes to purchasing a house, everybody yearns for a good deal. Placing a low bid on a property can be tricky since you do not want to rub the vendor up the wrong way. The entire process might leave you pondering, speculating, what is a cheeky offer on a house? Worry no more because we are going to solve the mystery for you.
How Much To Offer below the Asking Price of the House?
Start your talks with an offer that is 10 percent or more beneath the asking price at all times. You do not always know how much the seller is willing to part with the property until you make an offer. Plus, the percentage considered as a cheeky offer on a house is completely subjective. Hence, the reason a cheeky bid is recommended.
An offer of more than 10% below the asking price is considered a cheeky offer. But an offer on a property of 25% below asking price is considered a lowball offer.
Does a Sentimental Acquisition Make A Cheeky Offer Harder?
When purchasing a property and the process gets sentimental, it becomes hard for you to place a cheeky offer on the property. But perhaps the most significant issue influencing talks is the property owner and the realtor working for the property owner.
The realtor is acting on behalf of the property owner. Hence, he or she should never divulge how low the property owner is willing to stoop to get rid of the house. Unfortunately, numerous realtors break this rule.
While it is noted that ten percent is a cheeky offer on a property, nothing is barring you from offering what you think is appropriate. Always know that the asking price of the house is not its actual valuation. The asking price lays the foundation for talks to begin. Always have this etched at the back of your mind when you contemplate what percentage is a cheeky offer on a property.
The offer you place on the table is pegged on how much you value a property. It is also reliant on how much the property owner is willing to take and how hard you are ready to negotiate as a buyer.
An agreement between you and the property seller is dependent on numerous factors. The bus stops with both parties agreeing. In reality, a cheeky deal can be 30% or more. It is reliant on how the seller interprets the deal.
When Is An Offer Disrespectful?
The Oxford Dictionary defines the word cheeky as rude, showing a lack of respect for other people and their feelings. Hence, if you take the definition literally, then you can comprehend why a cheeky offer is considered disrespectful on many occasions. Some sellers can refuse to deal with the person who placed the cheeky deal. Hence, it would help if you exercise caution when placing a cheeky offer.
If the property happens to be your dream house, you should tread carefully to secure purchasing that particular property. Then you should not risk a cheeky deal that is 10% or more since as you could be risking rejection. If you want to be considered a serious contender in the race to acquire the house, then a logical offer is needed.
Is it Disrespectful to Offer on A Property?
Offering less on a property can be deemed offensive by some people. It is down to perception. Some property sellers consider it disrespectful to get low offers on the house, while others expect it. The longer a property is on the market, the less likely a cheeky deal will be noted as disrespectful. Some property purchasers are gladly offering less than the asking price, while others are not.
A property seller can react negatively to a cheeky offer. This could jeopardise your efforts of securing a house since some of the sellers will cease all negotiations and cut all communication. It is all reliant on the property seller.
The Talks of Your Cheeky Deal Lies In the Hands of the Realtor
Despite your fate as a buyer, lying in the realtor’s hands, it is also about how the offer is put forward. If the realtor takes your offer as cheeky, they will not portray it in the best light. But they are required by the law to put all the offers on the table.
The realtor is supposed to manage the talks properly while being sympathetic. It is the realtor’s job to explain offers to the property vendor and instruct them through a lowball offer.
If the house you want to purchase has no sentimental value to you or it is an investment, which does not mean much to you, then you can be as cheeky as you wish.
Cheeky Offers Direct to the Seller
If you talk directly with the property seller, you will lack the essential services of a realtor who serves as a bulwark. Hence, the talks will be hard. People often find it hard to place a cheeky offer when they are in direct contact with the vendor.
Factors Influencing the Percentage Level of a Cheeky Offer on a Property
There are multiple parameters, which influence the percentage level of a cheeky offer on the property, including:
- The house vendor. It is more likely that a realtor will comprehend a cheeky offer. But this does not necessarily mean that they are going to consent to your offer.
- How desperate the seller is for a fast sale. A desperate seller will likely accept a huge discount.
- The state of the property. A property that needs repairs and is in a poor state will probably get a lower cheeky offer.
- The location of the house. If the house is located in a region on demand, it is hard for the seller to accept a cheeky offer.
- Sentimental attachment to the property you wish to own. If you have a sentimental attachment, it will be quite hard for you to place a cheeky deal because you are afraid of alienating the seller.
- Strength emanating from your bargaining position. If you are a cash buyer, you are better placed to put a cheeky offer than a buyer involved in a chain sale. Cash purchasers are more likely to acquire a property through a cheeky offer.
- Your rapport with the seller. A good rapport works best if the talks are conducted directly with the seller. It can also work even if you are negotiating through a realtor because the chances are that you met the property vendor during the property visit.
- Prepare well to face rejection. If you have zero attachment on a property and you are mentally prepared to accept rejection and move on, then you have sufficient room to be cheeky.
How to Make an Offer on a House, Which is Highly-Priced?
When offering on a house, the realtor frequently offers the seller high hopes and sets the asking price annoyingly high. Because the asking price is steep, the seller can have a divergent view of a cheeky offer on the house. Hence, when you want to purchase a house, which is highly-priced, you must get evidence proving that your offer is logical. The house seller might dislike it if you state that the property is highly-priced, yet you have no evidence to back you up.
