Negotiating on a Property Purchase...

Negotiate an offer on a property purchase?

When asked for guidance when making an offer to buy a property, we offer the following guidance which we hope may help.

If possible, try to obtain comparables of any similar property spec, build type, bedrooms and plot size in the same approx. location that has sold. (or even a property comparable of a lower value that is unsold).

You can search on RightMove for the results to include properties that are on the market but have already had an agreed sale and the sale is being processed – ie it is sold subject to contract of exchange. (when filtering for the search results click on the checkbox to include SSTC)

This however wont tell you the actual agreed sale price that has been negotiated but only the original marketing price before a sale was agreed. Nevertheless it’s a good gauge to start with.

A really good tool is the ‘sold prices’ tab on Rightmove. This links into the land registry for actual completed sales so you can view the actual sale price of recent completed sales on comparable properties.

If you are going to make an offer below the marketed price, no agent or vendor can ever be offended if you support this with justifications of why. It may even open the eyes up to a vendor/seller, that could have been miss lead with an inflated valuation by their agent as the agent tried to win the contract over another agent to market the home.

If you place an offer that is £15,000 under the advertised price but explain this is because the house on the next street which is very similar but had a recent upgraded kitchen and rear extension to increase the dining area space and sold for £10,000 less than their advertised price – this would give you greater grounds and justification to show a sensible reason for the decreased offer amount and make it more difficult for the agent or vendor to try and respond with a counter offer or renegotiation. If they didn’t want to accept the offer then maybe parking for the time being, as the vendor may be dilutional about their properties true value.

Local school catchment may or may not be important to your preferences, but it can have a positive or detrimental effect on the price and demand.

Things such as a conservatory doesn’t necessarily increase the ‘value’ above the same house next door without a conservatory from a surveyor’s point of view, but it can increase the ‘sale-ability’. By this we mean it may be more appealing to someone with preferences perhaps wanting a little more floor space, (even if it can’t be occupied all year because its either too hot or too cold?)... but it may not necessarily increase a chartered surveyors opinion on its value.

Off road parking, a garage, ability to extend, convert etc is always worth a consideration for potential future improvements that could increase the value of your purchase.

It is always prudent of course to ensure you have already researched your affordability and ability to borrow with a lender or broker before you start your search for a new home or investment purchase.

Adviser's at Right-Advice are here and on hand should you require any further guidance or support on this matter.

Happy house hunting!