Updated: Oct 19, 2021
Buying your dream home is probably one of the most expensive purchases you will ever make. So here are some tips from us to help you negotiate.
Preparation is key.
In order to gain an understanding of the market place, research the area to see what other similar properties have sold for and ask the selling agent to justify the asking price.
Gather your financial documentation together, as any offer before it is accepted will need to be proven. Be it, proof of cash funds or a mortgage in principle from your mortgage advisor. This is in order for your estate agent to present your offer confidently to the home owners.
Estate agents also need to carry out due diligence checks to prove that you are who you say you are. So make sure you have your passport or driving licence to hand.
Once you know where you stand financially and what the surrounding property market is like, you can consider your bidding strategy. There are two options:
1) First and final offer only.
2) Negotiate. Offer less and move up in increments. This is a drawn-out process but it is a good way of ensuring that you reach the best price. As the common proverb says ‘Good things come to those who wait’.
An agent has a legal requirement to put forward all offers.
If your first offer is accepted, congratulations!
But if it’s a no, and it is your final offer then it becomes a waiting game, if not then you enter negotiations. Before making a second offer, it is worth finding out about any other offers that may have been put forward, and if they are higher than your current bid, this will help you figure out how much to increase your offer by.
If you are reaching your bidding limit, you need to decide if this home is worth it. Don’t forget to take all your costs into consideration, stamp duty alone is a fair chunk.
Hopefully, at the end of the negotiation, you will have an offer accepted at a price that suits both parties.
Having your offer accepted is a great moment but you must remember the deal is not legally binding until contracts have been exchanged. To avoid other parties ‘gazumping’ you, (the owner accepting a higher price), ask the sellers to stop marketing the property.
To speed the process to exchange and your move into your dream home it is important to stay in regular contact with the selling agent and to appoint a good solicitor.
Contact Zoe to have a chat about our services and why Wardsmith in Cambridge & Bishop's Stortford are different 01223 902300 / 01279 510300