When searching for a property one of the key considerations is, of course, price. Many people reject a property simply because it is out of their price range – even if only a little. They don’t consider the possibility of negotiating down to their budget.

In the right situation and under the right conditions, however, this is entirely possible. Here we look at some great ways to negotiate on house price.

First of all, you need to have the right person doing the negotiating. If you are shy or don’t feel you are strong enough to put forward your case for a lower price and stick to it, then ask your partner, a relative or even a friend you think would be better suited.

This is especially important with a property that has a several people interested. The agent will smell any weakness and use it to their client’s advantage. You may have to compromise slightly, but you don’t want to give in to the agent completely.

Now consider the areas you’re prepared to look for a property. City centres are likely to be over supplied and so prices are probably lower – and room for negotiation much bigger!

If you’re looking in Manchester, visit several different Manchester city centre estate agents and see how many properties of the type you want they have for sale. If all of them have a lot, it is a buyers market and the power is with you. If they only have a few each, consider a different area or type of property.

Any property you consider putting on offer in for that is over your budget should only be over by 5-10%. It is rare you will negotiate down by more than 10% and it is likely to be less. There are exceptional circumstances where this is possible – a really bad housing market or a property in serious need of updating for example – but you will more often than not end up disappointed when you cannot get a property price down to your level.

Start with an opening bid of 10-20% below the asking price, depending on the level of demand, and be prepared for it to be rejected. The best thing to do is deliver your offer in written form and in person to the estate agents. That way you will be able to tell by his reaction how close to the mark you are.

The agent will call the seller with your offer and if he or she appears to be reluctant to do so, you’ll know he is likely to advise them to reject your offer. If he calls straightaway, you’ll be very close to what they – and the agent – were looking for.

Should your opening offer be rejected, increase next offer only by a small amount – 1-2% – and see what kind of reaction that gets. You’ll get a much better idea of what the seller is willing to accept that way – and whether or not you should pull out now or keep going until you reach your price ceiling.

Another way to negotiate a reduction in a property price is, instead of bringing the price down, get the seller to add to the value of the property. Get them to give you an incentive to buy at or just below the asking price.

This could include fitting a new bathroom or kitchen to replace an old one, fit new carpets, leave appliances…a whole host of things. Remember, you don’t get if you don’t ask!

If a seller is determined not to budge on price, they may view offering you requested incentives as a more acceptable option.

Author Bio: Ian Grainger is writing on behalf of Shepherd Gilmour, Manchester city centre estate agents.

Category: Real Estate
Keywords: property prices, negotiating, estate agents, house buyers