Firstly tell the estate agent that it is on sale cheaper else where, mostly they will immediately drop the price. If not tell them your going around to the other estate agent and doing a deal with the other estate agent - It your money and you can go where you like. Both estate agents will want you to buy through them and as they are after the commission which will probably be around £1,500 from the Seller to them.
if the house is maketed at £130k or £132 I would seriously go in with an offer of £120,000 and just tell them that you think it has been overvalued and there is still work to be done on it (probably needs something doing anyway). They wont initially accept but second offer should be £122,000 and then tell them your FINAL OFFER will be £125,000 - you wont pay a penny more. If you cant do it and sound serious then get your partner to do it for you - it happens all the time and you will get one of your offers accepted. In case you dont and you desperately want the house then you have to pay the full asking price but the market the way it is all estate agents are telling the sellers to drop the price.
We recently got £20,000 knocked off the price of house that needed work and £10,000 of a new built house which needs no work. Its simply a case of if you dont ask you dont get and everyone wants to sell at the moment. All its going to cost you is a few telephone calls at the end of the day.