When selling your property, you will have an ideal asking price in mind, and achieving this price or above is going to be a top priority.
Some buyers are likely to offer below asking price to secure a bargain. While your agent will be on hand to advise on any offers you receive, the decision on whether or not to accept an offer is ultimately yours.
This is where negotiations come into play. Get the negotiation right and you could receive thousands of additional pounds for your property. Get it wrong and you could put off interested buyers, so you’ll need to strike the correct balance.
Recent research from Barclays Mortgages has revealed that some property buyers are finding it hard to negotiate. Below, we explore what this means for sellers and how you can use negotiation to your advantage to achieve the best possible price for your home.
Buyers fail to negotiate property purchases
Barclays surveyed 2,000 property buyers and found that 30% did not negotiate the price of their current property at all during the purchasing process.
Over a fifth (22%) of those who didn’t negotiate cited a lack of knowledge, while 17% said they feared losing the property and 10% were fatigued by the buying process.
Other reasons for failing to negotiate included finding it embarrassing (8%), finding it intimidating (8%) and not wanting to upset the property seller (7%).
Of those that failed to do so last time, 52% said they plan to negotiate when they purchase their next property, so they don’t miss out on crucial savings.
Barclays estimates a negotiation of 18% off the property price could save buyers – or lose sellers – around £40,000 based on the current UK average house price.
Good news for property sellers
With many buyers failing to negotiate when purchasing a home, sellers can use this to their advantage. If buyers aren’t negotiating, your chances of selling for asking price or above are enhanced subject to the asking price being there or around what the agent advised.
The study shows over half of buyers intend to negotiate the next time they purchase a property. Therefore, sellers should anticipate more experienced buyers driving a harder bargain and be prepared for it.
Keep in mind that the ability to negotiate usually depends on the current state of the property market. If it’s a buyers’ market, with high supply and low demand, purchasers will be in a better position to negotiate and are more likely to do so.
Meanwhile, in a sellers’ market, when demand is high and stock is low, the power rests in your hands, allowing you to encourage eager buyers to bid for your property.
Whether you find yourself in a buyers’ or sellers’ market, it’s crucial that you work closely with your agent to successfully negotiate offers. You also want to be mindful of the buyer’s financial circumstances and ability to move quickly. here having instructed a good agent can mean the difference in thousands of pounds. a good agent is worth their weight in gold as the saying goes.
Top tips for negotiating successfully
According to Barclays’ experts, those who wish to negotiate successfully should consider a range of steps. The first is to do your research and have a good idea of how much similar properties in the area have been selling for recently, as well as how long they have been on the market.
Secondly, sellers can improve their negotiation skills by understanding the mindset of the buyer. This can help to determine what sort of property they are looking for and get an idea of their maximum budget.
As a seller, you must also know your end goal and be realistic. While you may be tempted to negotiate every offer way above asking price, doing so could prolong your sale and jeopardise your chances of achieving your desired sale price.
Another key piece of advice is to consider what communication style is most suitable for you. It’s likely that your agent will handle most of the negotiation on your behalf, but once you are involved, do you and your buyer prefer contact face-to-face, by video call, email or via phone? At kings we always suggest that all negotiations are done with the buyer and ourselves experience tells us sellers accept offers lower than we could have sometimes achieved if we had directly negotiated the sale and often offers from buyers who have not been fully vetted financially and situation wise that could and do cause issues with the sales progression further on.
In any case, if you can utilise the experience of your agent to negotiate offers and market your property effectively, you’ll have a strong chance of achieving your asking price or above.
When selling, it pays to work with an experienced, reputable estate agent. Here at Kings Group, we can help you to get the most from the sale of your home. For more information on how we can assist you on your selling journey, click here.
We also offer a free and instant online valuation to give you an idea of how much your home could be worth on the current market.
