When selling your property, achieving your asking price or above is highly likely to be a priority. Providing your property is marketed by a proactive local agent and the market is in good shape, you'll have a strong chance of achieving your desired sale price.
Once you start receiving offers, one important aspect of the process to consider is negotiation. Some buyers are likely to offer below asking price with the aim of bagging a bargain. Working alongside your agent, you can negotiate offers to make sure that you meet or exceed your desired price.
Get the negotiation right and you could receive thousands of additional pounds to put towards your next property or home improvements. Get it wrong and you could scare away interested parties, so you'll need to strike the right tone and get the balance right.
Recent research from Barclays Mortgages has revealed that some property buyers are finding it hard to negotiate - what does this mean for sellers and how can you use negotiation to your advantage?
Buyers failing to negotiate property purchases
The survey of 2,000 property buyers, carried out by Barclays Mortgages, found that 30% did not negotiate the price of their current property at all during the purchasing process.
Over a fifth of those who didn't negotiate said it was because they had a lack of knowledge, while 17% said they feared losing the property and 10% were fatigued by the buying process and just wanted it to be over.
Other reasons for failing to negotiate included finding it embarrassing, finding it intimidating and not wanting to upset the property seller.
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 savings.
According to estimates by Barclays, 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.
What does this mean for property sellers?
With many buyers failing to negotiate when purchasing a property, this puts sellers in a strong position. If buyers aren't negotiating, your chances of selling for asking price are enhanced, while you may also have more opportunity to negotiate offers above asking price.
According to the study, over half of buyers intend to negotiate the next time they buy a property, so sellers should be prepared for more experienced buyers to drive a harder bargain.
The ability to negotiate often depends on the current state of the property market. If it is 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.
Conversely, in a sellers' market, when demand is high and stock is lower, the power is more likely to be in your hands and you can encourage eager buyers to enter into a bidding war for your property.
Whatever market you find yourself selling in, it's important that you work with your agent to successfully negotiate offers without compromising interest in your property.
It's also important to remember that while the price being offered will be your main consideration, there are other aspects to think about such as the buyer's financial circumstances and ability to move quickly.
Top tips for negotiating revealed
According to Barclays' experts, there are a range of steps home movers - whether buying or selling - can take to negotiate offers successfully. 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.
Secondly, sellers can improve their negotiating chances by getting inside the mind of the buyer to understand why they want to move, what sort of property they are looking for and an idea of their maximum budget.
Another key piece of advice is to know your end goal and be realistic. As a seller, it could be tempting to try and negotiate every offer way above asking price. By doing this, you could prolong your sale and jeopardise your chances of achieving asking price as buyers will be put off by a home which has been on the market for a long time or had its asking price reduced.
When negotiating, you'll also need to think about what communication style suits you best. It's likely that your agent will handle most of the negotiation on your behalf, but as and when you are involved, do you and your buyer favour face-to-face contact, a video call, email or another form of communication?
For property sellers, the most important advice of all is to utilise the experience of your estate agent when negotiating offers. Unlike buyers, you have an agent on your side who you are paying to achieve the best outcome.
Proactive agents with sound local knowledge can help you to negotiate offers successfully, providing you with the advice you need to identify the best purchaser and offer for your circumstances.
By working with a local agency which excels in negotiation, your chances of selling quickly and for asking price or above are vastly improved.
If you require any further information about negotiating offers or any part of the selling process, you can get in touch with our expert team today
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