A reasonable offer on a house typically ranges between 5-10% below the asking price, depending on market conditions, property specifics, and seller motivation. Understanding how to formulate an appropriate bid can be the difference between securing your dream home and facing rejection in today’s competitive British property landscape.
Recent market data reveals compelling insights into property offer trends. Buyers are successfully negotiating an average £18,000 reduction off asking prices, representing a substantial 5.5% discount. This figure rises to 6.1% (approximately £25,000) in London and the South East. As of June 2023, the national average saw sellers accepting offers at 3.8% below their asking price, with 42% of property transactions concluding at discounts of 5% or more. Perhaps most remarkably, one in six properties sold at a substantial 10% discount or more, highlighting the significant negotiating power currently held by buyers.
Table of Contents
How to Determine What Constitutes a Fair Offer?
Establishing what makes an offer reasonable requires thorough research and consideration of multiple factors. Begin by investigating recent sale prices of comparable properties in your target location. Property portals can provide valuable insights into local market values, with the average UK property price standing at £264,300 as of April 2024.
The property’s condition significantly influences what constitutes a fair proposal. Homes requiring substantial renovations, structural repairs, or modernisation naturally warrant lower offers to account for the additional investment required post-purchase. Similarly, properties with unique characteristics that might limit their appeal to the broader market-such as agricultural ties or unusual layouts-may reasonably command offers below typical market value.
Time on market serves as another crucial indicator. Properties that have lingered unsold for extended periods often indicate a seller who may be more receptive to below-asking-price offers. Monitoring listing history can reveal whether the property has experienced price reductions already, potentially signaling a motivated vendor open to negotiation.
How to make an offer on a house?
Wondering how to make an offer on a house? Having helped many buyers through this process, I’ve found it’s not as difficult as it seems.
Start by doing your homework on similar properties nearby – this gives you confidence when deciding your offer amount. Most buyers in Britain start around 5-10% below asking price, but this varies with market conditions. Before you make any move, get your mortgage agreement in principle sorted – estate agents take you much more seriously with this in hand.
When you’re ready to make an offer on a house, simply ring the estate agent and tell them your figure. Always follow up in writing via email, mentioning your position (first-time buyer? chain-free?), the exact amount (try £198,750 rather than £200,000 to stand out), and that it’s subject to contract and survey. If they accept, brilliant! Ask them in writing to remove the property from their website and stop viewings.
If they come back with a counter-offer, don’t panic – this is normal. Just know your absolute maximum beforehand and stick to it. Remember, nothing’s legally binding in England and Wales until you exchange contracts, so keep the momentum going to complete the purchase.
Understanding Different Types of Asking Prices
Property advertisements often include specific terminology that provides valuable clues about seller expectations:
“Offers in region of” (OIRO): This phrasing typically indicates the seller anticipates some negotiation and may accept a reasonable offer below the stated price. A bid approximately 5-7% below asking could be appropriate, depending on market conditions.
“Offers in excess of” (OIEO): Here, the seller signals they expect offers above the advertised figure. In this scenario, bidding at or slightly above the stated amount represents a reasonable starting point.
In Scotland, the system differs notably. Properties advertised as “offers over” indicate the seller expects bids exceeding the stated amount, often resulting in competitive offers. Conversely, “fixed price” listings typically mean the seller will accept the first offer meeting the specified amount-though negotiation may still be possible in some circumstances.
Rule of thumb for making an offer on a house: Justifying Your Offer
When it comes to making an offer on a house in the UK, there are several tried-and-tested rules of thumb to guide your approach. The most widely accepted guideline is to offer 5-10% below the asking price as your starting position. This gives you room to negotiate upward if needed while still showing you’re a serious buyer.
However, this percentage can vary based on several factors. If you’re looking at a property that needs work, starting with 1-5% below asking price is often more appropriate. But be careful with offers that dip below 10% of the asking price, as some sellers may feel insulted by what they consider a lowball offer.
Your research should inform your exact approach. Before making any offer, check what similar properties in the area have recently sold for using resources like Land Registry data. The local market conditions matter enormously – in some hot markets, even asking price might not secure you the property, while in slower markets, sellers might accept 5-20% under asking.
The property’s time on market is another crucial factor. If it’s been listed for months, you’re in a stronger position to negotiate a lower offer. Conversely, newly listed properties in desirable areas might warrant offers closer to (or even above) asking price.
When submitting your offer, do so verbally through the estate agent first, followed by written confirmation via email. Make your position clear – highlight advantages like being chain-free or having mortgage approval in place. Always specify that your offer is subject to contract and survey to protect yourself if issues arise later.
Remember to be confident when making your offer, even if it’s below asking price. Use specific figures rather than round numbers (like £198,500 instead of £200,000) to stand out and show you’ve carefully considered your position.
