Negotiating a House Price (Looking for Tips/Experiences)

Amoux

I'm a FtB so probably not the most experienced. But I learnt a few things when going through the negotiation process.

I think it's important that when you view these houses that you don't reveal too much, particularly over your financial position. This was my mistake.

Every agent I spoke to asked questions about my budget and how much I could feasibly go up. Reveal too much on this and they can and will use this against you in the negotiation. I'm really happy with the price I offered, but the agents did flush out my best offer and they knew it was my best offer as I perhaps revealed too much at the viewings.

Secondly how much you decide to offer is really dependant on how much you value it. Look at the property market, and how other comparables sold for. Also look at how long the house has been on the market for and what the sellers situation is. My house was barely on the market for a week so the sellers were (understandably) more reluctant to sell much lower. They sat on my lower offer for a bit as they wanted to see what else might come up - you can add some pressure and say your offer is retracted if they hold out too long though.

I think it's quite normal to go much lower on your starting bid but I personally wouldn't go lower than 10% the asking price. You don't want to be seen as a time waster and being on good terms with the agent really helps. Don't give your best and final offer from the offset. Negotiations typically tend to be a series of back and forth so don't go in too high where you have no manoeuvre to increase your offer. I think it's normal (if not expected) for your first offer to be rejected. Don't be pressured to increase your offer or believe all the agent spin to make you play your hand. Always give your offer in writing and if or when you have reached your limit state clearly that this is your best and final offer.

Also if you are a FtB definitely use that to your advantage. Mention how flexible you are, with no chain. This is seriously your best playing card in the negotiations. Get to know the sellers situation and build your offer around their needs. If there is shown to be good will on your side it gives them much more confidence in your offer and with both parties feeling good about the deal.

DanSpooner

Amoux wrote: »

I'm a FtB so probably not the most experienced. But I learnt a few things when going through the negotiation process.

I think it's important that when you view these houses that you don't reveal too much, particularly over your financial position. This was my mistake.

Every agent I spoke to asked questions about my budget and how much I could feasibly go up. Reveal too much on this and they can and will use this against you in the negotiation. I'm really happy with the price I offered, but the agents did flush out my best offer and they knew it was my best offer as I perhaps revealed too much at the viewings.

Secondly how much you decide to offer is really dependant on how much you value it. Look at the property market, and how other comparables sold for. Also look at how long the house has been on the market for and what the sellers situation is. My house was barely on the market for a week so the sellers were (understandably) more reluctant to sell much lower. They sat on my lower offer for a bit as they wanted to see what else might come up - you can add some pressure and say your offer is retracted if they hold out too long though.

I think it's quite normal to go much lower on your starting bid but I personally wouldn't go lower than 10% the asking price. You don't want to be seen as a time waster and being on good terms with the agent really helps. Don't give your best and final offer from the offset. Negotiations typically tend to be a series of back and forth so don't go in too high where you have no manoeuvre to increase your offer. I think it's normal (if not expected) for your first offer to be rejected. Don't be pressured to increase your offer or believe all the agent spin to make you play your hand. Always give your offer in writing and if or when you have reached your limit state clearly that this is your best and final offer.

Also if you are a FtB definitely use that to your advantage. Mention how flexible you are, with no chain. This is seriously your best playing card in the negotiations. Get to know the sellers situation and build your offer around their needs. If there is shown to be good will on your side it gives them much more confidence in your offer and with both parties feeling good about the deal.

Really good write up and thanks so much for the info! How would you avoid giving too much about our financial position away? What do they need to know and what do they just want to know for their advantage? Our max would probably be £400k but we’d love to look at houses up to £425k and put in lower offers if we like the property, so we want to give them enough information so that they allow us to view those properties but not too much where they’ll use it against us as you said.

Mrs_Soup

Whatever you say your budget is the agents will likely show you things that are a bit above that because of potential for negotiation, possibility of you finding a few extra £s etc. so viewing at 425 on a budget of 400 is not unrealistic. When we bought a decade ago we had a budget of around 350, we looked at properties priced from 275 up to nearly 400. Agents tended to send us the 350-375 ones mostly. We eventually bought at 355 on a house listed at 365. Our own house was on at 225 and we sold for 212.5. I think all concerned felt they had got a good deal.