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Buying Plan Step 1: Research the market before finding a house to buy
How do you negotiate the lowest price?
Estate agents are tough experienced negotiators. When finding a house to buy, always remember they act for the seller. It's their job to get the highest price.
Information gives you negotiating power
You may not have an estate agent's experience. But you can improve your negotiation skills with research, and negotiating know-how.
Negotiating on house price, takes planning and preparation
Know how to use your bargaining power for the lowest price.
- Get to know your local market. Take time on research
- Find how to negotiate effectively with estate agents
How tough can you be when negotiating? What price should you offer?
It depends where you are. Don't be too influenced by asking prices. Or by the estate agent saying you're offering too little.
Sellers aren't always realistic, despite a market downturn
You need to judge when your offer is realistic. When to draw a line whilst retaining credibility as a genuine buyer.
Get it right and you can assume the estate agent will advise the seller to accept - or risk losing a realistic offer.
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Research is key to negotiating on price, when finding a house to buy in a buyers' market
Prices can vary widely from area to area, even from road to road within towns. Be able to recognise best value. Spot sellers who are keen.
Before making an offer to buy a house, research your area in depth. Know prices. Recognise value.
- Not all asking prices will be realistic
- Some homes may now be very overpriced
- Not all sellers will negotiate on price sensibly
To negotiate better on price, start research early, well before finding a house to buy
It can take 2 - 3 months to know the local market. To judge when homes are realistically priced. Or spot any that seem over, or under valued.
You'll be in a stronger position to negotiate a lower price.
Keep watching, know the market and the sellers in your area
Monitor adverts continuously. Reductions and slowly moving property will indicate if prices are too high. Sellers may be forced to negotiate price sensibly.
- Identify genuine keen sellers who must sell. They could be more open to price negotiation
- Identify homes that have been sticking, sellers may have to look at offers
- Use viewings to watch for signs a seller is anxious. It could mean more scope to negotiate on price
Click for a brief summary of the main house price reports with direct links to the sites
Mortgages: research the market well in advance
Lenders have cut back with the credit crunch. Try to agree a loan in principle before buying. You'll be in a stronger negotiating position.
The major mortgage lenders such as Halifax and Nationwide include house price information and mortgage calculators. The selling estate agent may want to arrange your mortgage. Is this best for you?
Want more detailed advice? How researching the market helps you save money?
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Read more preview information in Step 2.
*Based on monthly reports from Halifax, Nationwide, Rightmove.
TIP
Some sellers who ask too much may run out of selling time
Watch for homes that seem to be sticking, and for price reductions.
It's worth noting some sellers are not reacting to a falling market.
They are holding out for too much. Some homes are sticking. It's worth watching these.
If they wait too long, they could run out of selling time and have to be very realistic on price.
Negotiate on house price better: start research early
Summary of main sites providing house price information
Give yourself maximum negotiating power, first time buyers especially.
Build your market knowledge early, well before buying a home.
When finding a house to buy you'll be in a strong position to:
Pitch your offer at the right level
Target the lowest price
Negotiate better with agents
Compare insurance terms with your lender's quote
Tailored, low cost home insurance. Endsleigh specialise in providing competitive and highly insurance for career people.
You don't have to insure with your mortgage lender. EstatesForum has partnered with Endsleigh to offer you
highly competitive insurance deals with an efficient first class service.
Scotland. Property law differs
Property purchase is by sealed bid. General advice, research, planning a purchase should be helpful. The sections on negotiation won't apply.