Most importantly, know your absolute maximum budget before entering negotiations. This prevents you from getting caught up in the emotion of bidding and spending more than you can afford.
When Is It Reasonable to Make a Lower Offer?
Several circumstances may justify submitting a bid significantly below asking price:
The seller requires a quick completion (perhaps due to relocation, financial pressure, or another property purchase)
You’re a chain-free buyer, eliminating complications and potential delays
The property has languished on the market for an extended period (typically over 3 months)
Local market conditions favour buyers, with properties generally slow to sell
You’re a cash buyer, offering certainty and speed without mortgage financing contingencies
The property requires substantial renovation or has significant issues identified during viewing
Comparable properties in the area have recently sold for noticeably less
In these scenarios, an offer 10-15% below asking price might be entirely reasonable, provided it’s presented with supporting evidence justifying the reduction.
How Different Discount Percentages Affect Property Prices?
The size of discount that constitutes a reasonable offer varies based on numerous factors, but market data provides helpful guidelines. The table below illustrates how various percentage reductions translate to actual monetary values across different property price points:
| Asking price | Sale price at 3.8% discount (UK average) | Sale price at 5.5% discount (current trend) | Sale price at 10% discount |
|---|---|---|---|
| £250,000 | £240,500 | £236,250 | £225,000 |
| £500,000 | £481,000 | £472,500 | £450,000 |
| £750,000 | £721,500 | £708,750 | £675,000 |
| £1,000,000 | £962,000 | £945,000 | £900,000 |
As this table demonstrates, even small percentage reductions can yield significant monetary savings. The average UK discount of 3.8% translates to a substantial £9,500 reduction on a £250,000 property. Meanwhile, the higher end of reasonable offers-around 10%-could deliver a £25,000 saving on the same property, highlighting why thoughtful negotiation is essential in property transactions.
Can you negotiate house price after an offer is accepted?
Yes, you can negotiate a house price after your offer has been accepted, as the sale is not legally binding until contracts are exchanged. This is quite common in the UK property market, particularly when new information comes to light that might affect the property’s value.
When your offer is accepted, the property becomes “Sold Subject to Contract” (SSTC), meaning the conveyancing process can begin, but either party can still legally walk away or renegotiate terms. This window between offer acceptance and exchange of contracts is specifically when you can still negotiate.
The most common and justified reason for renegotiation is when your property survey reveals issues. If the survey identifies structural problems, damp, or other defects requiring costly repairs, you have solid grounds to request a price reduction. Estate agents deal with this situation regularly and won’t be surprised by such requests.
A 2017 survey by Barclays Mortgages found that 51% of first-time buyers regretted not negotiating on house price before finalising their purchase, showing how normal this practice is.
When renegotiating:
Present evidence from your survey report
Research comparable properties to support your new offer
Be specific about repair costs when requesting reductions
Consider alternatives like asking the seller to fix issues before completion
Maintain professional communication to preserve the relationship
However, be aware that sellers aren’t obligated to accept your renegotiated price. Your success depends on factors like the seller’s motivation, how long the property has been on the market, and current market conditions. Some sellers may reject your request or even put the property back on the market if they feel confident of securing another buyer.
Remember that after contracts are exchanged, renegotiation becomes extremely difficult and unlikely to succeed unless there are exceptional circumstances.
How to Make a Strategic Offer on Your Dream Home?
Approaching the offer process strategically can significantly enhance your chances of success while ensuring you pay a fair price. Follow these steps to craft an effective proposal:
Research thoroughly: Investigate recent sale prices of comparable properties in the specific area, focusing on homes with similar features, condition, and size.
Establish your maximum budget: Determine the absolute ceiling of what you can afford, accounting for mortgage costs, fees, potential renovations, and a financial buffer.
Assess seller motivation: Gather intelligence about the seller’s circumstances-are they in a chain, relocating for work, or under time pressure? This information can inform your offer strategy.
Consider property drawbacks: Document any issues with the property that would require investment to remedy, from dated décor to structural problems.
Formulate your initial offer: Based on your research, begin with a realistic offer that leaves room for negotiation-typically 5-10% below asking price.
Present your position convincingly: Communicate your offer clearly through the estate agent, explaining your reasoning and emphasising your position as a serious, prepared buyer.
Be prepared to negotiate: Expect counteroffers and decide in advance how far you’re willing to increase your bid.
Is Offering the Full Asking Price Ever a Good Strategy?
While negotiation is typically expected in property transactions, offering the full asking price can sometimes represent a shrewd strategy, particularly in competitive market conditions. When multiple buyers are circling an attractively priced property, meeting the asking price immediately can secure the home while others deliberate over negotiation tactics.
Properties priced particularly competitively relative to market value may warrant a full-price offer. Similarly, unique homes in highly desirable locations with limited similar options may justify meeting the seller’s expectations, especially when demand consistently outpaces supply in the area.
