How to Master the Art of Property Negotiation
Now is a great time to buy, with the majority of surveyors reporting a drop in house prices. If you are looking to take advantage of this market then you must first master the art of property negotiation.
When buying a home always remember that negotiating the price is an expected formality. It is not like walking in to a shop and paying a fixed sum, homes are very rarely sold at the price they are listed for. Taking this in to consideration most estate agents will deliberately mark the property value up, since they know that a negotiation process will take place. It is the estate agents task to sell that property for the highest possible price, as they operate on a commission. As a buyer you obviously want to pay the lowest price, thus, the negotiation process begins.
Do Your Research
While most estate agents will value a home based on what similar properties in that area have sold for, in truth the can list that property for whatever they like. It is vital then that you do your research to first assess if what is being asked, is reasonable. By searching online for ‘sold house prices’ you will find several leading property websites that will list all house prices paid across the UK since 1995, using information gathered by the land registry.
The current economical market also has a big impact on house prices throughout the UK. It is common in times of a recession to see a drop in first time buyers. As well as this, many home owners choose to wait until the market is more stable before advertising their home. This ‘slow market’ is the ideal time for buyers as house prices tend to dip.
What is For Sale
Before you make an offer you should determine upfront what is included in the sale. Many of these items can be used as negotiation leverage especially if they do not meet your expectations. Understanding why the property is for sale may also help in your negotiations. You will be surprised how flexible the seller could be on price depending on their situation. If the seller has already purchased a new home, or the property has been on the market for several months without interest, then they may be eager for a quick sale.
Let the Negotiations Begin
As you move into the negotiation process, make the seller aware of the reasons you have for arriving at your price you are offering. Evidence and persuasive comments will help the seller to recognise why you believe the property is not worth the listed price. Buyers are advised to hire a surveyor to determine if the property is in the condition stated by the seller. If it is not then not then it may give you more leverage in bargaining for a lower price.
Closing the Deal
Having a solicitor ready to handle the conveyancing once a sales price is agreed is your next step. This will help move the process along and let the estate agent know that you are ready to close the deal. It will also signal to the seller that you are serious about the sale. Once this is done, you can request the seller takes their home off the market. This discourages any further offers and reduces the risk of you being gazumped.
By following these steps you can become a master of property negotiating, bagging your dream home, without paying the full price tag.
Written by Andrew Potter, from My Online Estate Agent .
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