Set out your wish list
It is so important to work out what you want in your new property and what you are happy to compromise with. Set out your essential and desirable list, you need to stick to these so you don’t end up buying a house you didn’t want in an area you didn’t want to live in, just because it was cheap.
Look at the listings
Make sure you are looking at the properties that have been in the market for a long time or who are in a hurry to move out. These are the properties where you are likely to get a good deal.
Do some work yourself
Buying a property that needs some work done to it will cost you less than a property which is ready to move into. Also doing the work yourself will add value to the property if and when you come to sell it. Adding an extension or moving the bathroom can make a big difference in value. It is recommended that you research the ceiling price of the area.
Go to the auction
More and more properties are being sold at auction, which means you are very likely to grab yourself a bargain. It is important to remember you will need all the money in place when you buy at auction and you will incur fees from the auctioneer.
Don’t get over-excited
When you go to look around the property, don’t show the agent how much you want the house – even if you want it so bad. Showing excitement makes it much harder to get a good deal.
Offer a cheeky offer – a lower but reasonable offer might just be accepted. £475,000 for a £500,000 this time last year might have been rejected but today might be a different situation. A lower/reasonable offer shows you are confident, which is key when negotiating – even if you are not confident you must not let the agents know.
Set a time limit
Make sure you put a deadline on your offer by suggesting you have other properties that you are interested in. The Agents won’t want to lose you to another property or agent. Setting a time limit will add pressure to the agent and vendor to accept your offer.
Be a bit demanding
Ask for extras to be included in the price – but remember to be realistic. If the vendor wants a quick sale and you have the cash ready then you will be able to get away with a little more than if you are applying for a big mortgage and the vendor has a lot more time to find other interested people.
Be silent – if needed
After you have put your offer in – don’t be scared to stay quiet for a while. If you wait and listen to what the agent’s reaction is to your offer. You could find this useful later on in the negotiations.
Get a survey done
Surveys are not the cheapest, but they could play a big part in the negotiations. Once a survey has been conducted on the property you will be in a better position to make an offer – based on the results. Once you know the estimated costs to get the property perfect you can factor these into your offer.