Avoid paying over the odds when you’re making an offer on a house with these 8 tips on how to negotiate on a house price:
Don’t give your financial hand away: When first contacting estate agents, downplay the amount you are willing to spend. Estate agents tend to show you homes that are slightly above your limit, and it will put you in a stronger position when it comes to negotiation. Likewise, if you fall in love with a property when viewing it, don’t declare that you’ve finally found your forever home. By being too keen, the agent and seller will think you may be willing to pay more. Play it cool, and ask questions that will set you in good stead for the negotiation process.
Start low: When you are making an offer on a house, a good rule of thumb is to offer 5% to 10% lower than the asking price. Sellers often take this into account and market their property for more than they would accept. The agent will normally tell you of any bids that trump yours, and give you a chance to offer a second or even third bid.
Beware of offering above the asking price: You should only offer more than the asking price if you know the seller has already been offered that, or if you are really worried about not getting your once-in-a-lifetime dream home and you think there are lots of other buyers.
Stay polite and calm at all times: You’ll only alienate everybody if you get irritated.
Play hard to get, but stay realistic: If you think the seller is desperate, it is not in your interest to appear too keen.
Consider contacting the seller directly and negotiating in person: But remember they could be harder to negotiate with than the estate agent who wants to close the deal as soon as possible.
Don’t be overly influenced by other things thrown in with the deal: For example, unless very new, second hand white goods are usually worth very little and it’s often less hassle to sell them with the house than move them.
Consider using a buying agent: A buying agent’s job is to find their client the property that best fits what they are looking for and give an informed view of the property’s value. They’ll negotiate the price too.
Article taken from HomeOwners Alliance - Written by Angela Kerr
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