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Renegotiating the Purchase Price: A Guide for Property Buyers

When purchasing any property, the initial asking price is often just a starting point for negotiations. Understanding the art of negotiation can help you secure a property at a price that's right for you. Here's a guide to help you navigate the process:


1. Do Your Research

  • Market Analysis: Research recent property sales in the area to get a sense of current market prices. South East Surveyors can always help assist with this by providing an RICS Market Valuation of the property to give you complete assurance as to the property value in accordance with current market conditions (either before or after your offer has been accepted).

  • Local Factors: Consider factors like proximity to amenities, schools, transport links or any negative locational factors (such as close proximity to commercial premises that can affect enjoyability and mortgageability) that could impact the property's value.


    property market research

2. Understand the Seller's Motivation

  • Time Constraints: If the seller is under pressure to sell quickly, they may be more open to negotiation.

  • Financial Needs: If the seller is facing financial difficulties, they may be more willing to accept a lower offer.


    seller motivations

3. Making an Offer

  • Start Low: Begin negotiations with an offer slightly below your maximum budget. This gives you room to negotiate.

  • Justify Your Offer: Explain your reasons for offering the price you did, citing market research or property condition.

  • Be Flexible: Be prepared to discuss other terms of the sale, such as the completion date, to make your offer more attractive.


    making offer on a property

4. Get a Survey

  • Information: It is essential to have all the information you need before proceeding to exchange of contracts. You need a comprehensive, detailed and independent survey report which provides all the information required on any necessary repairs/maintenance required and, importantly, how urgent these are.

  • Property Condition: Assess the property's condition by instructing a survey on the property. Any defects or repairs needed can be used as leverage during negotiations. A South East Surveyor’s comprehensive and independent survey report coupled together with quotations from independent contractors provide incredibly strong and unbiased grounds for renegotiation.


    South East Surveyors

5. Negotiate Strategically

  • Assess: Carefully review your survey report and decide:

    • What works can you accept as being part of normal maintenance and fair normal ‘wear and tear’ of the property

    • What works you are not willing to accept as part of the agreed purchase price and that you wish to renegotiate on

  • Obtain quotations: It is essential to obtain priced quotations from relevant contractors for any works you wish to base the renegotiations on to help provide figures for the renegotiations

  • Be Patient: Negotiations can take time. Don't rush into accepting the first offer and make sure you have all the required information to hand before proceeding to exchange contracts.

  • Be Firm but Fair: Stick to your bottom line, but be open to compromise. Generally, we advise against allowing the vendor to remedy any issues highlighted in the survey themselves, as you will have no control over the quality and specification of works being carried out. The preferred option would generally be to renegotiate the purchase price, although there may be some minor works that may be acceptable for the vendor to remedy as part of the condition of sale.


renegotiating property purchase price

6. Don't Be Afraid to Walk Away

  • Know Your Limits: If negotiations don't go in your favour, be prepared to walk away. There are other properties on the market. It is essential the cost of rectifying any defects is within your budget and/or renegotiated in the agreed purchase price.


walking away from purchase

Remember: Negotiation is a skill that can be learned. By doing your research, understanding the seller's motivation, preparing your offer strategically, and making an informed decision following a survey, you can ensure you purchase the property at a price that is right for you. 

 

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