Ever haggled your way to a bargain at a street market? You’ll know that negotiation takes patience, preparation and good communication. This is especially true when it comes to negotiating the price of a house, which will probably be the biggest purchase of your life.
Unfortunately, the art of haggling doesn’t come to everyone naturally. Wondering how to get a home seller to a lower price? Our home buying negotiation strategy is the perfect place to start.
New home negotiation tactics
- Do your research on the property
- Be careful and don’t push too hard
- Play it cool
- Get a real estate agent to help you
- Start your bidding low
- Don’t give up when your offer is refused
- But know your limits
Do your research on the property
Doing your homework on the property and the surrounding area will strengthen your negotiating hand. Check the prices of local properties in the area and see how they match up. Learn about the seller and their reasons for selling. Find out how long the property has been on sale - if it’s been on sale for a while, you may have more room to ask for a cheeky price reduction.
Play it cool
In your eyes, this could be the home of your dreams. But don’t let the seller know that. While you shouldn’t be too critical about your potential home, feel free to point out any imperfections that might impact the price tag. If you act too keen about the home, the seller or agent will think you are willing to spend more!
Get an estate agent to help you
Buying a house is something we do infrequently, there's a lot to consider when assessing whether you are ready to buy a home. So once you have decided you are ready to buy, get as much support as you can. Starting with an estate agent. Estate agents act as the go-between between you and the seller. Though they might be acting in the interests of the seller, an estate agent can be crucial in helping you negotiate the price of the home.
Start your bidding low
Don’t let on about how much money you were willing to spend - it will only go up from there! Start by bidding slightly lower than the asking price - aim for around 5% to 10% lower. Sellers will often recognise the potential of lower offers, and take this into account when deciding on the price tag. Once you’ve tested the waters with your opening bid, you can go in with your second and third.
Be careful and don’t push too hard
Negotiation is a delicate balancing act - overplay your hand and you may end up alienating your seller. Keep things polite and cordial, and make sure you have a good reason to ask for a discount on the house. By repeatedly asking for cheeky price reductions, your seller may think that you are not a serious buyer.
Don’t give up when your offer is refused
It can be easy to get dispirited in the face of rejection. But don’t let a refusal of an early offer put you off - a rejection is just the start of the negotiation. The seller is likely just waiting to see if they can push your bid slightly higher. If there isn’t much competition, the seller may even come back to you!
But know your limits
Know when to accept defeat in the face of a pricey home. Try as you might, some sellers just won’t be willing to budge on the price of their home. Whatever you do, don’t exceed the budget you have set yourself - this will only make it more difficult to repay your mortgage. You may not have got the home you want now, but this is all part of the home-buying process!
Find a new home with Peabody
Looking to start your home-buying journey? Peabody have a range of new build Shared Ownership and Help To Buy properties available throughout London and the South East, ideal for homebuyers looking to create an autumnal home of their own. Check out our property search to get closer to your dream home.Find a home with Peabody