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Property Negotiation - My Online Estate Agent

A Guide to Mastering the Art of Property Negotiation

Finding your dream home is one thing, getting it for your dream price is another altogether. Properties rarely sell for their asking price, with most estate agents working on a commission model, it is in their interest to sell for the highest sum they can.

The estate agent determines the sale price based on similar homes for sale in the area. As a buyer it is your goal to pay as little as possible, gaining the biggest savings. As an estate agent takes a percentage of the sale price they are well versed in art of negotiation, but with the right training you too can master these same skills by following the four steps below.

Research the Market
The housing market fluctuates based on the current climate and global economic trends. Start by research this and understand what is affecting these figures. If the market is slow, this is known as a “buyers market” and considered to be the best time to be on the property ladder. To better determine what type of price to offer a seller, research what similar homes have been selling for. You can look up the sold prices on the land registry and there are lots of sites such as Zoopla, that have this information readily available and easily searchable.

Start Negotiation Discussions
It is wise to hold back from making an offer before determining exactly what is included in that sale. Discuss this with the seller’s representative, if you discover that there are specific things that are not included, such as a garage or allocated parking then you may be able negotiate a more favourable price. Be sure to get all of this agreed and in writing as early as possible. Try to gain an understating of the seller’s motivation behind the sale. The property may have been on the market for several months with the current owners already living in a new home while paying two mortgages. If this is the case then they will be far more eager for a quick sale and open to offers.

Bargaining
When it comes to negotiation, be prepared to provide your reasons behind why you have arrived at the sum you are offering. By giving this evidence you will make the seller aware why their home is in fact not worth the price that it is listed for. Buyers are advised to hire a professional surveyor to assess the property and determine if it’s in the condition that the seller has stated. If it’s not in sound condition, buyers can discuss a lower price based on the survey findings.

Closing the Deal
Once a sale price has been agreed upon by both parties, advice the seller that your mortgage has been pre-approved and that you are in the process of obtaining your mortgage commitment from the bank. This should give the seller peace of mind to now remove that property from the market, reducing any chances of being gazumped.

By following these easy steps you too can master the art of property negotiation, getting your dream home for your dream price.

Uploaded October 2011

Andrew Potter

Andrew Potter set up My Online Estate Agent after working in the property sales sector for several years and spotting a demand for a low cost estate agent service. My Online Estate Agent provides all the online tools and guides to help you sell or rent your property. Visit My Online Estate Agent to find out how to advertise on top UK property portals.

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