You are here: Home - First Time Buyers - News -

How to haggle when buying a property

Written by:
Five top tips to help you negotiate a better price on your new home
How to haggle when buying a property

Three in 10 homeowners didn’t negotiate at all on the price of their current home, missing out on huge potential savings because of their fear of negotiation, according to Barclays.

In fact, the mortgage lender found that Brits are more likely to negotiate on the cost of a used car than on the more expensive price of their new home.

Over one in five Brits (22 per cent) admit they just don’t know how to negotiate, while 17% are scared of losing the property if they try to haggle.

One in 10 just want to get the buying process over and 8% are too embarrassed to haggle.

Increased stress

Younger homeowners (aged 25 to 34) are prone to experiencing the most anxiety or stress when negotiating, compared to those aged 65+ who are much more comfortable with the process.

Rob Smith, head of behavioural finance at Barclays said: “Buying your first home is a particularly emotionally laden experience, and combined with having no prior experience of the process, its unsurprising that younger homeowners find it tough. However, if your aim is paying the lowest price possible then there are a couple of top tips which could help you along the way.”

How to haggle

Do your research – Never enter a negotiation without having done extensive research. Check out the surrounding area and what the houses are like, look at the local schools, shops and facilities, and crime rate. Don’t forget to check how long the property has been on the market, and if the price has been reduced already. You should come armed with the information, as well as questions or issues you want to raise.

Know your competition – It’s worth checking if there is anyone else also offering for the property – as this will affect the dynamics between buyer and seller. You can always increase an offer that was too low if there are no other bids – but not if someone else’s bid gets accepted. One useful tip is to try and understand the mind set and emotions of the seller, perhaps they are keen to sell or they have already reduced the price.

Know your end goal but also be realistic – It’s important to have in your mind exactly what you want out of your property, and your financial limits. Estate agents may show you properties outside of your price point, but take a step back and make sure it’s really what you want – and can afford – before you start haggling.

Find the communication style suitable for you – Some find face-to-face meetings easier, in order to get a feel and understanding of the person you’re negotiating with. In the current climate, this is less easy to arrange and many don’t want to meet in person. However, not meeting face-to-face may also help you disconnect emotionally from the seller and it reduces feelings of confrontation, which most people shy away from. But whether you meet face-to-face or via the phone, it’s crucial to always follow up in writing after any conversation you have, as keeping a paper trail will help leverage any potential fallbacks.

Be patient and use time to your advantage – Buying a home is an important process, and for many it’s the most expensive purchase they’ll ever make. So, let yourself take the time you need to feel happy with your offer; you don’t want to feel pressured to make an offer or ultimately regret anything, and no matter how much you love this one, you will find another you love even more.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Six bank statement mistakes that can ruin a mortgage application

Being overdrawn and having a history of payday loans can be red flags to lenders when they...
Six bank statement mistakes that can ruin a mortgage application

Fancy fixing your mortgage rate for 40 years? Don’t forget about your pension

Super-long mortgages are becoming more popular but, if you need to make monthly repayments...
Fancy fixing your mortgage rate for 40 years? Don't forget about your pension

First-time buyers still facing significant deposit barrier

It's getting tougher for aspiring homebuyers as house prices rise faster than wages
First-time buyers still facing significant deposit barrier

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators