How to negotiate buying a house: 7 Tips

We all have a figure in mind that we would like to save towards a deposit or other expenses that go towards buying our first property. But, it’s also important to nurture the art of negotiating. Several unspoken rules arise in the homebuying journey, especially if you’re a first-time buyer. And if you’re not properly prepared, you could fall into the trap of spending more than you need to. To help equip you for this in the home-buying process, here are tips on how to negotiate buying a house

1. Ask for repairs

When buying a new house, it’s important to thoroughly check the quality of the property through home inspections or even as early as your first home viewing visit. By doing this, you can report to the seller any specific requests for adjustments or property repairs. This way, there is room for negotiation in your offer. This approach means there is less for you to refurbish when you move into the property. You’ll be able to enjoy your house more when you move in knowing there are no major repairs required.

2. If possible make a cheeky offer

You can make an offer lower than the asking price, but consider the context before you do this. Offering too low could offend the seller. For example, if they’ve recently dropped the asking price from their original, asking for lower could damage the relationship with the seller. This could then make you a less favourable option for them if you are up against other interested buyers.

If you are going to try to negotiate for a lower offer, make it reasonable. Also, ensure you come equipped with the particular reasons as to why you have offered that price.

For example, has the house been on the market for a long time? Has the seller expressed that they want to sell the property quickly? Are you able to suggest a completion date in favour of the seller? These are just a few things that could convince the seller to accept your lower offer to their asking price.

As a guide, try not to negotiate no more than 15% below the asking price. Negotiating too low could affect relations with the seller.

3. Research beforehand

Good negotiating happens when you’ve done thorough research. This should begin the moment you have seen the asking price and before you book the house viewing. Looking at recent sales in the area, and the history of the property are basic steps to take. It helps inform how you will negotiate an offer when you eventually get to that point with the buyer.

4. Stick to your budget

Decide what budget you have in mind and be determined to stick to it. This mindset will also help frame how you approach what you offer to the seller. When you’re determined to stick to your budget you’ll be in a good position to negotiate.

5. Communication is key

Of course, buying a home is strictly business, but even within business, there is room to nourish relationships so that you stand out against your competition (other interested buyers).

So if that means keeping in close communication with the seller and responding promptly when they get in touch, these are elements that can help enhance your relationship with them. The seller could take more of a liking to you than the other buyers and could give you a little favourable edge. However, of course, this is just an extra element and not the foundational thing when buying a home.

6. Be Fair when negotiating to buy a house

Whilst it’s important to have a set budget in mind that you’re unprepared to go over, the art of negotiation does require some flexibility so keep this in mind when you are making an offer. If you come across as too strong this could be off-putting to the seller. Be firm but fair when negotiating to purchase a property.

7. Know when to walk away

Whilst there is an eagerness to buy a home, it’s important to remember that it is probably one of the biggest deals you will make in your life. Therefore, if a seller is unwilling to negotiate on any level that works for you, it’s worth considering whether the deal is worth pursuing or walking away from. When it comes to buying a home, making decisions out of desperation can be detrimental. So be discerning to know when it may be best to walk away from a property that you’ve been looking at. No matter how far in the process you are in a deal, it’s better to walk away than regret taking on a deal you accepted.

Are you looking for more tips to assist you with how to negotiate when buying a house? Join The Homebuyers Club to connect with a community of fellow homebuyers and get access to in-depth resources.