The art of negotiating: Tips for lowering the price of a house in a market with hagglers

Nobody is proposing that purchasing a house or apartment should feel like buying a rug at a market in Morocco.

Negotiating is typical nowadays in both situations, particularly with the current decline in the real estate market.

According to a recent study conducted by House Buyer Bureau, it has been determined that almost 10% of homeowners who put their houses up for sale tend to lower the initial price within the first month in hopes of increasing the likelihood of acquiring potential buyers.

When it comes to selling a home, the current market is favoring the buyer. In fact, 10% of sellers are choosing to lower their initial asking price within the first month of listing their property in hopes of finding a potential buyer. This is a smart move to increase the likelihood of attracting interested parties and closing the sale.

It's obvious that currently, the situation is perfect for negotiating.

"What's the most effective way to secure your dream home through negotiation?" We've consulted with professionals...

Is it advisable to make an extremely low offer?

Making a decision without a clear motive can cause tension in your relationships. Therefore, it is important to conduct thorough research by examining the condition of the property, the state of the local market, and assessing the potential demand.

According to Simon Bath, from property tech firm iPlace Global, it's crucial for home buyers to identify minor faults as it can provide them with some flexibility during negotiations. This is particularly important for individuals who are in the early stages of the bargaining process.

If you determine that the property is indeed overpriced, don't hesitate to assertively propose a lower offer, advises Jonathan Rolande, a member of The National Association of Property Buyers.

Nevertheless, he suggests avoiding excessive bargaining as it may irritate the vendor and undermine your reliability.

Always keep in mind that the price you provide should not rely on what the other person has requested, but rather on your own estimation of the item's actual worth. It is recommended to offer a price lower than that estimation.

What qualities do I possess that make me a skilled negotiator?

According to Thomas Goodman at MyJobQuote.co.uk, cash is the preferred method of payment. He explains that sellers find cash buyers to be the most secure option since there is no involvement of a chain.

Suppose you are unable to purchase a property outright with cash. In that case, it's best to aim for a situation where you have as much cash available as possible.

If you want to negotiate better when buying a house, it's essential to show that you have already arranged your mortgage. According to John Jones, the director of residential property at Jackson Lees law firm, you should put your finances in order, gather any relevant documents, and be pragmatic about what you can manage realistically.

Is the estate agent trustworthy?

The realtor represents the owner, not you. Their payment is contingent upon the sale of the property.

The more expensive the cost, the greater their charge. While the realtor cannot deceive, they can generate a compelling urge to submit your most substantial and quickest offer as soon as possible.

According to Jason Corbett from Rowallen Buying Agents, you should not rely on them but instead you should depend on yourself.

Jonathan Hopper, the CEO of Garrington Property Finders, advises against bargaining and suggests asking whether any other offers have been made instead.

It's necessary for them to inform you about it, but they may not disclose the actual figure. However, it's advisable to request the specific digits as a precautionary measure.

According to Hopper, it may be beneficial to hire a purchasing representative to handle transactions with a selling agent.

Sometimes, the services they provide can greatly reduce the cost, surpassing their own charges.

Is it possible to negotiate the price of fixtures and fittings?

Installations that are firmly mounted on the wall must be incorporated, while furnishings like chairs and tables are up for discussion.

Corbett suggests using phrases such as "I can offer you this if you add that" to negotiate with the seller. Additionally, it can be beneficial to inquire about the seller's future plans.

If someone is planning to move from a house to a flat or relocate to another country, it's best to inquire if they intend to sell their outdoor furniture and tools. Acquiring new ones can be quite costly.

Is it advisable to disclose my budget?

You should never disclose the highest amount you are prepared to spend to the seller or agent under any circumstances.

Rolande suggests that real estate agents appreciate a potential buyer who states that they are willing to offer £90,000 but could increase their offer up to £100,000 if needed. However, she cautions potential buyers to be cautious about what they disclose to the agents as they are obligated to report any offers to the seller.

Mentioning casually that you are considering another property could expedite the process, as well.