last updated July 25th, 2025
Buying a home is one of the most significant financial decisions you will make and getting the best price is crucial for long-term return. While negotiating may be difficult at first, understanding the property market and some background work can help you save thousands of pounds. This step by step list is a comprehensive guide on how to negotiate the best price for your dream home and complete on time.
To haggle over a price, you have to learn about bargaining! It's all about preparing yourself with solid reasons why you deserve a discount and then asking for it in the most polite way - explain your reasons, be flexible and open to negotiation but always ready for a refusal and prepared to walk away from the deal if the property is overpriced. Scroll down to become an expert haggler!
Before starting negotiations, work out whether you're in a buyer's or a seller's market. In a buyer's market, there's more supply than demand giving you more room to negotiate. In a seller's market high demand and low supply can make negotiations tougher. There are many houses for sale with no 'for sale' signs outside so check all the property sites to understand the market.
Use property websites like Rightmove, Zoopla and local estate agents to research house price history in the area. Compare similar properties to ensure you set a realistic price for what the home is worth. Always remember you are looking at asking prices in an advertisement and not the 'sold price'.
The property market often slows during winter and peaks in spring and summer. Timing your offer during quieter periods may give you more bargaining power. You can view a home earlier but if it is still on the market in January, you have the possibility of a price cut.
Having a mortgage agreement in principle (AIP) or being a cash buyer puts you in a stronger position. Sellers are more likely to accept a lower offer if they see you as a serious and reliable buyer.
Understanding the seller's circumstances is to the buyers advantage. Are they in a hurry to sell due to relocation, financial pressure or other reasons? Urgent sellers are often more willing to negotiate.
If the home requires significant repairs or renovations you may have grounds to negotiate a lower price. After your viewing and surveys using our checklist (House viewing checklist for buyers - What is a house buyers inspection?) get professional surveys (What are the different types of house buyers survey?) to highlight any issues and use these as evidence during negotiations.
Estate agents play a critical role in negotiations. Building a good relationship with them can provide a background into the seller's situation and the property's history.
Clearly communicate your budget and intentions. Estate agents are more likely to be positive towards you if they see you as trustworthy and genuine.
Inquire about the property's time on the market, previous offers and reasons for sale. This information can help you gauge the seller's flexibility.
it should be at least 5-15% below the asking price depending on condition of the house.While it's tempting to start with a very low offer this can backfire especially in competitive areas. Make an offer that reflects your research and the property's true value.
Support your offer with evidence such as comparable sales, the property's condition (Buy a home that needs renovation - a fixer-upper house) and market trends. This shows you've done your homework and aren't simply looking for a bargain.
Make an initial offer slightly below your maximum budget leaving room for compromise. Sellers often expect some back-and-forth before agreeing on a final price.
If you are a first-time buyer emphasise that you have no chain. This makes your offer more appealing compared to buyers who must sell their current home first or are in a long chain.
Offering to work with the seller's preferred timeline can make your offer more attractive potentially offsetting a lower price from another bidder.
Demonstrating that you're willing to walk away if your terms aren't met can strengthen your position. Sellers are more likely to compromise if they sense urgency on their end rather than yours.
If a survey reveals problems such as damp, subsidence or outdated wiring use these findings to renegotiate the price. Sellers often prefer to lower the price rather than address costly repairs themselves. How to Identify Structural Problems Before Buying a Home has further information.
Providing quotes from contractors for necessary work adds weight to your offer price. Sellers are more likely to agree to a discount if they see concrete figures.
Homes with poor energy efficiency ratings may require upgrades like insulation or double glazing. Use this to negotiate the price.
Request that appliances, curtains or furniture be included in the sale. These items can save you immediate costs and may make a slightly higher price more acceptable.
Ask the seller to contribute towards your legal fees or stamp duty. This can effectively reduce your overall costs without lowering the property's sale price.
If the seller agrees to fix certain issues before completion, this can save you money and time post-purchase. It can also save you time on urgent repairs such as broken gutters.
In a competitive market properties may attract multiple offers. Decide on your maximum budget beforehand to avoid overpaying in the heat of a bidding war.
Stay objective and stick to your financial limits. Letting emotions drive your decisions can lead to paying more than the property's worth. This keeps you competitive without exceeding your budget.
As mentioned earlier the property market tends to slow in winter. Sellers listing during these months may be more open to negotiation due to reduced demand.
In competitive markets, responding swiftly to counteroffers shows you're serious and can help secure the deal before other buyers step in.
While speed is important, don't let the fear of losing out force you into agreeing to unfavourable terms. Take time to assess each stage of the negotiation.
A good conveyancing solicitor can help identify any red flags in the contract and negotiate favourable terms on your behalf.
If you are not good at negotiating ask a family member or friend to help you.
Consulting with a mortgage advisor or financial planner ensures you're making informed decisions and staying within your budget.
Once an offer is accepted, ensure all agreed terms are documented. This prevents misunderstandings later in the process.
Instruct your solicitor to begin the conveyancing process immediately. Delays can lead to the seller reconsidering or accepting a higher offer from another buyer.
Maintain communication with the estate agent and seller throughout the process to address any issues promptly.
