With a wide choice of homes on the market for buyers, many are able to negotiate down asking prices when purchasing a flat or house. Around one in 10 sellers are now accepting offers of more than 10 per cent below the asking price, data from property portal Zoopla suggests. Although this is less than the one in five that were doing so in 2023, when mortgage rates were at their peak, reaching an average high of 6.85 per cent for a two-year fix, and house prices were falling, it shows that negotiation is possible for those who want to seek a deal. “With the stock of homes at a seven-year high and lots of choice for buyers, sellers are having to remain realistic on pricing – both asking and whether to accept offers,” explains Richard Donnell, executive director at Houseful, which runs the Zoopla brand. (Photo: Betty Laura Zapata/Bloomberg/Getty)

Market runs on 'up to' offers

In years gone by, when the market has been red hot, with prices rising rapidly, some people have offered over the asking price for homes. But with prices now rising at a relatively slow rate – especially after a hike to stamp duty last month – the situation is not the same. “The market in England and Wales essentially runs on an offers ‘up to’ the asking price,” explains Mr Donnell, although the situation differs in Scotland, where homes are marketed with a survey report. So, for those searching for properties at the moment, what are the best tips to ensure you give your offer the best chance of being accepted? The i Paper spoke to experts to learn about the dos and do not’s of underbidding for a property. (Photo: Chris Ratcliffe/Bloomberg via Getty)

How to decide whether to under offer

Property experts stress that the value a home is listed for should not be seen as how much it is worth. “It is important not to see the asking prices as the home’s value. A home is worth what someone like you will pay for it,” says Jonathan Rolande, director at property buying company House Buy Fast. “Research is key. Look at comparable live listings,” he adds. Using property portals like Rightmove and Zoopla can be a way to compare and benchmark other properties, but remember, they are also generally showing asking prices. In terms of comparing what properties are being sold for, Emma Fildes, a property buying agent at Brickweaver, suggests you can use the Land Registry. It does have lag, though, so bear this in mind. For example, a property sold before April’s increase in stamp duty – a tax paid when purchasing a property – may have sold for a slightly different price than it would do now. (Photo: Oscar Wong/Moment RF)

How to frame your offer

When offering significantly below the asking price, an evidence-led approach is best, according to experts. “If you want to secure a deal at a realistic price, lead with facts not hearsay,” explains Ms Fildes. Similarly, Mr Rolande adds: “Be prepared to explain the reasons for the lower offer – try to take the agent and the owner on that journey so you don’t look as if you have just plucked a figure from thin air.” As well as using comparable listings, Rolande says this reasoning can include factors such as the time the property has been on the market, details of things like a high service charge or short lease if buying a leasehold property, and defects with the home that you think have not been factored into pricing. Experts also stress that your relationship with a seller and their estate agent is key. “Remember property is a people business – personal rapport goes a long way. If you are open and get on well with the selling agent, then human psychology means they will show your offer in a more positive light to their client,” explains Alex Goldstein, an independent property consultant. (Photo: Steve Parsons/PA)

The amount you offer isn’t everything…

Another element to buying a property is the position you are in as a buyer when you make your offer. If you are not in a long chain – a sequence of transactions which depend on others completing successfully – you might be in a less strong position to negotiate price down than someone who is a first-time buyer, and can move straight away. “In the current market, position is often worth more to vendors than the monetary amount,” explains Alex Goldstein. There are other things you can offer to increase your standing, too, though. “Offering time to a vendor to vacate can equally provide a strong negotiation tactic,” he adds. (Photo: Dragon Claws/Getty/iStockphoto)

What to avoid when making your offer

There are certain approaches to underbidding that experts say should be avoided. Fildes says being “vague” with your reasoning, and telling them your thoughts on how the “market has shifted” could go down like a “lead balloon” with sellers. Similarly, she suggests a gentle approach. “Remember, there are people receiving this information who’ve been told their property is worth a certain amount by the agent. Suddenly being told it’s ridiculously overpriced or have an offer significantly lower with no explanation could scupper any chances of a comeback if you want to improve slightly,” she says. Goldstein stresses that in certain positions, underbidding is also a tall ask. He says if you put an offer in for a property without having put your own home on the market if you own, you are unlikely to have much of a chance, full stop, even before it comes to a low offer. “This is a waste of your time and it will rarely be taken seriously,” he says. Rolande adds that you should consider whether you really want to dramatically underbid as well, if you are desperate to secure a particular property. “If the house isn’t worth the asking price, then don’t pay it. But if that leaves you heartbroken, well, it probably is worth it to you. Many people pay more than they want to buy a home, but for the right place, and it soon becomes irrelevant, so it’s important to listen to heart as well as head,” he says. (Photo: Dan Kitwood/Getty)