Property -

Mastering the art of negotiation: Recommended approach when buying a house

James Hilton, Mortgage Adviser, explores some tried-and-tested tactics to help you navigate the negotiation process successfully.

Published

17th July 2024

Author

James Hilton

Category

""

 

Negotiating a property purchase is a delicate dance, requiring finesse, strategy, and a keen understanding of the market. Whether you are a first-time buyer or a seasoned investor, employing the right negotiation methods can make all the difference in securing the best deal on your dream home.
 

How to negotiate house prices when buying: eight tactics for success

Here are some tried-and-tested tactics to help you navigate the negotiation process successfully when you make an offer on a property:

1. Do your homework: Knowledge is power in negotiations. Before making an offer, research the local real estate market, recent sales in the area, and the property's history. Understanding the property's value and any potential issues will give you a solid foundation for negotiation. This information will also help you understand your borrowing needs when talking to your bank.
 

2. Set your limits: Determine your budget and then stick to it. Set a maximum price you are willing to pay for the property, considering factors such as arrangement costs, repairs, and potential renovations. Knowing your limits will help you negotiate confidently without overextending yourself financially.
 

3. Start strong: Your initial offer sets the tone for negotiations. Make a competitive but reasonable offer based on your research and the property's value. Starting with a strong offer shows the seller that you are serious and can lead to more favourable terms down the line.
 

4. Be flexible: While it is important to stick to your budget, be open to compromise during negotiations. Consider factors such as completion dates, contingencies and repairs when structuring your offer. Being flexible can help bridge the gap between you and the seller, making it more likely for them to accept your terms.
 

Mortgages designed around you

Choosing the right mortgage is a decision that requires careful consideration and expert guidance. That is why our team of mortgage advisers are here to support you every step of the way. Whether you have questions about our mortgage products, need help understanding your options, or want to explore financing possibilities, we are here to help.

With our range of fixed rate and tracker rate mortgages, we are committed to helping you achieve your property goals with confidence.

Find out more.

Mortgages from £500,000. Your home or property may be repossessed if you do not keep up repayments on your mortgage. Over 18s only. Credit is subject to status and approval. 

5. Highlight your strengths: In a competitive market, sellers are looking for buyers who are serious and financially capable. If you are pre-approved for a mortgage or can make a larger deposit, make sure the seller knows. Demonstrating your financial strength can give you an edge in negotiations and increase the likelihood of your offer being accepted.
 

6. Build rapport: Establishing a good relationship with the seller or their agent can work in your favour during negotiations. Be polite, respectful, and professional in all your interactions. Showing genuine interest in the property and understanding the seller's needs can help create a positive atmosphere for negotiation.
 

7. Know when to walk away: Sometimes the best negotiation tactic is knowing when to walk away. If the seller is not willing to budge on price or terms, do not be afraid to walk away from the deal. There are plenty of other properties on the market, and staying firm on your limits will prevent you from making a decision you could later regret.
 

8. Consider hiring a professional: If negotiations become complex or contentious, consider hiring a real estate agent or property lawyer to represent you. Experienced professionals can offer valuable insights, negotiate on your behalf, and help navigate any legal issues that may arise during the process.

 

Ready to make an offer on a property?

Mastering the art of negotiation is essential when buying a house. By doing your homework, setting clear limits, and employing effective negotiation tactics, you can increase your chances of securing the best possible deal on your new home.

Remember to stay flexible, build rapport with the seller, and know when to walk away if the terms are not favourable. With the right approach, you can turn the negotiation process into a win-win situation for both parties involved.

 


Further reading

 

 

The property ladder: how to give your loved ones a step-up 

How parents, grandparents or other family members can support their loved ones to navigate the path to homeownership.

 

Location: The key factor to consider when choosing a home 

The importance of location when choosing a home cannot be overstated. In this article we consider why location is important and how it can significantly affect your lifestyle and wellbeing.

 

Thinking about selling your home? Consider home renovation first 

Renovation is a fantastic way to increase the value of your property while realising the added enjoyment of having a refreshed space.

Becoming a client

Take control of your finances today by completing our enquiry form. Alternatively, you can call us on the number below and one of our team will be more than happy to talk about your future.

+44 (0)20 7012 2500

This is required

Commercial questions

Is your business registered in the UK?

This is required

This is required

This is required

To join Arbuthnot Latham, new commercial clients need to bring +£500K of deposits or +£1m borrowing. Do you meet this criteria?

This is required

This is required

Thank you for your interest in joining Arbuthnot Latham.

Based on your responses, our commercial services are not the right fit for your current business needs. If your circumstances change, please do get in touch.

You may be interested in related services offered by Arbuthnot Latham:

Funding to manage cash flow and access the right assets.

  • Lending from £25,000
  • Available for SMEs and independent finance houses
  • Unregulated lending

Lending solutions, plus cash flow loans for mergers and acquisitions, growth and refinancing.

  • Lending from £1m
  • Available for business-to business SMEs and mid-market corporates
  • Unregulated lending

Tailored lending, contract hire, rental and finance packages serving the manufacturing, commercial vehicle, bus and coach sectors.

  • Lending from £25,000
  • Available for corporate entities
  • Unregulated lending

This is required

Based on your information, we may be able to help. Continue completing this form to request a call back, or call +44 (0)20 7012 2500.

This is required

This is required

Private questions

New Arbuthnot Latham clients are required to bring at least £500,000 in deposits, investments or borrowing. Are you looking to deposit, borrow or invest a minimum of £500,000?

This is required

This is required

This is required

This is required

Thank you for your interest in joining Arbuthnot Latham.

Based on your responses, our services are not the right fit for you at this time. If your circumstances change, please do get in touch.

You may be interested in related services offered by Arbuthnot Latham:

A range of fixed term deposit accounts to help you achieve your financial goals in a secure, low-risk way.

  • Deposit between £10,000 and £250,000
  • No fees
  • Protected by the Financial Services Compensation Scheme

A form of finance which allows you to spread the cost of the asset over time; often used to finance luxury, classic or super cars.

  • Lending from £25,000
  • Unregulated lending

This is required

Private - International questions

Are you a UK passport holder?

This is required

This is required

This is required

To select multiple items, hold down the Ctrl (PC) or Command (Mac) key.

Are you a UK resident?

This is required

This is required

This is required

Thank you for your interest in joining Arbuthnot Latham.

Based on your responses, our services are not the right fit for you at this time. If your circumstances change, please do get in touch.

You may be interested in related services offered by Arbuthnot Latham:

A range of fixed term deposit accounts to help you achieve your financial goals in a secure, low-risk way.

  • Deposit between £10,000 and £250,000
  • No fees
  • Protected by the Financial Services Compensation Scheme

A form of finance which allows you to spread the cost of the asset over time; often used to finance luxury, classic or super cars.

  • Lending from £25,000
  • Unregulated lending

This is required

Based on your information, we may be able to help. Continue completing this form to request a call back, or call +44 (0)20 7012 2500.

This is required

This is required

This is required

Please enter your contact details

This is required

This is required

This is required

This is required

This is required

This is required

This is required

This is required

This is required

You can withdraw your consent at any time by contacting the Data Protection Office using the details in our Privacy Notice.

Submit Container

Borrowing

Flexible lending solutions based on expertise and an understanding of your needs.

 

Related services

Private Banking  •  Borrowing  •  Savings Accounts

Author -

James Hilton

James Hilton

Regulated Mortgage Adviser

James Hilton is a Regulated Mortgage Adviser and has been at Arbuthnot Latham for five years. He has thirty-five years’ experience in finance and specialises in advising clients on purchasing their residential properties.