Tips on negotiating the best price
Getting The Best Price
It is important to remember that property prices advertised on portals like Rightmove & Zoopla are the prices that estate agents and home sellers are aiming to sell for. There can often be a big difference in what a property is advertised at and what it actually sells for. This means that any differences are down to negotiation and the below tips will provide you with questions to ask and tactics to use:
- Use free online resources such as sold property sections on Rightmove and Zoopla and nethouseprices which will show you the sold prices and the original adverts to help you compare prices across similar areas and property types. These websites provide information on what properties were actually sold for and give you powerful knowledge.
- Ask the agent how many viewings the property has had and if it has previously been under offer and returned to the market. If it has had many viewings but no accepted offer then it is likely overprice and may provide you with an opportunity to offer a lower price. Make sure to find out why the property is taking time to sell.
- Always check or ask how long the property has been on the market. If the owners are struggling to sell it may mean they will accept a lower offer.
- Ask how many offers the property has had. If it hasn’t had any or a few under the offered price it may again provide you with an opportunity to negotiate a lower price.
- Ask questions about the condition of the property and ask to see any electrical and gas certificates or building works. Knowing what has an hasn’t been done will not only help you get a better price but will help you calculate how much to budget for any urgent works you may need to carry out.
- For leasehold properties always ask how many years are left on the lease. Leases with less that 80 years left can cause problems when applying for a mortgage as lenders will typically only lend on properties with leases in excess of 70 years.
- If the property you are purchasing is a flat or maisonette and has service charges tied to the lease you will need to check how much you are liable to contribute to general maintenance. Service charges collect funds for maintenance for shared areas, the external building, roof, pipes, drains and also buildings insurance.
- Ask the agent the reason why the current owners are selling. It may be that they are up sizing or downsizing, moving for work, debt or divorce however there is always the chance that they are moving due to problems with the area, neighbours or the property itself.
- Ask what is included in the sale. It may become a shock if you learn later that you will have not budgeted for white goods, light fittings and blinds.
- When viewing a property check for signs of subsidence. Do this by taking a close look at the walls to identify cracks wider than 3mm. Specifically check around door and window frames which can indicate weak spots. Spotting problems at the earliest stage may be reason for you to not to proceed however if you are happy to carry out certain works then you will be able to budget and form your offer accordingly.
- Check the parking facilities at the property. Does it have a garage or off road parking? If not it would pay to drive past the property at different times of day to see what street parking generally exists. If parking is restricted you may have to obtain a permit from the Local Authority and again will need to factor in the associated costs wehen offering a price.
- Check with the seller or estate agent if your purchase will result in you joining a chain. A chain of transactions is where the transaction is reliant on other linked sales and purchases and adds variables out of your control. At the very least knowing the answer will help you factor in any time delays and disappointment in case of the transaction taking more time or falling through.
- Check the council tax band for the property. This can easily be done online and will show you at the outset whether the fees will make life difficult for you.