Whether you’re looking to buy your first home or are moving on from another house, the process of haggling can be daunting when it comes to putting an offer in and knowing a sensible price to start with often depends on multiple factors.
Buying a home is likely to be one of the biggest investments you will ever make, which is why the opportunity to save a sum on the asking price should not be missed. Research from Barclays Mortgages revealed that more than half of first-time buyers did not negotiate on the price of their home, whilst one in five pay above the asking price on their first home.
We’ve outlined some key points for you to consider when making an offer on a property, against the asking price.
Assess the market in your area
It’s always a good idea to know a bit about what’s going on in the property market in your area. If you’re interested in a property, have a look at recent sales of similar homes in the area to see how much they sold for and keep this in mind for how much you’re willing to offer.
How long has the property been on the market?
Similarly, assess the listing of the property you’re viewing or interested in to see how long it’s been on the market, as well as whether the asking price has come down in this time. If it’s been listed for some time and you know there are no glaring issues with the property itself, this could suggest that it’s being marketed at a price way above its value.
Alternatively, if the price has been reduced once or even multiple times, this indicates that the seller is struggling to sell the property, which highlights a good opportunity for you to go in with a low offer and work up slowly.
Be patient and willing to walk away
As we highlighted with keeping in mind the maximum you are willing to offer, you should also be prepared to walk away if you can’t reach a compromise. It’s easy to fall for a property and let this cloud your rationale when it comes to haggling, so keep a clear head, be prepared to make multiple offers and, if necessary, walk away.
Be as objective as you can
Again, it’s all too easy to get caught up in the excitement of finding a property you love, but if you’re interested in a property you should look to view it again and inspect it more objectively for areas that will need work or improvement – this is a great way of identifying an opportunity to knock some money off of the offer price.