Jump to content
sampage

Negotiating a deal

Recommended Posts

Hi all,

I am in the process of buying my second residential property so I can rent out my existing home. 

I am offering on a property at the moment and I am getting near the maximum amount I’m willing to spend. I feel as through the seller is adamant with what they want to achieve. I am a chain free buyer with an agreement in principle in place.

my question is:

How do I negotiate well to keep the price as low as possible without getting carried away? 

Thank you to anyone that can share their experiences and offer advice. 

Share this post


Link to post
Share on other sites

Hi Sam

Do you know the reason for the vendor selling up? Moving for employment? Down/Up-sizing? Any nugget of information you can get from the seller might help with leveraging the negotiation to identify what they need. Price might be one thing, but there's probably another reason they've set that price point (e.g. do they need that amount to repay a mortgage, legal fees and moving expenses?)

Other options include finding comparables in the near vicinity of where you're buying/ This will come in handy, especially if the prices are lower than what the vendor is asking for to put things in perspective for them.

Also, if it's been on the market a while, you can always mention that you're ready to go with the purchase at X price and it may be costing them Y amount each month it's on the market - drop in the Brexit and with winter approaching which tends to be slower market-wise.

In any case, if you have an upper limit yourself, just make sure you stick with it and mention it's your full and final offer. They may end up waiting around for their desired price, but if you follow up each couple of weeks, they may realise you're their best option and agree to come down.

Share this post


Link to post
Share on other sites

Sometimes vendors have a price in mind that bears no resemblance to the actual value of the property and however you try to negotiate they won't budge. Decide what you want to pay & if they won't accept walk away. You can always leave your final offer on the table. If its a reasonable offer they may eventually come back to you - especially if their Estate Agent believes your offer is a good one.

 

Share this post


Link to post
Share on other sites

Thanks for all the advice Derek. The seller has multiple properties and I’m unsure on why they’re selling. The property has been on the market all year and has been vacant possession ever since (costing the vendor). Maybe they’ve got the price in mind to cover business costs (capital gains tax)? The property is already well priced so I cannot use other properties to help negotiate effectively. We have put in our best offer and still no budge. It has been left at 5k below what the vendor is willing to accept. I’m unsure on why someone would be willing to lose a sale after the length of time it’s been on the market for the sake of 5k. 

Share this post


Link to post
Share on other sites
3 hours ago, sam page said:

I’m unsure on why someone would be willing to lose a sale after the length of time it’s been on the market for the sake of 5k.

Because humans don't always act rationally. They absolutely KNOW it is worth £X, despite overwhelming evidence to the contrary.

 

Share this post


Link to post
Share on other sites

If there are no other offers or interested buyers than you, I would leave your offer there for a few days/1 week then tell the agent that you’ve found another property you like, you prefer this one but this is your maximum Budget so if vendor won’t accept by the end of the day, you’ll go ahead to offer on the other property. That gives a timeframe to force the vendor to work in instead of thinking your offer is a back up waiting there if he doesn’t get a better offer. If vendor doesn’t accept and you decide you want to pay more, you can always say you were out bidded on the other one.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×