How to Negotiate House Prices

If you are looking to purchase a property, one of your main goals is likely getting the best price you can. Buying a home can be expensive, so it only makes sense to grab a bargain where possible. 

Not many people are aware that you do not need to accept the initial offer. With any sale, there is always room for negotiation, but you do have to show a certain level of respect when negotiating the price of a home.

At Lyons Estates, we have years of experience in the real estate market and through our years in the industry, we have learned a lot about negotiations. 

Here are the best ways to negotiate house prices, for everyone from first time buyers to those already on the property ladder and looking for their next dream home 

Buyer and Seller: Have an Understanding of The Market

Before you make any initial offers, it is important that you do the necessary research into the area that you are interested in. Look at similar properties to the one you wish to bid on to get an idea of the average price in the area. 

Understanding the average price in your local property market will help you form a fair offer. If your offer is rejected and deemed as  unreasonable, you can back up your offer by informing them that it is within the means of the local area.

Get Your Mortgage in Principle

If you do not already have the funds secured to purchase the property, you must ensure that your mortgage is in principle before making any offers. By knowing exactly how much money you have available, you can better plan the offer that you make. 

Knowing how much you are able to offer also puts you in better stead with your real estate agent, as it allows them to better navigate what you are able to afford. Having a lower and higher offer range in mind will better prepare you when negotiating. 

Make a Reasonable Offer

The last thing that you want to do when trying to acquire a property is insult the seller. You have to consider that the seller may have an emotional attachment to the property, and if you undervalue the property, they may no longer want to work with you. 

Sure, you can push it a little, but when negotiating with a seller, make sure that your offers are reasonable and respectful. 

Remember to Be Flexible 

Being flexible about money can be intimidating, but a little flexibility can help you secure the property for a good price. 

If you are flexible when it comes to closing dates and some of the proposed contingencies of the sale, you may find yourself getting a really good price on the property. 

Remember that a big part of any negotiation is being personable. If the seller likes you, they may be more inclined to give you a better deal. 

Seek the Support of a Real Estate Agent

One of the best ways to negotiate a house price is with the help of an expert real estate agent. From our experience, working with a real estate agent is one of the easiest ways to complete negotiations if you have no experience in the area, especially if you are looking to purchase a property in a city or busy area. 

For example, if you are looking to purchase a property in Liverpool, you would likely get a better price if you work with estate agents in Liverpool city centre. 

Real estate agents have years of experience in their field, which gives them the necessary confidence to be able to push it slightly while also knowing exactly when to stop and remain respectful of the seller. 

Real estate agents also have more connections, meaning they may be able to put you in touch with someone open to negotiations, so working with a real estate agent is likely your best plan. 

When Can You Be More Audacious With Your Offer?

Every situation is different, and there are no set criteria for when you can be more audacious when negotiating a price, but there are usually some signs as to when you can push it slightly.

Remember to consider this on a case-by-case basis and consider the seller’s temperament before making any decisions. 

Here are some examples where you can ask for further reductions. 

If The House Has Been on The Market For a While

If the property has been on the market for a while, you may be in a better position to negotiate a lower price. Selling a property can be lengthy and exhausting, and many sellers tend to underestimate the difficulty.

If a seller has been trying to sell their property for a long time, they can often be persuaded to lower the price slightly. Not being able to sell a property can be incredibly disheartening and sellers often reach a point where they will do anything to move the property on. 

It is still important to remain respectful, even if the house has been on the market for a long time. The last thing you want to do is insult the seller. While we can appreciate that buyers have many costs to contend with, you should also consider the costs that the seller has to incur. So, it is important not to be too disheartened if you don’t get the price you expect. 

The Seller Wants a Quick Sale

If you meet the seller of a property and they make it clear that they wish to sell quickly, this is essentially an open invitation to negotiate. A seller who wants to sell the property is more likely to accept a lower offer if it means selling it quickly. 

Keep in mind that people who want a quick sale often do not want to spend a lot of time negotiating, so be very deliberate with your offers and do not drag the process out. The general recommendation is to offer 5-10% lower than the asking price. 

You’re The Only Interested Party

If you can prove that you are the only party interested in the property, you will have a huge advantage. Nothing is worse than putting an offer on a property only to be outbid, so in the rare situation that you are the only interested party, you must make the most of it. 

If you bid with the support of a real estate agent, they can tell you if someone else is bidding on the property by communicating with the seller. Based on upcoming housing market predictions, many sellers are looking to sell their properties as fast as possible, so be sure to take advantage of that. 

Find the Perfect Property For You With Lyons Estate Agents

Hopefully, this blog has guided you in negotiating the price of a house you wish to purchase. As we have already mentioned, we strongly recommend that you work with a real estate agent to receive the best deal possible. 

Looking to buy a property in Liverpool or the surrounding areas? Get in touch with our team today.