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House price discounts

Journalist: Lana Clements, The Sun

ended 28. June 2023

Hello,

I'm looking for an expert or two who can help give me some practical usable advice on how buyers can haggle down to get the best discount when buying a house… 

Please, give a brief summary of tips and i can contact for further info. 

 

thanks

5 responses from the Newspage community

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Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Property sellers are far more likely to accept lower offers from buyers in the right positions. First-time buyers have no dependent chain and should be in a strong position to negotiate a good price. Don't be shy to play the game and put in a lower offer than the asking price - be confident. With mortgage offers being produced quicker than ever, coupled with a good solicitor, your offer should be accompanied by a 4-week completion timescale.

If you have a dependent sale, and your property is not sold yet, you're not in such a good position. Consider chain break bridging finance, which would take a buyer who has not sold into a cash buyer position, with completion timescales of around 4 weeks also. This gives you time to sell your property whilst being in pole position whilst offering.
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Elliott Culley
Director at Switch Mortgage Finance
If the property has been on the market for a while, there's more chance the seller will accept a lower offer. If it's only just come onto the market the clients will wait to see what offers come in before immediately taking your low offer. There is no harm in going in with a low offer as all the seller can do is reject it. Properties that require a bit of light TLC, give you more leverage to put in a lower offer. Provided you are happy to live in the property whilst you update it, you could get a cheaper deal.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
As a professional landlord that buys properties for a living, here are my thoughts. We have bought 6 houses in the last quarter or so, and we follow these simple steps:

1. Research the local market intimately to learn fair prices in the area. Know which street fetches more than the others
2. Target motivated sellers for better negotiation and remember the three Ds to identify them: Death, Divorce and Debt
3. Identify property flaws as leverage for a lower offer
4. Always be willing to walk away if the deal isn't favourable
5. Keep your budget and limits completely private during your negotiations. Poker face.
6. Cash buyers always have an advantage; show your financial strength
7. Consider professional representation for expert guidance and play fair but go hard

Finally, negotiate strategically, stay calm, and build relationships with local estate agents. Show them that you can perform when others get cold feet. You never know who might bring you the next deal.
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Graham Cox
Director at Bridging Hub
- Having a decision in principle ready and solicitor onboard to show you are a serious buyer.

- Being in a position to proceed quickly. In this market, having a buyer who isn't stuck in a long chain or having financing issues is all important.

- Decide on the maximum price you're prepared to pay and offering it at the outset but telling the EA/vendor it's your best and final price and whilst you hope it's accepted, you'll look elsewhere if it's not. If they decline, you could leave the same offer open for a couple of weeks in case they have a change of heart.

- Put all offers in writing and ask the estate agent to confirm back that it's been passed onto the vendor. Emphasize your ability to proceed quickly.

- Unless the property is listed at a very keen price, offering below asking price should be your default. It's a buyers market now.

- When making offers, remind the EA/vendor that house prices are falling and could easily fall 20% over the next couple of years.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
Get your ducks in a row - there is no point giving it the big un without your house in order. Speak to a broker who'll get your agreement in principle ready showing that you can get a mortgage, have your ID and proof of deposit ready as estate agents need to verify this and have your solicitors ready to go - if you aren't going to spend 2 weeks mucking around finding one, thats 2 weeks quicker that your sale can go through.