It can be nerve-wracking negotiating over the cost of your dream home.
When you’ve fallen in love with a property, you might be scared of losing it to another buyer. Yet, with nerves of steel, you could potentially save yourself tens of thousands of pounds.
You’ll be negotiating with an estate agent, who is working on behalf of the seller and is likely to be experienced in dealing with such negotiations. However, they’re legally bound to inform the seller about every bid and it’ll be the seller that makes the final decision.
You’ll be far better equipped to negotiate over a property’s selling price if you’re familiar with the situations when a seller is keen to sell quickly. It’ll also be useful to know the best techniques for successful negotiation.
With these tips in hand, you could stand to gain a new property, while saving yourself a huge chunk of money.
You’re in the strongest position to negotiate when there are a few other people competing to buy the house.
Although you may have no way of being sure about this, you can get an idea by checking how long the house has been on the market. If it has been on sale for a few weeks or months, there’s every chance the buyer is impatiently waiting for a bid.
You’ll be able to tell if your local area is experiencing a buyer’s or seller’s market by investigating how many sales have taken place there recently. Try asking the estate agent how many people have viewed the property or whether any bids have been made. Although they may be cagey about answering these sorts of questions, it’s possible to extract vital information from them.
It’s also worth speaking to the seller to find out more about their personal situation. If they’re in a hurry to sell, perhaps because they’re relocating due to a job change, they may be more likely to accept a lower bid.
If the property appears to have attracted a lot of interest, you won’t be in a good position to negotiate, because you’re likely to be outbid by someone else. Even if your bid is accepted, there’s every chance you could be gazumped further down the road.
In these cases, you’ll often have to bid over the asking price in order to secure the property.
You can make an offer to your seller’s estate agent over the phone or in person, but it’s recommended to put it in writing (generally an email) and ask for it to be passed onto the seller. This way your message isn’t lost in translation.
As well as the price you’re willing to pay, include other factors that make you an attractive buyer.
This could include:
It’s worth adding any emotional reasons you may have for moving into the property. After all, many sellers are sentimental about their property and want to sell it to someone who would truly appreciate it.
If it’s possible, develop a communicative relationship with the seller, so they can see you’re a reliable, trustworthy buyer. This will aid you in any negotiations you engage in.
| Response | |
|---|---|
| Yes | 51.94% |
| No | 48.06% |
If you’re wondering whether to use a mortgage broker or go directly to a bank, we explore the benefits of a broker.
Learn more about Simply Adverse, a mortgage broker, which specialises in finding the best available deal for those with a bad credit score.
Here’s everything you need to know about fees when exiting a mortgage.
Everything you need to know about joint mortgages and buying a property with your parents.
You should be aware of how being a guarantor could influence your ability to qualify for a mortgage.
Learn how a personal loan could affect your eligibility for a mortgage.
Find out if financing a car affects your mortgage application.
They have been popular in other countries for some time, and now 15 year fixed rate mortgages are available in the UK.
Plenty of lenders will let you borrow 95% of a property’s value.
Looking for a mortgage with TSB? Compare different rates and mortgage types, and find out how to get the right home loan for you.