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First-time Buyer

Six in 10 don’t know when to negotiate on price during a property purchase

Joanna Faith
Written By:
Joanna Faith

Love it or loathe it, understanding how to negotiate can be a valuable skill to have in the homebuying process

Six in 10 people admit the biggest challenge when buying or renting a home is knowing when to negotiate.

That’s despite the same number claiming to be confident negotiating over property prices or rent, according to Douglas & Gordon.

The estate agent discovered that 36 per cent of people typically avoid negotiating due to anxiety. But it’s a vital skill to have, so they’ve shared some expert advice on how to be confident and get the property deal you want.

Key things to remember when negotiating

1. Use a trusted estate agent as a guide: Make the most of your estate agent’s expertise, local area knowledge and market know-how.

2. Research the area: Around 11 per cent of Brits admit they don’t research areas before putting in an offer.

3. Show them you’re serious: You can jump to the top of the queue by demonstrating that you’re a serious and prepared buyer. If you can move fast, accommodate the seller’s timescales and show proof of funds, you could use this to your advantage.

What are we worried about?

Seven in 10 admit their biggest concern is losing the property or being outbid by another buyer.

It’s a valid concern. Right now, buyers and renters have very little negotiating power. Applicants expecting to negotiate or submit offers below the asking price run a high risk of being turned down, as we are in a seller’s market. Searches for property for sale have jumped by 55 per cent compared to last year, and demand for homes outweighs supply in some parts of the country.

James Redington, area director at Douglas & Gordon, said: “Whether you’re a first-time buyer or an experienced property owner, buying a house is a big deal, especially if you’re not sure of how or when to negotiate on the price.

“Of course, buyers are keen on potential savings, but demand is so high right now that sellers have the luxury of not having to lower costs. That doesn’t mean your dream home is unattainable, though. Suppose you have your heart set on a house. In that case, experienced agents can help you increase the chances of your offer being taken seriously by sellers.”