The most exemplary method of making a cheeky offer on a high-priced house is to conduct a proper investigation. First, the easiest method of knowing if a house is highly priced is to look at the mean days on the market for a house within this area. If the house has been on the market longer than the average number of days, it is most likely highly priced. Hence, the reason the house is getting no buyer. You can utilise this information as evidence when placing a cheeky offer on the house.
Another popular method of gathering evidence is viewing the house keenly and likening it to other properties within the area. If the property is undoubted of low standards, this can be utilised to prove that the property is highly priced, and it will make your cheeky deal look good.
Do Sellers Always Go With The Highest Bid?
Do sellers always take highest offer? The reply to this question is also reliant on the property vendor. Sellers have personal motivation, and some are looking for a fast sale. For example, if a seller gets two offers – one is a cheeky offer that is 10% beneath the asking price but can be completed within three weeks. Then there is an offer: the total asking price, but it involves a long chain. The chances are that the cheeky offer will get selected if the owner is only interested in a quick transaction.
Do Sellers Typically Accept the First Offer?
Sellers accepting the first offer is reliant on the seller and his or her motivation. If they are interested in a fast sale, they are naturally inclined to accept one of the first offers, even if it is a cheeky offer, given that the cheeky offer is not way below their asking price. Nonetheless, if the property vendor is not in a rush to get rid of the property, then he or she may ignore the cheeky offers and wait till he or she gets a quality offer.
Though, it should be noted that the first offers received are usually the great ones. This is attributed to the fact that the property is fresh on the market. Suppose the property owner ignores the first deals that come along, and the property sits on the market for a while. In that case, the agent will most probably ask the property owner to decrease the asking price by about five percent, which is usually in line with the first offer they have gotten.
Can You Offer Fifteen Percent Beneath the Selling Price?
Yes, you can. You can give whatever offer you feel suits the house, but you have to be careful not to give a not too cheeky of an offer since the property owner might consider you disrespectful. Nonetheless, a fifteen percent deal can be noted as a cheeky deal, but it is not that awful that the property owner might think of you as rude.
Realtors are widely known to price a house by up to 15 percent; hence, making an offer of fifteen percent lower, you are close to the property’s actual value. Plus, a property will probably counter with a deal, which demands you increment your offer. Hence, it should be noted that a fifteen percent offer below the asking price is not as cheeky as you can imagine.
Before placing a cheeky offer, which is fifteen percent below the asking price, you should check the number of days the house has been on the market. If the house has been on the market for less than three months, it is noted as fresh on the market, and the property vendor could feel the offer to be disrespectful.
It is also wise to check the sold price of other properties within the residential area . Checking the price of previously sold properties will give you more material that you can use when defending your fifteen percent cheeky deal against the seller.
What Should My Offer Be For A House, Which Has Been On The Market For Half A Year?
If a property has been on the market for more than half a year, then you should offer 15% below the asking price or more. The fact that the property has been on the market for that long is a clear indicator that the property is highly-priced. The vendor’s reaction to the offer is pegged on the person and how motivated they are to get rid of it. For a property, which has been on the market for over half a year, then a low offer is an appropriate starting point. You can always increment your offer with a second bid if you wish to get the property.
What to Do If the Cheeky Offer Is Rejected
How you respond to rejection when the cheeky offer is rejected is entirely dependent on whether or not you have a sentimental attachment to a property or your level of appeal of a property. If you desire to own the house, then it is only logical to make a better offer. You might be required to keep incrementing your offer till a point where you meet the seller’s lowest price.
Nonetheless, if you have no attachment with the house, you can opt not to increment your offer; retain your offer as it is on the table. You might be surprised that you are considered a few weeks or months down the line if the property is not sold.
When to Offer the Asking Price?
There are only two instances when you can be excused to offer the total asking price on a property, including:
- If you are competing with another serious buyer and you desire to own the property. Hence, you can contemplate going to the total asking price instead of presenting a cheeky offer.
- If you have developed a sentimental attachment to the property and you fear losing it.
When to Offer More than the Asking Price?
There are some instances when a house sells more than the asking price. This phenomenon is triggered when the demand is greater than the supply. People purchase a property at a price exceeding the asking price when there is throat-cut competition in acquiring a property. Higher demand than supply is what drives the price of houses up in numerous residential areas. The only time you are excused from purchasing a house at a price, which exceeds the asking price is if it is the property of your dreams and you desire to have it more than anything else.
Conditions Influencing the Level of Cheeky Offer One Makes
If the supply is more than the demand, then you are in a buyer’s market. Within a buyer’s market, you have lots of chances to place cheeky offers on a property. If the house you wish to acquire has been on the market for more than three months, then that indicates several things:
- It shows that the house is highly-priced and ready for a cheeky offer.
- The property vendor is ready and willing to sell, and he or she might be open to a cheeky offer.
In the long run, vendors know that offers will come their way. The worst that can happen is the vendor saying no to your offer. If you wish to own the property so badly, then you go back with a better deal. On the contrary, if you were prepared for rejection and had no sentimental attachment with the house, keep the offer on the table and keep looking for other houses.
What Is Noted As A Lowball Offer?
According to the Oxford Online Dictionary, the term lowball means to deliberately approximate a cost or value of something, which is too low. Lowball offers work best when the purchaser has the upper hand, creating room for negotiation. A lowball negotiation is noted as 25% beneath the asking price. Anything beneath this is noted as disrespectful, making the seller abhor you.
At the end of the day if you like the property and it is at a reasonable price and affordable then you have got nothing to lose putting in a cheeky offer. You can always increase the offer if required.
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