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Buying Plan Step 3: Making an offer on a house
Plan ahead before making an offer on a house
The agent acts for the seller. If you ask for guidance on what to offer, they'll suggest a high figure. Rely on your own research.
Our Buying Plan offers you independent advice. How to make an offer. How negotiate on price better. How to target the lowest price.
What's the best way to make an offer on a house and negotiate the lowest price?
Develop your negotiating technique
Agents will ask questions which gives them the initiative. It's a sales technique you can equally well turn to your advantage.
Know house prices in your local market
Take time to gather information on both the market and the seller.
- Be confident you know the market, review all your research
- Understand the seller's viewpoint and circumstances
Don't miss out on a good buy. But don't overpay. Agents will always ask for more. Be sure you know values. Identify genuine sellers who are keen to find a buyer.
Know your seller's needs
It helps judge how tough you can be when negotiating on price. Also, look at the sellers' perspective, see box to the right.
Treat the asking price as no more than a guide
In areas where there are plenty of homes for sale, you're likely to find a buyers' market. You should be in a strong negotiating position.
In other areas property shortages could result in higher asking prices prices. But some sellers may be over confident, with asking prices too optimistic.
Your opening offer is an important part of negotiating
Rely on your market research and knowledge of the seller. When you make an offer on a house, strike a balance.
- Too low. You risk hardening seller's attitude to price
- Too high. You could overpay. Leave room to negotiate
Expect the agent to ask for an increase in your opening offer, maybe a lot. It's now that negotiating firmly will pay. More next page.
Step 4: Negotiating the price >>>
Thinking of making an offer on a house? Would you like more detailed advice?
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Negotiating power has shifted to home buyers
Buyers are now in a strong negotiating position
Mortgages are less easily available
The balance of power has shifted to buyers who have a mortgage agreed
Helping home buyers get a better deal
Negotiate with agents better.
Learn the tricks of the trade.
Aim for a maximum price reduction.
It's not the job of an agent to agree a "fair" price. They have a duty to the seller - to negotiate the highest price.
Planning what to say, helps negotiate with confidence
Agents will always try for the most money.
You have to negotiate to pay less.
Carry out your research early. Be sure of your facts.
Negotiate with conviction. Show you won't overpay.
Before making an offer to buy a house - tips
Plan your offer carefully.
Know what agents are likely to say. Be ready to respond, advice on site.
Advice for sellers - buyers can benefit from home sellers' guide
Find out more about finding a home ...by seeing the sellers' perspective.
Look at the comprehensive guidance available on this sellers' site.
The Advisory offers "expert information on how to sell your house."
