In order to successfully negotiate your house purchase, you will have to reach an agreement that will satisfy both the seller and you. Some practical advice on how to reach the agreement with minimum friction and how would it be best working round on common sticking points will help you in house price negotiation.
Knowing yourself and your limits
You have to be honest with yourself through the maximum price that are prepared to pay. This could vary by property. When you are willing to pay more for one of the two similar properties telling you something about how happy you will be in that home. If so, an additional 10 or 20 thousand pound will be feeling like money well spent 5 to 10 years from now. Keep in mind that all the costs associated such as survey costs, conveyancing fees, Stamp Duty, mortgage arrangement and some more.
Understanding the agenda of the seller
In complex trade talks or the peace negotiations, professional negotiators are putting emphasis to grasp what the other parties would really want. However, in a residential negotiation, you will only have to answer two simple questions. First, what is the position of the seller? You should look for clues about how negotiable the price asking is. In theory sales with an element distress like business failure or divorce, may weaken the position of the seller and strengthen your own. In practice, individuals who are distressed could surprise you with their intransigence. Such cases are unpredictable and rare and more usually relevant inquiry is if the seller has found somewhere to purchase. This could influence the commitment to a sale timely.
Second simple question is what the seller would accept. You may ask outright but you should not be surprised when you are stonewalled by the response bluntly of the asking price. Search agents professionals are often getting a more candid reply. If you are not able to get a helpful response, you have to use your initial bid in getting proper feedback.
Bidding smart, not hard
To make a formal offer will qualify you as a serious buyer. The agent of the seller must reciprocate as you indicate what can be an acceptable offer. But if you will open too low, they will doubt your credentials rightly as a serious buyer. You will then need an improved bid substantially in order to regain credibility. The seller may treat this as your first bid and will be expecting a higher offer still. Therefore, lowball bids could deliver some results, but they may have risks attached.
An approach with lower risk is to make your opening bid to be conservative yet reasonable. If they accept, it would be great if not you may expect a sensible feedback. Then you could frame a second offer which will be harder for a serious seller to decline. There will be no one right or wrong way in negotiating, but it is preferable to quickly agree the sales whenever possible.