According to a recent source, 30% of surveyed homeowners stated that they didn’t attempt to negotiate on the price when purchasing a home.
22% of these respondents indicated that this was due to a lack of knowledge, confidence and skills in house price negotiation tactics.
Therefore, it goes without saying that many risk over-paying on their house purchases.
This can be particularly prevalent in certain age groups, such as adults between the age of 25 and 34, who reportedly suffer the most unease when trying to bargain on the price of their home, whereas those aged 65 and over report feeling more familiar with the process.
So, what does it take to get a better deal?
Best tips for negotiating house prices 1) Do your research
Make sure you research house prices in the area you are considering. These will give you a better indication of what you should be paying and what is considered too steep.
Looking at online portals such as Rightmove or Zoopla will provide quick access to an array of properties in your desired area.
If you find that other house prices are lower, there may be room for negotiation, depending on the condition of the property in question.
2) Ask questions
Don’t be afraid to ask your estate agent questions about the property, such as:
- How long has the property been on the market?
- Why is the vendor selling?
- Has the vendor secured their next home?
3) Be sure you can definitely advance with the purchase
Have you got a buyer for your current property and can you afford the mortgage payments on the property you are interested in?
Being in a strong position financially will go a long way to making you a desirable buyer.
4) Determine the maximum price you are prepared to pay
It's a good idea to have a clear idea of your limits, so that you can control the conversation and keep calm when it comes to it.
5) Be realistic
It is possible to offer up to 10% lower than the asking price.
However, be careful not to insult sellers, particularly by pointing out flaws in the house or offering too low, as this could lose you the property if there are other interested parties.
6) Get the estate agent on your side
It is in the estate agent's interest to help their client receive genuine offers, so showing them that you are ready and serious about buying will be fed back to the current homeowner.
The buying and selling process often hinges on a certain level of trust, as both parties seek assurance about the other's commitment and readiness to move forwards.
No one wants to waste time on a sale that could fall through, so whilst it's key to be level headed, don't let that affect your actual interest.
7) Be open to re-negotiating
Although it is better to be sure before making a commitment, you can re-negotiate until the exchange of contracts.
8) Don’t get carried away
The negotiation is not the most crucial part of buying a home.
Most importantly, this is your life and your future home.