With Zoopla reporting the highest number of new homes listed in a decade in February, the surge in available properties, alongside declining mortgage rates, means a favourable environment, particularly for first-time buyers.
With increased supply and improved affordability, first-time buyers have greater negotiating power.
To help you negotiate on the price of your property, Karl McArdle, Co-Founder of The Property Buying Company, has shared five tips for first-time buyers.
- Highlight your chain-free position to sellers
Sellers are looking to sell their property as efficiently as possible, and chain-free buyers can reduce delays as they don’t have an existing property to sell. Highlighting this position can help you to stand out as a more reliable purchaser than those who are waiting for their own property to be purchased.
2. Stick to your budget
Negotiating on the property price will mean back and forth with the seller, as they put in their counter-offers. To secure a price you are happy and comfortable with, it’s important to set a budget in advance to ensure that you do not go over it in the moment. You need to be willing to walk away from a deal so that you do not overextend yourself or offer too much in a bidding process.
3. Tell the seller if you are a cash buyer
Whilst making up only a small fraction of the market, if you are a first-time buyer who is looking to pay in cash, it’s important to make this known to the seller. Proof of funds shows that you are serious about the property purchase.
4. Research developments in the area for new builds
New builds can have an extra 20% added onto their value as they have not been lived in before. When this inevitably changes, this can mean resale value reduces, and you may find it difficult to sell without making a loss, particularly if the house was overpriced to start with.
Research the area to see if there are any other new properties under construction, as rival developers will be competing for sales. Developers want a quick sale, so they may be willing to accept a lower offer than the listed asking price. If your offer is turned down, it’s always worth negotiating on things like the cost of fitted appliances.
5. Get quotes following a home buyer’s survey
If a home buyer’s survey has flagged any defects in the property, we would recommend requesting quotes from relevant trades professionals. With this knowledge, if you are still interested in proceeding with the purchase, you should use these quotes to negotiate further money off the price of the property.
The Property Buying Company has shared how you can negotiate a lower property price.
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
