Top Tips For Negotiating Your House Price

Buying a home is one of the biggest decisions you’ll make. And it’s likely to cost the most money as well, so negotiating your house price can save you thousands of pounds. Whether you’re a first time buyer or not, mastering the art of negotiation is crucial.

With my first property it was shared ownership so you couldn’t offer less than asking as it was a fixed price. But for our current home we ended up paying £30,000 less than the original advertised price. And that’s a huge sum.

Here are some top tips on negotiating your house price.

Do your research

Before you even start negotiations get as much information about the property and local market. Understanding what the property’s true value is will give you a starting point.

Look at the prices of similar properties sold recently in the area, and review the history of the particular property you’re interested in. Online tools will share how long the property has been on the market and any previous price reductions.

If you’re buying in an area where it’s a buyer’s market (supply exceeds demand) you’re in a strong position to negotiate.

Consider the sellers position when negotiating your house price

Most people selling will be looking to buy a new property of their own, and thus in a chain.

Knowing their situation can help you with negotiations as if they’ve already found a home they want to buy they may be more likely to except an offer so they don’t lose their purchase.

This is what happened to us with our property. The couple selling had found somewhere and wanted to sell quick so lowered the asking price by £25,000. Before any offers we’d already saved. And then we agreed on another £5,000 reduction when we purchased.

Make a list of issues with the property

If there are some larger things that you’d need to fix pretty quickly like a new roof or broken boiler you may be able to negotiate more money off the property.

Even if you don’t save money off the house price you may be able to negotiate improvements as part of the agreement. I’ve heard of scenarios where sellers have actually fixed issues before selling rather than knocking money off.  This can save you money in the long run.

Consider your competition when negotiating your house price

If there’s a lot of competition for the house you may find it harder to negotiate your house price, esp if others are in better positions when offering (no chains etc).

Bare this in mind when putting in an offer. If there’s a lot of competition, you love the house,  you can afford it, and it’s reasonably priced don’t go in too low with your offer as you risk losing out to someone else.

Bit remember ultimately a house is only worth what someone is willing to pay, so don’t overstretch yourself.

Highlight your position as a buyer

Emphasise any factors that make you an attractive choice to sell to. If you’re a first time buyer or have no chain this can mean fewer delays and make you a potentially better candidate. Even though I wasn’t a first time buyer we had no chain when we bought our current home as I’d sold my flat a year before and moved back home a bit.

Highlight any flexibility you have when it comes to accommodating the seller’s prefered timeline for moving.

You may find it useful to have a pre-approved mortgage to show the sell that you’re a serious buyer. This is even more useful if you’re a first time buyer as it strengthens your bargaining position.

Be reasonable when negotiating your house price

It can be tempting to go in really low when you offer, but sometimes this can backfire. Sellers may feel insulted, or not take you seriously as a buyer. And if there is any competition on buyers this could affect your chances.

Be reasonable based on whether the property is competitively priced, the sellers position and any issues with the property and be reasonable.

As our property had already had a price reduction of £25,000 we didn’t want to go in with an offer too low and we took this into consideration. Our original offer was £10,000 less than the new asking and we agreed in the middle with £5,000 off.

When you make your offer to the estate agent they’ll likely be able to give you an indication of whether it’s a reasonable offer. But remember they are working for the seller and ultimately want to get them the most money so they get the highest commission. So don’t feel pressured by what they’re telling you.

Be prepared to compromise and know when to walk away

Negotiating is about finding a middle ground that both you and the seller are happy with. You may not get exactly what you want, but you could still work away saving money.

Prioritise your must-have’s versus nice-to-haves so you know if it’s ultimately the best decision. But remember you can walk away if it’s not right for you. If the seller isn’t willing to negotiate, or the price exceeds your budget it’s okay to move on.

Negotiating your house price can make a huge impact

Negotiations can feel daunting, or even embarrassing, but with thorough research and a calm approach you can secure a deal that works for you both.

Have you ever negotiated the price of a home?