Key takeaways
Negotiating house price is normal and expected - most sellers anticipate buyers will negotiate
Start with offers 5-10% below asking price but adjust based on market conditions and property factors
Cash buyers and chain-free buyers have the strongest negotiating position with sellers
Do your research on comparable sales and understand the seller's situation before making offers
Get any agreed price in writing and inform your mortgage lender immediately of changes
Knowing how to effectively negotiate on a property could save you thousands, yet many buyers don’t do it simply because they don’t understand how to negotiate effectively.
The good news is that negotiating a price on a house can be easier than you think – especially if you have the knowledge of the seller’s situation and the local property market.
We’re going to break down everything you need to know about negotiating house price here.
Negotiating house price is simply the process of agreeing on a final purchase price. It’s a normal practice so it’s important to remember that there is no need to be afraid of negotiating. Buying a house will be one of, if not, the biggest purchase you’ll make in your life, so it’s fair to try and get the best deal possible.
Plus, most sellers will expect you to negotiate, so it won’t be a surprise to them. While it can be a little intimidating, knowing that sellers expect it and understanding how to negotiate will help you prepare.
The process works through the seller’s estate agent, who passes your offers to the seller and brings counteroffers back to you until you reach an agreement, or one of you walks away. Estate agents must pass on all offers by law no matter the number.
Remember, asking price and selling price are different. Sellers often set their asking prices slightly higher than they’re willing to accept, expecting buyers to negotiate down. This gap between asking and expected selling price is where your negotiation happens.