Buying a property is likely to be the biggest financial commitment you make in your life, so you want to be sure that you’re getting the very best deal that you can.
According to research published in the Telegraph, it’s a good time to purchase, with buyers able to secure an average of 8.6% off the asking price, compared with 5.6% at the end of 2022.
Read on for some tips about how you can haggle down the price, including:
- Being prepared
- Putting yourself in a strong position to buy
- Understanding the seller’s position.
Here are five great tips.
1. Make sure you do your research
Before you head out to look at a property, head online and do some research.
A good place to start is simply to type the address of the property into a search engine, and you’ll see results from sites such as Zoopla and Rightmove that tell you the sale prices of other homes on the street – as well as the sale price history of the house you are considering.
If you can then work out the average price per square foot is of other houses in the street, you can see whether the house you’re looking at is fairly priced.
You could even go one step further and install the “Property Log” Chrome browser extension. This useful app lets you see a list of historic price changes for properties listed on the Rightmove website. As thousands of properties are reduced in price every single day, this historic price change information can show the current state of the housing market in the area you’re looking at. It can really benefit you when putting in an offer.
2. Know your financial position
A vendor is more likely to consider a low offer from you if you are in a strong position to buy. So, before you start looking, speak to a mortgage broker to establish exactly how much you can borrow – and get an agreement in principle.
We can help you to work out your budget and what you can afford, and have your mortgage application ready to go immediately your offer is accepted.
This puts you in a much better position with both the estate agent and the vendor when you make an offer and shows them that you’re serious and can proceed quickly.
Remember not to be bullish about the amount you are prepared to spend. Estate agents often show you houses that are more expensive than your limit, so being coy with your budget can put you in a stronger negotiating position.
3. Underline your strengths
In a tricky market where demand and prices are falling, it can really pay for you to showcase your strengths to the estate agent and the vendor.
Examples include:
- If you’re a first-time buyer and you have a mortgage agreement in principle, this puts you in a good position as there is no chain to hold up the sale.
- If you’re a cash buyer and don’t need a mortgage, you can normally move quickly.
In both these cases, sellers might be much more open to negotiating and accepting a lower offer, especially if they need to sell quickly.
4. Remain calm during viewings
It’s easy to get carried away if you find your dream house during a viewing. However, try and keep your cards close to your chest.
If you are obviously in love with a property, the seller/agent will know that you are willing to pay more for it. So, try and play it cool, and tell the vendor that you’re looking at other properties in the area.
If you’re in a strong position (as you read above) the seller may be keen to do a deal at a lower price.
5. Establish what the seller’s position is
The agent and vendor will want to know what your position is. Are you a first-time buyer? Do you have a house to sell? Are you buying with cash or using a mortgage?
You should also find out what the seller’s position is.
For example, if they are relocating for work, or they have already found another house to buy, you know that they need to sell quickly. Consequently, you may be able to put in a lower offer – especially if the property has been on the market for a while.
If the seller has just put the property on the market, or they are in no hurry, they are more likely to want an offer close to the asking price.
Establishing what the vendor’s position is can help inform the offer you put in.
Get in touch
Agreeing your mortgage in principle and understanding how much you can borrow can put you in a very strong position when negotiating on a house.
So, whether you’re a first-time buyer, moving home, or you’re a buy-to-let landlord looking to get a great deal, talk to us to get your finance in place before you make your offer.
Email [email protected] or call us on +44 (0) 20 3411 0079.
Please note
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
