When moving house, it’s crucial that you protect your personal finances.
You can make a lot of money by moving up the property ladder. However, you could also lose a lot of money if you don’t negotiate the right deal.
The best property entrepreneurs tell us they always make their money through buying at a low price. It’s the art of negotiating a lower value that results in large profits.
If you’ve got your eye on your next property, here’s how to negotiate the very best price.
Get a pre-approved mortgage
To negotiate the best deal, you need to put yourself in an easy position. The best bargaining tool you have is speed! Sellers hate waiting around to exchange contracts.
If you can offer a quick deal and swift completion, you can get away with a much lower offer. Start by getting all the paper-work in place before you make the offer. Get a pre-approved mortgage and – if possible – release yourself from a chain.
Offer the value, not the list price
It’s important to remember that list price and value are two very different things. Typically the sellers will set their list price quite a bit higher than the true value of the property.
It gives them a cushion when negotiating and a guard against inflation. Speak to Redmove estate agents and ask them to independently value the property. Use that number as the basis for your first offer, rather than the list price.
In the swollen and saturated housing market, things move fast. If you see the house you love, you’ve got to be prepared to make a quick offer. It’s not uncommon to view a house and submit a blind offer the very same day.
You’ll find yourself competing with others submitting their blind offers. Such is the state of the housing market right now! It’s a seller’s market, so you’ve got to play into their hands. Move fast and make quick deals.
Get a full structural survey
A structural survey will highlight any potential issues residing in the property. If the house is weakening, the survey will pick this up. It could be a failed damp-proof course or windows that no longer comply with regulations.
If the survey comes back with a few issues, you’re well within your rights to lower your offer in lieu of repairs.
Understand why the seller is moving
Everyone moves on for a reason. And most are looking for a quick sale. Maybe there is a divorce involved or they already have a new home ready to move into.
On the other hand, they might be looking for a longer closing period while they search for a new home. Use this information to formulate your strategy.
Be the buyer they’re looking for. Give them time and space, or offer them a quick deal. Whichever will ease them into accepting your ideal offer.
Moving house is never easy. You’re looking to negotiate a low offer with terms in your favour. Follow this advice and you’ll be moving into your new home in no time!
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