Property expert reveals how to haggle down the price of your dream home
SAVVY homebuyers are haggling down the price of their dream homes by more than £10,000 – and you can do it too.
Properties across the UK sell for £10,822 less, on average, than the original price asked by the seller.
That’s according to new figures by Hometrack, which revealed the UK regions where the biggest gaps between the asking and selling prices are.
Homes in Aberdeen sell for 8.3 per cent lower on average than the original asking price – a huge saving of £175,000 for homebuyers, according to the data.
In London, the average discount sellers must give buyers to achieve a sale has started to narrow for the time in two years. It now stands at 4.8 per cent – the equivalent of £494,800.
The smallest gap – 2.2 per cent – between asking and selling prices is in Manchester, where market conditions have remained strong for the last two years.
Richard Donnell, Insight Director at Hometrack, said: “After two years of falling sales volumes and rising discounts to achieve a sale there are some signs of life returning to the London housing market.
“Discounts are finally starting to narrow as sellers become more realistic over pricing.”
He added: “The positive news is that greater realism on the past of sellers will support transactions, which have fallen by 20 per cent since 2014.”
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a grim task but there are schemes out there to help first-time buyers own their own home.
Help to Buy ISA – It’s a tax-free savings account where for every £200 you save, the government will add an extra £50. But there’s a maximum limit of £3,000 which is paid to your solicitor when you move.
Help to Buy equity loan – The government will lend you up to 20 per cent of the home’s value – or 40 per cent in London – after you’ve put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime ISA – Another government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards your first home. You can save up to £4,000 a year and the government will add 25 per cent on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you’re restricted to specific ones.
“First dibs” in London – London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Starter Home Initiative – A government scheme that will see 200,000 new-build homes in England to be sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest .
Sam Mitchell, CEO, online estate agents, told the Sun: “Don’t be lead by the agent because remember they are working for the seller and want to get the best possible price for their client. But they will also know what is a realistic and fair price for the property.
“Check how long the property has been on the market. If it’s only just come on then the seller is less likely to drop their price. If it’s been on a few months, and potential buyers are drying up, then you might be able to haggle.”
Some buyers are already feeling a lot more confident at putting in a cheeky offer well below the asking price.
So what are the best haggling tactics if you want a good deal? We asked experts from for their advice:
Do your research
The UK is made up of a whole host of micro-markets and so while top-line national figures will give you a general idea on the state of the market, many buyers fail to look beyond these to the specific market they are buying in.
Russell Quirk, founder and CEO of eMoov, said: “Check out price growth, transaction levels and statistics on buyer interest.
“If all three have been stalling overm the past few months, you know you are in a stronger position as a buyer and there is a good chance you can submit an offer below asking price successfully.”
But bare in mind that if that market has been performing strongly, going in with a lower offer could see you lose out on your dream home to another buyer.
Start Low
The start of any negotiation will see a buyer submit an offer below asking price which they can then work upwards from with the aim of meeting in the middle with the seller – but remember to be respectful.
Mr Quirk said: “Going straight in with an offer way below asking price can be viewed as insulting by a seller and work against the buyer.”
Build a good relationship with the seller
The relationship between the seller and the buyer is important and should not be underestimated, according to Mr Quirk.
For example, if you find yourself in a a lengthy chain or your mortgage surveyor down values the property and you need some extra time to find additional funds, it might help to have the seller on your side.
Know your position
According Mr Quirk, if you’re a first time buyer with no onward chain, this can work to your advantage and often a seller will opt for a buyer in a stronger position to proceed at the expense of a few thousand pounds.
But if you only have a mortgage in principle, a long chain and are in no rush to move, you won’t have the same bargaining power
Be persistent
If you’re a first-time buyer, you shouldn’t be afraid to chase your seller’s agent yourself.
Ask for regular updates, what length of the chain is, if there are any issues and if there is anything they are waiting on from your end.
Stay organised
To avoid being gazumped, make sure you stay on top of the sale process and act quickly so secure your sale at the price agreed.
Mr Quirke said: “If the seller has reduced their price only for you to drag your heels, they may decide to go with another buyer.
“By having your surveys complete and your paperwork up to date, the sale can proceed as quickly as possible and you can complete on your dream home at a reduced price.”
Are you a first-time buyer that wants to share your story about how you managed to do it? You should get involved in our new My First Home series.
Last week we spoke with a mum-to-be about how she got on the property ladder in London in her 20 – although it took her four years to save for a deposit.
PROPERTY LADDER How to find the best mortgage if you’re a first-time buyer – and all you need is a 5 per cent deposit
We also revealed how a 26-year-old single woman sofa-surfed to save up for a deposit to buy £148,000 one bed flat in Cheltenham.
Fancy a project? You can snap these homes up for £50,000.
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