Negotiating directly with sellers - tips required!

mrobbo

My wife and I have found a fantastic house which we wish to bid on. It is on the market at a guide price of 150-160k, and we have just had our second viewing.

The seller (a builder who has done the house up to a brilliant standard) has been quite open with us, and has said he'd rather speak to us directly about 'figures' if we wished to put a bid in (which we do).

Any tips on negotiating with a seller face to face?

Many thanks in advance.

JQ.

Is there an EA involved that he is trying to cut out of the deal and therefore their fee for introducing you?

If that is the case then I'd be more worried about what other shortcut's the builder has made and I certainly wouldn't believe anything they told me.

If that's not the case, then it's no different to negotiating with an EA, although a bit simpler.

Sunnylooloo

I agre with JQ - when an EA is involved it is normal practice to liaise through the agent. If there is an Agent involved and the builder is trying to cut them out - then be very careful as this could cause lots of problems as the agents could go after the builder for their fee.... just make sure you have all the facts.

Good luck - and I hope you get your dream home

googler

My immediate thought is that the developer/builder, if he has any track record, will be better skilled at the negotiation than you will...... unless you have some experience that you haven't mentioned.

jimpix12

In my opinion it's easier to do this than have an EA interfering who is essentially a middleman who fights the corner of the seller, but demands a fee to do so.

All of the builders I have experience with have been to-the-point, they don't mess around with negotiating much, but if the price is reasonable anyway this should not be a deterrent and might even be less stressful in the long run.

G_M

Sunnylooloo wrote: »

I agre with JQ - when an EA is involved it is normal practice to liaise through the agent. If there is an Agent involved and the builder is trying to cut them out - then be very careful as this could cause lots of problems as the agents could go after the builder for their fee.... just make sure you have all the facts.

Good luck - and I hope you get your dream home

So what? Irrelevant. That is a matter between the seller and the agent. Not the OPs concern.

Even if an EA did the initial intro I see nothing wrong with the builder wanting to simplify negotiations by discussing direct.

Just have a very clear idea how much you think the property is worth
a) to you - how much in love are you?
b) on the market - ie compare other local properties.

Set yourself a top limit and never go above it.

Then start low, talk of how much you are having to stretch yourself financially, and allow yourself to be reluctantly increased slowly.

mrobbo

Thanks for the responses all.

I don't think there is any skullduggery going on here. Any price which we agree on will be fed through to the EA - I would never entertain the idea of bypassing the EA.

Although I am a little wary of direct negotiating, I have a figure in mind which we are prepared to exceed. Don't worry, the wife and I won't get carried away

ruggedtoast

At least if you talk to them direct you know what they actually said in response to your offer, not what the EA says they said.

Sunnylooloo

G_M wrote: »

So what? Irrelevant. That is a matter between the seller and the agent. Not the OPs concern.

Even if an EA did the initial intro I see nothing wrong with the builder wanting to simplify negotiations by discussing direct.

.

NOT irrelevant acutally if it messes up this person's sale!

Sunnylooloo

mrobbo wrote: »

Thanks for the responses all.

I don't think there is any skullduggery going on here. Any price which we agree on will be fed through to the EA - I would never entertain the idea of bypassing the EA.

Although I am a little wary of direct negotiating, I have a figure in mind which we are prepared to exceed. Don't worry, the wife and I won't get carried away

you sound like you got your head screwed on and great that you will run pass things by the EA.

Good luck - I hope it all works well and you get your house - fingers crossed!!!!

mrobbo

Thanks Sunnylooloo

The thing is, the house is of an exceptional standard. If we don't go up to asking price (which at this stage, I'm not planning on), he'd have every right to say, "If you don't buy it at asking price, then someone else will", which to be fair, would be true imo. I'll be honest - I'd be gutted to see someone else grab it and for us to lose out.

I suppose it goes back to what G_M said, about asking yourself how much you love the house. But my stubborn streak says, out of principle, not to go to asking price. I want to feel as though we've 'won', if that makes sense.

'Our' house - 150-160k, kitchen extension and side extension (office, downstairs wc with shower cubicle, lots of oak furniture to remain, absolutely nothing to be done to it, no garage but double driveway)
Comparable houses on same road - Two on sale for 135k, no extensions, garage (one with double garage), tired decor, DIY required)

What do you reckon? 145k max? I never thought putting bids in, especially face to face negotiation, would be so fraught! lol