How to Negotiate for a New Home: Top Tactics for Real Estate Negotiations

We British are a reserved bunch. Our default position is to keep our heads down and not make a fuss.

So when negotiating the price of a property, haggling can feel a little uncomfortable.

But considering the money involved and the fact that our home is probably our most valuable asset, that shouldn’t stop us from negotiating for the best deal. And it’s all about tactics…

Do your research

Find out about similar properties in the area and find out how much they sold for so you get an accurate comparison and a realistic benchmark figure.

‘Use property websites such as Rightmove as they are gold mines for understanding how much a property is worth by looking at what is selling nearby.

‘They also tell you how much the seller bought the property for,’ says Jonathan Bone, lead mortgage adviser at online estate agent better.co.uk.

‘Determine the maximum amount you are willing to pay for a home and start negotiations by proposing a price that is below your budget.

If your offer is rejected, politely point out any problems or repairs the house needs when you offer a higher price so the seller understands why your first offer was lower.”

If your potential new home needs repairs or maintenance work, a survey can help you bring the price down.

But be careful not to set your offer too low, as this can upset the seller’s nose and jeopardize your credibility with the agent.

Instead, rely on research to make your case, says Cliff Gardiner, head of sales at Berkshire Hathaway HomeServices London.

‘Ask the agent about any comparable sales he has completed in the past six months. A year ago the market looked different than it does now. Historical sales from a year or eighteen months ago are largely irrelevant.’

Ask the right questions

Before you negotiate, write down the non-negotiables so you have a clear list of what you won’t agree to and what you’re willing to give a little for.

“If you can say something about the less important factors, it should generate some goodwill with the seller,” advises Alex Oliver, director of purchasing agency Prime Purchase.

Targeted questions will also help you plan your negotiation strategy, says Jerome Lartaud, co-founder and director of property buying agency Domus Holmes Property Finder.

Don’t reveal your budget as the seller or real estate agent will always try to push it to the limit

This could include asking about the seller’s reasons for selling, the moving plans and the number of viewings or offers.

‘The realization that not all sellers have the same reasons or level of motivation to sell underlines the need for a tailor-made approach to negotiations.

“For example, a family moving to a new area or sellers who haven’t yet found their next purchase may be open to flexibility on timelines.

‘Offering some flexibility, such as delayed delivery, can increase the attractiveness and thoughtfulness of your offer.’

Be cool and flexible

There is often a difference between the value of a property and its sales price. So don’t reveal your budget because the seller or the real estate agent will always try to push it to the limit. And keep a poker face; if you are too obviously interested, it will reveal that you are willing to pay more.

‘Silence is golden. Staying silent in the middle of a conversation can be very powerful.

“Many agents are people pleasers who often fill awkward silences by oversharing information or ceding ground,” says Edward Heaton, founder of Heaton & Partners.

“If you casually suggest that you are looking at other properties in the area, the seller is more likely to accept your negotiated offer for fear of losing the sale,” adds Terry Fisher of We Buy Any Home.

Time is everything

Find out how long the property has been on the market. If it’s been a while, chances are the seller wants a quick sale, giving you room to negotiate.

“The timescale is large in today’s market, where transaction times are already long,” says Phillip Diggle, regional director of estate agency Gascoigne Halman.

‘If a property attracts a lot of attention but you can close the deal quickly, suggest a timeframe in your offer. It can mean differentiating yourself from the competition.’

Normally, the more time a property spends on the market, the more likely a seller is to accept lower offers.

But this should also make you cautious before rushing in, adds Jonathan Bone.

‘If a home is available for more than a few months, there may be a reason for this.

‘Issues such as a busy road, poor transport links or disruptive neighbors can be contributing factors, so it is important to do research to determine whether compromising on a cheaper property is a worthwhile trade-off given its potential downsides.’

Play to your strengths

Highlight what makes you an attractive buyer and then use this to your advantage when you start negotiating.

‘You can get away with a bold offer if you find a seller who needs to move quickly and you’ve positioned yourself as an attractive buyer, backed by a good lawyer,’ says Jason Corbett of Rowallan Buying Agents.

You may be chain free so you don’t have to wait to sell your property to buy theirs. Cash buyers are also much more attractive than others because you can move more quickly. Having an agreement in principle for a mortgage and a deposit will also put you in a good light.

And also look at the part. By presenting yourself as a confident, trustworthy buyer you can lower the home price.

Showing flexibility on moving dates also goes a long way to a seller, says Jonathan Rolande of the National Association of Property Buyers. It shows that you are cool and professional.

‘Don’t worry about small issues. Many offers fail because the buyer and seller cannot agree on the price for carpets and curtains. Don’t worry about the little things.’