24 Mar HOW TO HAGGLE YOUR WAY TO A HOUSE PURCHASE
A PROPERTY expert has offered his advice on how to haggle your way to a successful property purchase.
Jonathan Rolande, director of the National Association of Property Buyers, says following a few simple steps can boost your chances of landing a dream home and help you save thousands of pounds.
His advice comes amid recent drops in house prices, which official statistics showed were down by 0.5% in December and 1.1% in January.
Here, Jonathan, addresses seven of the questions buyers ask him most when entering the property market.
As a buyer is it wise to put in a very low offer first?
“It’s a fine line. Offering low psychologically primes a seller to reduce their expectations. However, offer too low and you’ll annoy them and lose credibility. Remember that what you offer should be based not on the asking price but what you have assessed the true value to be, then offer below that.”
Should I reveal my budget or downplay it?
“Never ever, ever reveal the maximum you are willing to pay to the seller or agent! Agents love a buyer who says “I’ll offer £90,000 but will go to £100,000 if I have to.” They work for the seller and legally must report all offers so be careful what you say.”
‘Should I mention faults with the property when putting in an offer?’
“Yes, in a general way. Don’t go round nit-picking, after all this is likely to be someone’s much-loved home. I speak in general terms when making an offer such as “I’m offering £XYZ because this takes into account the work I’ll have to do to upgrade the heating or wiring to a modern standard.” If the property is occupied I would never criticise the décor, kitchen or bathroom choice – stick to the safety and structural issues only.”
Should I always trust what the estate agent is telling me re. how many other offers they’ve received or how much the owners are likely to accept?’
“Contrary to popular belief, most estate agents are decent and honest and are trying to get two opposing sides to reach an agreement. However, never forget who they work for – the seller. And don’t forget how they are paid – when the property sells. And the higher the price, the larger their fee…”
How do I know if I’m seen as an attractive buyer?
“Cash is king of course but mortgaged buyers with no chain come a close second. Agents and sellers don’t like long chains, things can go wrong and are more difficult to fix. If the seller lives in the property, many – surprisingly – choose a buyer that they like. Yes it’s sentimental but people like to think of their home going to someone who’ll appreciate it. They also want somebody nice for the sake of their neighbours who they may be friendly with.”
What items should I ask to be included in the sale?
“It varies but fitted carpets should usually be included. Curtains are useful – even if you don’t like them they are very useful from day one and can be changed later. If the seller is moving from a house to a flat or emigrating etc ask if they’ll leave garden furniture and tools – they’re expensive to buy new. Fitted ovens, dishwashers and washing machines are useful to have too.”
Any other haggling tips?
“Do your research and explain the reason for the offer to the estate agent, if they are on board with the reasons, they will put it forward in a more positive way. Confirm the offer by email so there’s no doubt about it and you look more serious. Show proof of funds (cash in a savings account or a mortgage agreement). Tell the seller why you want to buy the house – there’s a good school for the kids nearby, you’ve always dreamt of living in the area, your mum is around the corner – get them to ‘buy in’ to your motivation. If they have found somewhere to buy, ask the agent if they could negotiate more off that one which would allow them to take less on their own.”