For buyers who find themselves emotionally connected to a specific property, the peace of mind that comes from securing their dream home can outweigh the potential savings from protracted negotiations. As one first-time buyer shared: “My anxiety made the negotiation process overwhelming. Sometimes the certainty of securing the right property without the stress of back-and-forth negotiations is worth paying a bit more”.
If offering asking price, consider requesting the property be immediately removed from the market and all scheduled viewings cancelled. This condition provides security against being outbid while solicitors process the transaction.
How Do I Know If the Asking Price Is Fair to Begin With?
Determining whether an asking price reflects fair market value requires diligent research. Examine recent sales of comparable properties in the immediate area, focusing on homes with similar specifications that have sold within the past six months. Online property portals provide historical data, while estate agents can often share insights about local market conditions.
The length of time a property has been listed offers valuable context-homes lingering unsold for extended periods may be overpriced relative to the market. Similarly, properties that have undergone price reductions suggest initial overvaluation. For additional reassurance, consider consulting a RICS surveyor who can provide an independent valuation based on professional assessment.
Should My First Offer Always Be Lower Than What I’m Willing to Pay?
Strategic negotiation typically involves beginning below your maximum figure, creating room for upward movement during negotiations. However, in competitive markets where multiple offers are likely, leading with your strongest proposal may be necessary to secure the property.
When determining your initial offer, consider both market conditions and the specific property circumstances. In slower markets or for homes with limited interest, beginning with an offer 5-10% below asking price allows negotiation flexibility. For highly desirable properties in competitive areas, a stronger initial bid-perhaps 2-3% below asking-may be more appropriate to be taken seriously.
Remember that your position as a buyer also influences appropriate offer levels. Chain-free first-time buyers or cash purchasers can often justify slightly lower offers due to the reduced complexity and risk they present to sellers.
How Does the Current Housing Market Affect Reasonable Offers?
Market conditions significantly influence appropriate offer levels. In a buyer’s market-characterised by abundant supply and limited demand-discounts of 5-10% from asking price are often achievable. Conversely, seller’s markets with limited inventory and high buyer competition may require offers at or above asking price to secure properties.
Recent data shows increasing negotiating power for buyers, with the average discount to asking price reaching a five-year high of 5.5%. This trend reflects growing housing supply, with 34% more homes available compared to previous years and the average estate agency branch now listing over 31 properties.
Interest rates and mortgage availability also impact reasonable offer levels. When mortgage costs increase, buyers’ budgets often contract, potentially justifying lower offers as sellers adjust to market realities.
How Property Saviour Can Help You Negotiate the Best Possible Offer
Securing a favourable purchase price requires strategic negotiation skills that many buyers simply don’t possess. At Property Saviour, we specialise in representing buyers to achieve substantial discounts through professional negotiation tactics and market expertise. Our service removes the emotional burden from what should be a logical financial transaction, allowing you to secure the best possible terms without the stress of direct confrontation.
Our transparent fee structure means you only pay for results-just 25% of any discount we secure below the asking price. This success-based approach ensures our interests are perfectly aligned with yours: the more we save you, the more we earn. For example, if we negotiate a £20,000 reduction on a property, our fee would be £5,000, leaving you with £15,000 in savings plus a successfully secured property.
Why Professional Negotiation Delivers Superior Results?
Many property purchases fail due to emotional decision-making rather than rational financial assessment. As experienced property negotiators, we focus exclusively on purchase price and terms, completely removing the emotional elements that frequently lead to overpayment. Whether it’s anxiety about losing your dream home, nervousness in confrontational situations, or excessive attachment to particular features, these emotional factors can cost you thousands in unnecessary expenditure.
Our professional approach includes:
Comprehensive market analysis to establish genuine property value
Evidence-based negotiation using comparable sales data
Strategic timing of offers to maximise seller receptiveness
Expert management of counter-offers
Professional communication that builds credibility with estate agents
Tactical use of property condition assessments to justify discounts
Building Compelling Cases for Below-Asking-Price Offers
Successfully justifying a lower offer requires more than simply suggesting a reduced figure. Our experts construct comprehensive, evidence-based arguments that make your offer compelling despite being below asking price. We identify specific property issues, market conditions, and comparable sales that support your position, presenting this information professionally to maximise acceptance probability.
For sellers considering multiple offers, we highlight the strength of your position beyond just price-emphasising chain status, mortgage arrangements, and flexible completion timing that may be advantageous to their circumstances. This holistic approach frequently secures acceptances despite not being the highest numerical offer.
Get in touch for a no-obligation chat to discuss how we can help you justify your offer. Our experienced negotiators have saved clients tens of thousands while removing the stress and uncertainty from property purchases. Whether you’re targeting a 5% discount or ambitious double-digit savings, our professional support ensures you approach negotiations from a position of confidence and strength.
Sell with certainty & speed
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
