A property firm says the magic combination of large numbers of homes for sale plus broadly declining mortgage rates makes this a good time to negotiate a lower purchase price.
Karl McArdle of The Property Finding Company says there are five tups to negotiate a deal.
- Highlight your chain-free position to sellers
Sellers are looking to sell their property as efficiently as possible, and chain-free buyers can reduce delays as they don’t have an existing property to sell. Highlighting this position can help you to stand out as a more reliable purchaser than those who are waiting for their own property to be purchased.
- Stick to your budget
Negotiating on the property price will mean back and forth with the seller, as they put in their counter-offers. To secure a price you are happy and comfortable with, it’s important to set a budget in advance to ensure that you do not go over it in the moment. You need to be willing to walk away from a deal so that you do not overextend yourself or offer too much in a bidding process.
- Tell the seller if you are a cash buyer
Whilst making up only a small fraction of the market, if you are a buyer who is looking to pay in cash, it’s important to make this known to the seller. Proof of funds shows that you are serious about the property purchase.
- Research developments in the area for new builds
New builds can have an extra 20% added onto their value as they have not been lived in before. When this inevitably changes, this can mean resale value reduces, and you may find it difficult to sell without making a loss, particularly if the house was overpriced to start with.
Research the area to see if there are any other new properties under construction, as rival developers will be competing for sales. Developers want a quick sale, so they may be willing to accept a lower offer than the listed asking price. If your offer is turned down, it’s always worth negotiating on things like the cost of fitted appliances.
- Get quotes following a home buyer’s survey
If a home buyer’s survey has flagged any defects in the property, we would recommend requesting quotes from relevant trades professionals. With this knowledge, if you are still interested in proceeding with the purchase, you should use these quotes to negotiate further money off the price of the property.
