What Is A Cheeky Offer On A House 2023?
In today’s property market, buyers are constantly seeking advantages and bargaining power. One tactic commonly employed is making deliberately low offers below the asking price, hoping to start negotiations and secure a discount. But at what point does an offer become cheekily unrealistic rather than just opportunistic? Let’s examine what defines a cheeky offer in 2023, from the seller’s perspective.
Defining a Cheeky Offer
A cheeky offer is best defined as one that both the buyer and seller know is unreasonably undervalued given the property circumstances and market factors. It aims to boldly capitalise on a seller’s urgency or naivety rather than representing a sincere starting point for negotiation.
Cheeky offers are usually significantly below the asking price without justification and made with hope rather than expectation. They can leave sellers feeling insulted and exploited. Tactful bargaining is understandable – cheekiness less so.
When An Offer Crosses the Line
It’s subjective where hard bargaining becomes downright cheekiness. But some signals an offer has crossed that line include:
- Making an offer solely because a property has been listed for a while, without other evidence it’s overpriced.
- citing minor cosmetic faults as justification for large discounts of 10% or more.
- Making substantially low offers on multiple properties in an area, hoping someone will eventually accept.
- Pretending lower comparables are directly equivalent despite glaring differences.
- Implying dire urgency for a quick sale that doesn’t exist, to pressure sellers.
- Going silent when sellers challenge the basis of the low offer, showing they cannot justify it genuinely.
Aim for respectful back and forth. If an offer seems more about opportunism than value, it enters cheeky territory.
Responding Politely But Firmly
When faced with a cheeky offer, first try to discern if the buyer is simply misinformed or deliberately being provocative. Politely outline your reasoning for why the offer does not fairly align with the property’s true position. Provide evidence like comparables to demonstrate its value.
Acknowledge the buyer’s interest but restate your expectation to receive realistic offers in good faith. Do this without emotion or accusations. If it was an honest mistake, the buyer will likely adjust their position. Those just chancing their luck may withdraw interest. Either outcome saves you wasted time and energy.
The Risks of Accepting Cheeky Offers
Sometimes the frustration over cheeky offers leads sellers to unexpectedly accept, just to move things along. But before doing so, consider the risks:
- It anchors pricing and expectations undesirably low.
- The buyer may push for further discounts like fixtures if you concede early.
- It signals desperation which buyers can exploit through renegotiation.
- You may resent the buyer and dealings could become fraught.
- It undervalues your home, essentially giving it away.
Unless you genuinely have flexibility on price, stand your ground on overly opportunistic offers. Wait for buyers who will appreciate your property’s true worth.
Context Where Cheeky Offers May Be Justified
While usually frustrating, cheeky offers can occasionally be warranted by the circumstances:
- If you must sell urgently like a repossession scenario.
- If the property has severe structural or local issues it is undesirable.
- If you have no other offers after extensive time on the market.
- If recent sales show declining values in the area.
- If you have already dropped the asking price considerably.
- If you need a quick, guaranteed sale for personal reasons over the maximum price.
In these cases, buyers may rightly see an opportunity to bargain. You can still negotiate firmly, but offers once deemed cheeky may merit consideration.
Things That Can Attract Cheeky Offers
Certain factors can inadvertently signal buyers that cheeky offers may succeed:
- Setting an unrealistic asking price far above market value.
- Making embellished claims about the property’s attributes or valuation.
- Listing the property for sale by owner without agent representation.
- Replying instantly to any lowball offers, signalling desperation.
- Minimising the home’s obvious flaws rather than addressing them upfront.
While undesirable, these behaviours incentivise buyers to test the waters with implausible offers. Avoiding them makes cheekiness less likely.
Managing Emotions Around Offers
Receiving an insultingly low offer naturally stings, especially if you have invested time and effort. But maintain composure and professionalism. Snide or angry responses only diminish your leverage.
Vent privately, but always engage openly. Keep in perspective that offers are just part of negotiations, and you hold the power until signing a contract. If needed, have your agent handle discussions to keep things pragmatic not personal.
Should I Make Cheeky Offers as a Buyer?
Buyers should avoid deliberately making unrealistic offers that waste all parties’ time and sour relationships. Instead, be upfront about your pricing position but flexible to fair counter-offers and evidence. Pursuing negotiations positively will serve you better than being stubbornly cheeky.
Aim to establish rapport with sellers and understand their motivations before making bold offers. If testing with a low offer, be ready to justify it and compromise if required. With transparency and empathy, you can still negotiate successfully.
Considering Tax Implications
One final tip when receiving unexpected offers – consider capital gains tax and other implications if you do eventually compromise at under-market value. Receiving an amount significantly below expectations could result in lower tax bills. So keep this silver lining in mind when weighing up cheeky offers.
Receiving cheeky offers can be frustrating. But take time to assess if they have any validity before dismissing them outright. Respond firmly but calmly with evidence as to why the offer is unrealistic. If completely implausible, stand by your value expectations confidently. With patience and resilience, you will still attract buyers who appreciate your home’s true worth. In the context of selling your house in 2023, it’s essential to be aware of market trends and potential negotiating tactics. You might wonder, “What Is A Cheeky Offer On A House 2023?” Understanding the current market dynamics can empower you to navigate through offers more effectively and make informed decisions during the selling process in 2023.