Here are 7 simple ways to haggle down the asking price so you can make big savings on your new home - even if you're not a natural at negotiating.
A house is likely to be one of the biggest purchases you ever make, and knocking the price down by even a couple of percent could save you thousands of pounds.
Here are our 7 top tips on haggling down the price of your chosen property.
1. Do your research
Knowing the ‘going rate’ for other properties in the same area is a must when you're negotiating on the price of a property you want to buy.
If you can argue that the asking price is above what similar properties sold for nearby you will have a strong case for a reduction in price.
Visit the Land Registry website to search your local area to find the average house price, or property sites such as Rightmove to find specific sale examples.
You should also check the asking price of other properties currently on the market and see what they offer in terms of space, features and presentation.
- If they are of a similar standard but the asking price is higher then the owners of the property you're looking at could be struggling or in a hurry to sell – both of which could work in your favour when negotiating over the price.
- If other properties are of a higher standard but going for an equal or lower price you need to question whether they'd be a better investment than the one you're currently looking at.
- If other properties are of a similar standard but are on the market for less than the property you want to buy, you can use this to your negotiating advantage.
If you think the property is overpriced mention it to the estate agent - they may feed this back to the owners and who could drop the price of their own accord.
You should also check when the property was first listed on the estate agents website, or property websites such as Rightmove and FindaProperty. The longer that the owner has been waiting to sell the more likely that they will be willing to lower their asking price.
You should take this further by asking the agent how many viewings the property has had and whether it's received any previous offers. If there hasn't been a great deal of interest it gives you licence to go in with a lower bid when you start negotiating.
If you discover that the property has had lots of viewings but no offers then quiz the estate agent about why they think this is the case and use this knowledge to your advantage.
2. View it thoroughly
In reality often you can tell quite quickly if you like a property or whether you don’t ever want to set foot in the house again. However, if you are interested you shouldn’t get swept away with the excitement of finding somewhere you'd want to live.
Any flaws or work that needs doing represent an opportunity to knock some money off your offer price. So taking the time to thoroughly inspect the property, inside and out, could give you the ammunition you need to negotiate.
Estimate the cost of any work required and take this amount off your offer price - you'll be justified in doing so.
You should also find out whether there are likely to be any major expenses in the near future - ask when the boiler was last serviced, when the roof was last repaired (or resurfaced if it's flat) and when double glazing was installed. Again, if work is likely to be needed in the near future you have a legitimate reason to go in with a lower price.
You should also consider whether parts of the property need redecorating and how much this might cost and factor this into your negotiations too.
For more information on what you need to do when looking round a property, read our 11 Secrets for Successful Property Viewing.
3. Promote yourself
It is a fair to say that not all buyers are equal in the property market. If you are a first time buyer, paying in cash or have already sold your home then you will be a much more attractive buyer than someone waiting on a long property chain.
Let the estate agent and owner know that you are a desirable buyer and you will have more weight when haggling over the asking price.
4. Be energy conscious
All homes must now issue an Energy Performance Certificate or EPC, this lets you know exactly how energy efficient a property is and what needs to be done to improve it further – it is this piece of paper that can also be a handy bargaining tool.
If you know that the property you have your heart set on is only half as energy efficient as it could be you could ask that the costs of improving this be factored into the sale price.
For more information on EPCs, read our guide The Piece of Paper That Will Help You Sell Your Home .
5. Imply interest elsewhere
There is no harm when you're looking around a property or haggling over price to indicate that you are also interested in another property in the area – even if this is not strictly true.
It’s widely accepted that estate agents will imply that there has been lots of interest in a property to try and force a buyer’s hand, even when the housing market is approaching a snail’s pace - so letting them know you have several other options may mean they are more open to reducing their asking price.
6. Start low
It may be that you have to put in an offer on the property before you get any reaction from the seller.
If this is the case put in an offer below what you are actually willing to pay, this will then allow you to up your offer at a later date which will then seem more attractive to the seller.
It’s also wise to explain your offer; state exactly what work the house needs and how much it will cost, or that other properties of a higher standard went for less than the listed price nearby.
Explaining your offer in this way not only makes the seller think twice about their valuation but also makes you appear serious about purchasing the property by showing that you haven’t simply plucked a number out of mid air.
7. Ask for extras
If the person selling the house isn’t willing to budge on price then you may want to haggle over the additional costs you face when buying.
It’s estimated that the cost of actually purchasing a house can easily exceed £5,000 when you consider legal fees, valuations fees and surveys.
Asking that the seller contribute towards these fees could be a good way to cut the cost of purchasing the property and save hundreds or possibly thousands of pounds – even if you don’t manage a reduction in that actual house price.
You could also ask for certain things, such as curtains and appliances to be left by the current owners to reduce your set up costs even further.
