If the lender accepts your application, they let you know how much they are willing to lend you. This offer is called a mortgage in principle. When you buy a house, estate agents and sellers take your offer more seriously if you have a mortgage in principle because it proves you could afford the property.
This helps your bargaining position when it comes to negotiating house price discounts, because the seller is more likely to accept your offer than one from someone without a mortgage in principle. You can compare mortgage deals now and apply for the best one before you put in an offer. Compare residential mortgages if you are buying a home to live in yourself. Compare buy to let mortgages if you are buying an investment property. If you need help choosing the right deal, a mortgage broker can help you decide and speed up the application process.
Ask the agent how many viewings the property has had and whether there have been any other offers. One of the key aspects of how to negotiate house price discounts is demand. If there has not been much interest, you can comfortably offer a lower bid when you start negotiating. Check when the property was first listed on the estate agents website, or property websites like Zoopla.
The longer that the owner has been waiting to sell could mean that they are more willing to lower their asking price. If the property has had lots of viewings but no offers, ask the estate agent about why and use this knowledge to your advantage.
You could even get a valuation of the property from a chartered surveyor or valuer. You have to pay for this service, but if they think the property is worth less than the price it is advertised at, you could use this when you haggle. Negotiating house price discounts is much easier if you know the property is worth less than the advertised price. Knowing the going rate for other properties in the same area is a must when you think about how to negotiate house price discounts on the price of a property you want to buy.
If you can argue that the asking price is above what similar properties sold for nearby you will have a strong case negotiating house price reductions. Check the asking price of other properties currently on the market and see what they offer in terms of space, features and presentation. Visit the Land Registry website to search your local area to find the average house price, or property sites such as Zoopla to find specific sale examples.
If you think the property is overpriced mention it to the estate agent — they may feed this back to the owners, who may decide to drop the price. This could save you the hassle of working out how to negotiate house price reductions. You can usually tell quite quickly if you like a property. The answer is: in writing, with as much detail and as little room for misinterpretation as possible. It's much easier to open negotiations this way, as there's won't be a 'he said, she said' situation if you or the seller have trouble coming to an agreement.
In a quiet market, it's more than likely that they estate agent will come back to you. And if not, keep your eye on what's happening with the house and continue to signal your interest if it stays on the market. There are some cases when you will want that particular house so much that it will seem worthwhile putting in an offer above the asking price.
Gorgeous period properties in good repair don't come along that often, and if your heart is really set on it, then you shouldn't pass up the opportunity of a lifetime if your finances offer some upward flexibility. Even so, be careful: any counter-offers should be made in descending order, so that the seller knows that there is a limit to how much you're prepared to spend and how long you're willing to negotiate.
In case you are submitting an offer via a sealed bid, again keep cool-headed. Avoid panicking about what others will offer and only put in what you can afford. If you offer a lot more than you budgeted for, your mortgage offer may become void, which will delay everything.
Getting the best mortgage rate on your new home should be seen as part of negotiating the best price. As we've explained above, getting a mortgage agreed with your lender in principle will also give you more leeway when haggling with the seller: if you are seen as more reliable and coming with fewer potential complications than other buyers, you are more valuable.
We have teamed up with online mortgage expert Habito who will not only help you get the best mortgage deal, but will also assist you with document preparation. Fill out the form below to see what you could afford, then speak to one of their experienced advisors for whole market, unbiased, free advice.
Anna is Consumer Editor across Future's home brands. She moved to the world of interiors from academic research in the field of English Literature and photography.
She is the author of London Writing of the s and has a passion for contemporary home decor and gardening. Deals Scroll through our fall vacuum cleaner sales edit for the best deals and discounts from your favorite vacuum brands. Real Homes is part of Future plc, an international media group and leading digital publisher. Visit our corporate site. All rights reserved. England and Wales company registration number For example, maybe the home has had some minor updates like new flooring, fresh paint, or the landscaping has been improved.
These updates are a good starting point. These arguments may encourage the seller to reconsider the price. Some people are willing to pay more than asking price if they are really in love with the home. At this point, the buyers are making an emotional decision rather than a financial one. The trick of getting those savings is to know what is reasonable to offer below asking price.
There will be instances where you could offer significantly less than asking price. Buyer Resources. Table of Contents.
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