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How To Negotiate House Price

Let’s look at how to negotiate house price. Buying a house is a big deal. You dream about it for a long time. You might look on house listing sites and apps on your phone looking for the perfect place. The family sets hearts on things as you work out how much mortgage you can afford. Perhaps you even picture yourself living there, sitting in the cosy living room. If you have children you might even look at nearby schools and that commute to work. Maybe there is space for you to work from home or start your own business from the outhouse?

There is so much we put ourselves through when we are house hunting and when we settle on somewhere to perhaps buy, the stress levels can go even higher. How much should you offer? Do you go in with a cheeky offer and know you have wiggle room? Perhaps you go all in with the amount you can afford and leave it to fate? It’s worth remembering that negotiations are part of buying a house. The process is something that can stress us out, however there are some ways to approach this. 

living room

Know Your Budget

Firstly, you need to know your budget. What can you afford to pay. No lender is going to give you a mortgage if you cannot afford to repay it. You shouldn’t be pushing what you can afford to repay either, because with a missed mortgage payment you risk losing your home. You need to figure out the price you can afford, know how much deposit that will require and also organise you finances. When you know what you have to play with, you can start to look at houses.

You might straight away to think that moving is not for you because of the price of houses where you live. It could be that the house market isn’t looking as good as it could be so you won’t get a good deal for your property. If you’re a first time buyer you need to be sure that the property that gets you on the ladder is a decent one and has what you need. Figure out your budget, know your budget and be sure that you stick to your budget. You need to work out what your priorities are too; it could be a garden, or an extra bedroom, or a drive. You just need to figure out what is at the top of your wish list. 

Your monthly expenses and long-term costs of your home can be influenced by equity release mortgage interest rates, which is why you should not accept the first offer you get from a lender. 

Whether you’re buying a home or refinancing, negotiating your mortgage rate can save you thousands of dollars.With a healthy down payment, a strong credit score, and several competitive offers, you’ll be in the best position to negotiate

Know The Market

How to negotiate house price is all about knowing the market. What else can you get for the money you will pay for this house? What can you get for less? How much are similar houses selling for in the neighbourhood? How much did the house down the road sell for? Look at, understand and get to know the market in the area you are looking at buying in. When you have this information, in your head, written down on paper, as print outs from the internet, you’ll know the price you should be paying.

When you start going above that, you’re entering into an area where you are going to start spending more than the property is worth. You’re going to need to pay money on top of the price of the settle on for the property. Think about the stamp duty, the moving costs, maybe even decoration, new furnishings and building work. You need to be able to afford the mortgage repayments from month one, whilst also living in the house and turning it into what you want it to be.

Uncover Information

You need to turn detective when you are looking at buying a house. This can help you to have more knowledge in your back pocket when you figure out how to negotiate house price. What is the sellers position? Have they had an offer accepted on another house to move into? Have they been in this house for a long time and are likely to accept a lower offer? If they have recently bought it and done it up they will have a set target to achieve in order to recoup what they have spent and make a profit.

If it feels like they could do with a quick sale, you might consider a lower offer. You also need to consider other offers coming in. If it’s a decent house in a decent part of town, with good schools and roads nearby, it will appeal to a number of people. You don’t want to upset the apple cart and give someone else a hole to enter via. Don’t be afraid to ask questions. However also sell yourself as someone who wants the property and is willing to make an reputable offer.

how to negotiate house price

Moving house – tips to make and save money

Your Offers

When you have decided that you want to put an offer in, you need to start thinking about how to negotiate house price. Generally you’re looking at a maximum of three offers. You never know your first might get accepted. Most of the time you put in a low offer. This might not be low according to your budget, but compared to the listing price. Remember, the asking price might reflect the anticipation of receiving low offers to begin with. Remember, there might be others bidding, so you don’t want to go in too low and then find out someone else got an offer accepted lower than you were willing to go to. There is no set journey to success when bidding on a house though. 

If your first offer is rejected, the seller might come back with a counter offer. You could accept this if it is somewhere near what you were willing to pay. However you could go back with a specific number which might make the seller think this is the maximum your mortgage allows you to go to. Don’t use a round number for this, as an odd looking number will look more like it’s you pushing yourself to the limit. If this is rejected, you might consider a third offer, which is your final offer. Let them know this is your final offer. 

What Is Included?

Something else you could ask if what is included. This might help them to accept your bid. If the white goods are included that could benefit you and help the sellers not need to pay to move them. If the shed is included that could be ideal for both parties. What about the plant pots and swing set in the garden? Find out what is included and this could help you to get an offer accepted.

Be Prepared To Walk Away

At the end of the day, we aren’t al going to get the dream house at the bargain price. Some people will, the planets will align for them. However others won’, it’s the luck of the draw. You can have your heart set on a property but you also need to prepare yourself to walk away. If it gets into a bidding war that is out of your price range you simply cannot go over your budget. If you do you’ll find yourself in financial difficulty within a few months. 

The art of how to negotiate house price is a tricky one but one you need to understand if you are looking at buying a property. Have dreams and ambitions for sure, but also be prepared to look elsewhere should they not work out. When it’s all said and done, you need to be able to afford the property you are moving into, whilst loving living there!

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