Playing Hardball: Negotiating Strategies Every New Home Buyer Should Know
In real estate, it’s often said that everything negotiable. But is that necessarily true?
Let’s have a quick think about the facts. It turns out that buyers aren’t always in a position to negotiate. In places like London, for instance, there are often far fewer homes for sales than people who want to buy them. This means that buyers often have to clamber all over each other to impress the seller of the house. Often bids rise, and in many cases, buyers actually end up paying more than the asking price for the property.
Then there are other situations where the market favours buyers. Here there are more sellers than buyers. We’ve seen this sort of situation in places like Scotland and Lincolnshire where house prices are depressed compared to the rest of the UK. Buyers often get a good deal and can often snap up a bargain, paying less than the asking price.
In most circumstances, though, it’s a seller’s market, meaning buyers are going to have to negotiate hard to get a good deal.
Here’s are some tips on how to play hardball when it comes to negotiating on price.
Base Your Offer On The Home Value Instead Of The List Price
Sellers will often try their luck, putting their homes on the market at inflated prices. But that doesn’t mean that you have to pay what they’re asking. A much better strategy is to base your offer on the value of the home. The value of the home should bear some resemblance to the selling prices of other homes in the area. If the asking price of a home is much higher than the price for which other homes sold, you could get a better deal. Sites like http://www.ballantynes.uk.com have free valuation tools to give accurate pricing information.
If You See A Home, You Like, Move Fast
In the current market, new properties often sell very quickly. That means that it’s always a good idea to register your interest quickly. Remember, there are always people who will cut in later and make a higher offer.
Ask For Repairs
There’s a lot of truth in the adage, “if you don’t ask, you don’t get.” Sometimes it’s worth just asking a question and firing it out there. For instance, is the property damaged? If so, you could ask the seller to carry out repairs. Just make sure you make any demands for repairs after the house has been surveyed. This puts you in a much stronger negotiating position. Which.co.uk discusses your rights when homes are damaged.
Write A Personal Letter With Your Offer
Most sellers will just send a very dreary offer letter to the buyer. It’ll state their final offer in no uncertain terms. But it’s all rather abstract and unfriendly. Instead, why not send a postcard with a photo of yourself or your family along with the offer letter. This will help to tell a story. Suddenly, you’re no longer a faceless negotiator, but a real person with real needs. Often home sellers like to see that their homes are going to be passed on to people that will enjoy them.