Whether you are buying your first home, upgrading or buying a second property; the majority of buyers in the market never try to negotiate or ‘haggle’ on the asking price a vendor has their home listed for. In reality the average home buyer could be saving thousands by simply asking the question ‘would you take a lower offer’.
If you do manage to overcome your fear of asking a home seller to discount their asking price and you find that they simply are going to move on price, there are a number of tactics you can try to make them reconsider.
- Show them comparable sold prices and listing.
If a homeowner is looking for a certain price for a property, and you have checked out a comparable property sales history website like Net House Prices; and can see that property on their street is selling for 30% less than they are asking – make them aware of this. The same goes if their neighbour is selling at a considerably lower price – advice you are looking at both properties and are very motivated by price.
- Get a full structural report on their property.
A full structural survey on a property will bring up every small flaw, giving you ammo to discount your offer to them. Anything that comes up on the report is potentially things you will have to spend on in the future, therefore property sellers must take this into account when it comes to selling.
- Offer a cash advance.
If the property seller is financially motivated, you can legally offer to pay their rental deposit on a property (if they are moving into rented accommodation) or offer them a cash advance before the property sale has completed. This does carry some risk and we would advice you see full legal advice before proceeding with such a transaction.
- Offer to buy for cash.
Being a chain free cash buyer is possibly the strongest position you can be in when it comes to purchasing property. This especially applies if the seller is financially motivated to move quickly. If you don’t have the cash to hand to buy out the seller directly you still have options to become a cash buyer yourself. One is to use a bridging loan, which often carry high fees but allow you to lend up to 100% of market value. If you are relying on your house selling, you could consider using a cash property buying company like Ready Steady Sell whom buy houses fast for cash. The only downside to using a ‘We Buy Any House’ type company like this is that you are never going to get full market value – however the amount you have to discount could equate to the amount of discount you ask from the seller of the property you are interested in.
What If The Vendor Still Won’t Reduce Their Asking Price?
At this stage the asking price if you have tried the 4 tips above without any success, there is one other trick you could have left up your sleeve. If they adamant on sticking with the asking price they have set out, you could agree to buy at that price – but insist they part with some goods they have in their home.
Whether it’s white goods in the utility; curtains, blinds and fittings or the oversized hot tub in the garden – insist they leave it as part of the deal! You never know, you could get them to leave an amount of valuables that equates to more than any discount you could have haggled off the asking price.