How to haggle your way to a new home

We BRITONS are a reserved bunch. our default position is to keep our heads down and avoid making a fuss. So, when negotiating over the price of a property, haggling can feel a little uncomfortable.

Yet, given the money involved and that our home is likely to be our most valuable asset, we shouldn’t hold back from bargaining our way to the best deal. And it’s all about tactics …

DO YOUR RESEARCH

READ up on similar properties in the area and find out how much they’ve sold for so that you’ve got an accurate comparison and a realistic benchmark figure.

‘Use property websites like Rightmove, as they’re goldmines for understanding how much a property is worth by looking at what’s sold close by. They’ll also tell you how much the seller bought the property for,’ says Jonathan Bone, lead mortgage adviser at online broker better.co.uk.

‘Decide the maximum amount you’re willing to pay for a property and kick off negotiations by proposing a price below your budget. If your offer is turned down, politely point to any issues or repairs the house may need when offering an increased price, to help the seller understand why your first offer was lower.’

If your potential new home needs some repairs or maintenance work, a survey may help you haggle the price down. But be mindful not to go excessively low in your offer as this could put the seller’s nose out of joint and risk your credibility with the estate agent. Instead, rely on research to make your case, adds Cliff Gardiner, head of sales at Berkshire hathaway homeServices London.

‘Ask the estate agent for any comparable sales that they have achieved in the past six months. The market a year ago was different to how it is today. historical sales dating from a year or 18 months ago are largely irrelevant.’

ASK THE RIGHT QUESTIONS

BEFORE you go in for the haggle, write down non-negotiables so you’ve got a clear list of what you won’t budge on and where you’re happy to give a little.

‘If you can give some ground on the less important factors, this should build some goodwill with the seller,’ advises Alex oliver, director of buying agency Prime Purchase.

Targeted questions will also help you plan your negotiating strategy, adds Jerome Lartaud, co-founder and director of property buying agency Domus holmes Property Finder. This might involve asking about the vendor’s reasons for selling, relocation plans and the number of viewings or offers made.

‘Recognising that not all sellers have the same reasons or level of motivation to sell highlights the need for a tailored approach when negotiating. For instance, a family moving to a new area or sellers who haven’t found their next purchase may be open to flexibility on timelines.

‘offering some element of flexibility, such as a delayed completion, can enhance the appeal and thoughtfulness of your offer.’

BE COOL … AND FLEXIBLE

THERE’S often a difference between the value of a property and its sale price. So, don’t reveal your budget as the seller or the agent will always try and push it to the limit. And stay poker-faced — if you’re too obviously keen it will give away that you are willing to pay more.

‘Silence is golden. Remaining silent in the middle of a conversation can be very powerful. Many estate agents are people- pleasers who will often fill uncomfortable silences by over-sharing information or giving ground,’ says edward heaton, founder of heaton & Partners.

‘Casually suggesting you’re looking at other properties in the area might make the vendor more likely to accept your haggled offer for fear of losing the sale,’ adds Terry Fisher of We Buy Any home.

TIMING IS EVERYTHING

FIND out how long the property has been on the market — if it has been quite a while, there’s every chance the vendor will want a quick sale, giving you scope to haggle.

‘Timescale is a big one in the current market where transaction times are already lengthy,’ says Phillip Diggle, area director for estate agency Gascoigne halman. ‘If a property is attracting a lot of attention but you can complete the deal swiftly, set out a proposed timescale in your offer. It may mean you stand out from the competition.’

Typically, the more time a property spends on the market, the more likely a seller will accept lower offers. But this should also make you cautious before rushing in, adds Jonathan Bone.

‘If a property has been available for more than a couple of months there could be a reason.

‘Issues such as a noisy road, poor transport links, or disruptive neighbours might be contributing factors, so it’s important to conduct research to determine whether compromising on a lower- priced property is a worthwhile trade- off considering its potential drawbacks.’

PLAY TO YOUR STRENGTHS

FLAG up what makes you an attractive buyer then use it to your advantage when starting to haggle. ‘You may get away with a cheeky offer if you find a seller who needs to move quickly and you’ve positioned yourself as an attractive buyer, supported by a good solicitor,’ says Jason Corbett of Rowallan Buying Agents.

It might be that you’re chain-free — so you don’t have to wait to sell your property to buy theirs. Cash buyers are also much more attractive than others, as you can move quicker. equally, having a mortgage agreement in principle and deposit will put you in a good light.

And look the part, too. Presenting yourself as a confident, reliable buyer can help you haggle the house price down.

Demonstrating flexibility on moving dates is also worth a lot to a seller, says Jonathan Rolande from the National Association of Property Buyers. As is showing you’re cool and professional.

‘Don’t get caught up on small issues. Many offers fail because buyer and seller can’t agree on a price for carpets and curtains — don’t sweat the small stuff.’