Beyond the Asking Price: What you should consider when you make your first offer

The most burning question which passes most First Time Buyers lips is "How much should I Offer below Asking Price?" It's a question that repeats with regular frequency, and its persistence hints at the nuanced nature of property transactions. Exploring the complexities that surround making an offer can provide valuable insights as you embark on your home buying journey and help you understand that the answer is not as simple as a standard amount.

Seller Secrets: The enigma begins with sellers themselves and the motives behind their decision to sell in the first place. Your seller could be harbouring hidden reasons for not accepting your offer, even if you've matched the asking price. Expanding on this, it's essential to recognise the depth of these hidden motives. A seller's financial situation, future plans, or even emotional ties to the property can significantly impact their decision-making process, turning the offer into an inescapable guessing game. You may have enquired and been given one of the reasons for the sale, but it is likely that a multitude of other reasons persist.

As you navigate this intricate landscape, consider the psychology of sellers. Understanding their perspective can transform your approach from mere negotiation to a strategic dance where empathy can be a powerful tool because not all motives will be financially driven, either.

Seller Squeeze: A further dimension to the offer dynamics is Seller Squeeze – a crucial factor often overlooked in the intricacies of property transactions. Sellers, committed to an onward purchase, may find themselves a metaphorical piggy-in-the-middle. If they've got to achieve a set amount to fund their next property, accepting an offer below that threshold could jeopardise their ability to proceed. Recognising the impact of seller expectations adds a layer of empathy to your negotiation strategy, empowering you to choose if you set your offer within the seller's financial comfort zone.

EA Mind Games: Estate agents, can introduce their own layer of complexity through their strategic manoeuvres. The mind games unfold as some estate agents inflate price expectations to allure clients to list with them. However, unless you know which strategies are employed by your local estate agents, you will be left in the dark on how realistically your dream home has been priced. It's crucial to be mindful of these tactics because they not only impact the initial asking price but also set the stage for the negotiation dynamics. And unravelling these ploys can empower you to craft an offer that aligns with the true value of the property.

Bidding Battles: The dramatic crescendo of property transactions often involves Bidding Battles, where estate agents fuel competition to secure higher prices and boost their commissions. To navigate this arena successfully, understanding the nature of bidding wars is essential. Estate agents might counsel sellers to delay accepting offers, even if they meet expectations, in a bid to contrive a bidding war. Understanding the behind-the-scenes moves can be the key to strategically positioning your offer and avoid getting into a bidding frenzy.

Local Factors: Unveiling the secrets of property offers also requires acknowledging the influence of Local Factors. Each locale boasts unique dynamics, shaping the landscape of the housing market. Hotspots magnetise competitive offers, while others languish in a scarcity of demand. Your chosen area's desirability, the supply of properties, and the number of active buyers contribute to the intricate dance of negotiations. Awareness of these local nuances positions you as a strategic player in the offer game.

Is there a standard difference between asking and accepted prices? The resounding answer is no.

Each situation is a bespoke entity, a unique interplay of Seller Secrets, Seller Squeeze, Estate Agent Mind Games, Bidding Battles and Local Factors. These will all influence whether you offer above or below the asking price and also by how much. However you bid, here's a good tip: negotiating up is far easier than negotiating down. So if you would like to enter into negotiations, let this insight be your compass.

In conclusion, every part of the property journey is nuanced. Knowing what layers of complexity may be in play during the offer process, will help you uncover your perfect deal.

Empowering you with knowledge, one strategic move at a time. If you're ready to learn more about buying your first home then sign up for a free workshop on

3 January 2024 between 19:00-20:30