HOME BUYERS can haggle for tens of thousands of pounds worth of discounts off the asking price using a number of trusted bargaining tricks.
According to data from real estate website Zoopla, four out of 10 sellers lowered their home prices by more than 5% in June as the market shifted in favor of buyers.
Typical home prices currently stand at £286,532, according to the latest data from lender Halifax.
Therefore, a 5% discount is equivalent to £14,326.
Zoopla says 15 per cent of sellers have accepted a discount of more than 10 per cent, which works out to as little as £28,653.
Rising mortgage rates mean banks will often lend less money, making it harder to climb the property ladder.
So it’s all the more important in the current situation that buyers get discounts where they can own their dream home.
Zoopla says higher mortgage costs with an average rate of 6% will affect purchasing power by up to 20% – this means the price you can pay on a mortgage drops significantly as rates go up .
But the average discount guaranteed by home hunters now stands at just 3.8%.
Here, experts reveal how buyers can lower home prices…
Be prepared to move fast
If you want to offer a lower price for a home, you need to make it as attractive as possible to the seller.
No one wants a home sale to last months, so if you can assure the seller that you can move quickly, they are more likely to accept a lower price.
This means you’ll need to make sure you can get a mortgage with the money needed to make the offer you want to make.
Rhys Schofield, director of Peak Mortgages and Protection, said: “Be in a row.
“Talk to a broker who will have your agreement ready in principle, showing that you can get a mortgage.
“Have your ID and proof of deposit ready as real estate agents need to verify this and get your attorney ready.”
Flaunt your position
In a way, first-time buyers are in a stronger position than rival bidders because they are not participating in a chain.
Waiting for someone else to buy your home before you can trade can be a long game with many waiting times.
So when submitting your offer, be sure to emphasize that you don’t have a chain, which will make you more attractive to sellers.
Ranald Mitchell, director of Charwin Private Clients, said: “Real estate sellers are more likely to accept lower offers from buyers in the right location.
“First-time buyers do not have a chain of dependencies and should be in a strong position to negotiate good prices.
“Don’t be afraid to go into the game and bid less than the asking price – be confident.”
Check out the local market
When deciding what price to offer, do your due diligence on the local market.
See similar properties in the area and how much they sold for. This information is available on sites like Zoopla and Rightmove.
Stuart Collar-Brown, from real estate website My Auction, says: “A smart way to find good value is price per square foot – so you can take the asking price and divide it by the number of square feet.
“This will give you comparisons of similar homes in the area to argue your case.”
Know your seller
Learning as much as you can about the seller can give you some important clues as to what kind of deals they can entertain.
“Look how long the property has been on the market and if it has suffered a recent drop in value,” says Stuart.
“Trying to find out if the supplier is buying something else or has accepted an offer.
“This will help you determine how urgently they need to sell so they can proceed and allow you to figure out a fair asking price.
“It is also worth trying to determine if a supplier has turned down any offers.”
For example, if a seller or their loved one moves to full-time care, they are more likely to accept a lower rate because it will save them the stress and money needed for maintenance, according to Stuart.
You can even try to target motivated sellers who are likely to be more open to negotiating prices.
Don’t reveal your budget
Keep your maximum budget in mind, but keep it to yourself if possible.
“Think of it this way – if the seller knows you can afford to pay the higher amount, they’ll have less,” says professional landlord and property developer, Kundan Bhaduri at Kushman Group. incentive to lower prices.
“You gave them a bargaining chip.
“By maintaining the confidentiality of the budget, you will maintain an atmosphere of intrigue and flexibility in the negotiation process.”
You can also use flaws in the property to justify buying below asking price.
Kundan adds: “Defining the problem of the property will give you a real reason to offer a lower price.
“If there is an obvious problem or repairs are needed, it affects the overall value and desirability of the property.
“Therefore, by pointing these flaws out to sellers and their agents, you are essentially presenting them with valid reasons why the property should be valued below the original asking price. their heads.”
Negotiating a price isn’t the only way to get a discount – check out first-time buyer programs that can be up to 75% off.