In This Guide
Apply for a mortgage
Buying at auction
Buying in Scotland
Conveyancing
Find and view
Negotiate
1. How much to offer
2. It pays to negotiate
3. Buyer and seller positions
Plan your purchase
Success and failure
Surveys and valuations
To buy or not to buy
Negotiate
It pays to negotiate
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Everything in life is negotiable. So they say. But negotiating successfully to get what you want at the price that you want is not easy and doesn't come naturally to most people. In some countries, bartering is common practice with a purchase of almost any kind. In this country it is not so common and we seem to still feel awkward haggling, especially when we are more or less happy with the asking price. The result is that we can end up paying a sum that is not necessarily over the odds, but certainly an amount higher than we could have got away with.
If there are any hard-faced negotiators out there, we would like to hear your tips for negotiating. Let us know your advice. Here is what we have come up with so far:
- Most people usually negotiate with the agent. They act as
a buffer between you and the seller and take care of the sale.
They are professionals who do this for a living. They boost
their income from the commission that comes from getting as
good a sale price as possible and will probably be fairly ruthless
in their approach. Don't let them pressure you and don't necessarily
believe everything they say.
- There is nothing stopping you from trying to contact the
seller directly. Some vendors will be reluctant to let you talk
to them directly and some agents may not release their contact
details. And you may even find them tougher to deal with than
an agent, so beware.
- Always try to negotiate face-to-face. If you are a confident
communicator, you are likely to have much more success in your
dealings if you conduct them in person than over the phone.
It is easier to ascertain reactions when you can see facial
expressions and read body language.
- Keep your emotions in check and don't let them get in the
way. Don't get panicked into making an offer when you are not
sure about it, and don't let your personal feelings cloud your
judgement. Be confidant and calm - it's time to work the charm
or put on that ice-cool hard as nails persona. But remember,
above all, be nice to the seller. If it comes to a toss up between
two equal offers, this may swing it in your favour.
- Make sure that you try to project an air of confidence, so
that all parties involved feel that you know what you're doing
and are not out of your depth. Let them know that you've looked
at plenty of properties and that you know the market. Make the
seller aware of your position
and find out what theirs is.
- Don't show over-strong buying signals. You don't want to give
the agent any reason to believe you will go any higher.
- Anything you want to know, don't be afraid to ask. Asking
questions is a way of showing you are inquisitive and knowledgeable.
Asking awkward questions of the agent in a way that lets them
know you know you are asking an awkward question, can help put
them on the back foot and make them realise they are dealing
with a tricky customer. Don't overdo it if you are speaking
to the vendor though.
- Unless you are sure that the house is undervalued, or you
know that there are other parties interested, don't rush. Let
them sweat and don't rush back with a counter offer as soon
as you get a rejection. At the same time, don't be over cautious
nor too clever.
- Not many people try it, but sometimes the straightforward
"I haven't got time to waste" approach can work. If you are
making several offers on different properties, why not try it?
Tell the agent that you could go through the hassle of making
an initial offer, reducing the asking price, counter offering,
reducing the asking price again and then agreeing a final sum,
or you could just go straight in and agree the sum that you
are honestly willing to pay. Then make an offer ever so slightly
below your target price and say that you won't be making any
more offers. It may well get rejected at first, but if they
don't get any more inquiries quite soon, you may just get a
call from the agent telling you of a reduction in the asking
price…
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