Negotiating an offer – how low should you go?

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When it comes to making an offer, the advice usually given is to, “offer 5 – 10% below the asking price”. This system is now very antiquated, and not relevant to the modern house negotiation. To negotiate professionally, you need to research the property to push the asking price in the right direction. So what do you need to look for when negotiating an offer?

Trends

The current market trends currently show that one third of property asking prices are reduced over their time on the market. You can search for current market trends on Zoopla by sorting local properties by “most reduced”. This can show you areas which are struggling to sell, and direct you to a good deal.

Amenities

Check out school catchment areas, local transport links, and area boundaries. Offer prices will be dropped if there is a distinct lack of local amenities.

Pros/Cons

If the property is immaculately presented, has smart technology and is within walking distance of a fantastic school, the property price will climb. This is the ideal situation, but it also works the other way. Which have found that over 60% of buyers have successfully negotiated  on the asking price after finding necessary repairs on their survey.

Personal Circumstance

If you are a first-time buyer with no chain, a cash buyer, or a seller ready to move, use this to progress your case. Use your personal circumstances in a positive way to optimise your negotiating position.

Budget

Make a list of costs, and set a clear budget of what you can realistically afford. Don’t put yourself in a position where you are struggling to proceed with your offer.

If you do have any other questions in relation to this subject, contact us at Coppenwall Estate Agents.

We always recommend a survey when purchasing a property, read up on the different types of survey here.

 

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