5 Tips On How To Negotiate As A First Time Buyer
Having worked in numerous estate agencies as an adviser we have also seen how the negotiations go on the other side. Usually the estate agent’s best interest is with the sellers, although do note the good agents will understand your value as a first time buyer. So I wanted to share some tips on how to position yourself as a first time buyer and how to use your professional team around you.
1. First of all do your research! There is so much information available nowadays when buying a home. Rightmove, Zoopla,local agents, local brokers, friends, family. Get as much information as you can. Make sure you look at sold prices in the area and not for sale prices. This is the true gauge of a property’s value. Question the agent on other properties in the area and why they have sold. On this note, we recently saved a client £20,000 on this exact premise. They had an offer agreed on a purchase at a certain amount, after a little bit of our own research we were able to assist our client to renegotiate a cheaper agreed price due to other properties in the area being sold and also leveraged on the position of them being a first time buyer.
2. Find out as much information about the situation of all involved up the chain. This can be used as a great negotiation tool. The information to find out is why are they moving? Have they found anywhere yet? What is the financial gap they need to make for their onward purchase? What timescales are they trying to adhere too? How many people in the chain? Once you know this information you will know how valuable you are in the transaction, which you can then use to your advantage. E.g. If there are 4 people in the chain above and you are picking making it a complete chain at the bottom, this put’s you in an extremely strong negotiation position. You then become very valuable to a lot of people in this transaction, so use it to your advantage.
3. Show positivity and desire in the property you are buying. A lot of buyers think it is a good thing to be negative to try and get a better price. If you are negative about the property, the agent will not take you seriously and will not push your position to their vendor. On the other hand, if you show how much you love the property, the agent will do their utmost to help you as they believe there is less risk of you pulling out.
4. Use an independent broker to guide you on your financial position and try not to give too much to the agent about your overall financial position until a price is agreed. If the agent believes they can increase your budget, they will do. The estate agent will always want to check that the mortgage is sorted, and the purchase can progress. Your broker can confirm this without giving full detail about your financial position.
5. Try to remove any emotion from the negotiation and be prepared to walk away. You need to remember you are negotiating against professional estate agents that have no emotion attached to the property they are selling. The agent is getting paid a considerable sum to do this for their client, yet you have no one representing for you on the buying side. As soon as emotion is brought into the negotiation, you will usually end up paying more than you should have for the property. There will always be other properties that become available that you will be interested in, what you require will also change over time. What you desire today could be extremely different to what you desire in 6 months’ time so do not get hung up on a property that you desire today.
After assisting numerous first time buyers over the years, it is key they get the best help to the start of their property journey. It is very easy to be taken advantage of without knowing as well, so be vigilant when buying your first home. If you need advice do not hesitate to contact us at Mesa.
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