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pablopatito

To Haggle Or Not To Haggle

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If you value a house at a considerably lower price than the vendor, and want to put an offer in, is it better to give just one first and final offer, or put in an even lower offer so that the vendor can save face by haggling a bit. I've always done the former, but I'm not sure if I'm losing out.

For example, I want to buy a house with an asking price of 200k. I value it at £175k. Do I offer £175k, or do I offer £170k with the intention of upping my offer to £175k? Which strategy is more likely to close the deal. In the past I've always just been honest and said 'The value of the house to me is £175k, take it or leave it' and never got into any kind of discussion with the estate agent.

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If you value a house at a considerably lower price than the vendor, and want to put an offer in, is it better to give just one first and final offer, or put in an even lower offer so that the vendor can save face by haggling a bit. I've always done the former, but I'm not sure if I'm losing out.

For example, I want to buy a house with an asking price of 200k. I value it at £175k. Do I offer £175k, or do I offer £170k with the intention of upping my offer to £175k? Which strategy is more likely to close the deal. In the past I've always just been honest and said 'The value of the house to me is £175k, take it or leave it' and never got into any kind of discussion with the estate agent.

If you really are going to buy just now then amazement reigns from those that visit this site. The turndown has begun!

However, I think you would do much better to offer £160k and go up in £5k increments and when you reach the max, just say so as you give that offer. Even suggest its not really worth more to me at £5k below your max. If the seller wants a buyer they may have to put up with you in the current market. Depends a bit where you are etc

The psychology of offers is that A SELLER WILL ALWAYS LOOK FOR AN IMPROVED OFFER and they do not expect the first to be the last, so you start low.

Edited by plummet expert

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It's a good question. I would tend towards allowing some wiggle space. Start low and go up. But probably best not to waste your time going up in lots of tiny increments - plan your strategy and stick to it e.g. start 160 and increase by 5 no more than twice.

A low offer gets the seller psychologically thinking "maybe this is all we can get". ( useful if they NEED to sell). Putting in a later increased offer also keeps communication channels open for longer than just a low offer which gets rejected.

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Yes would agree with the above.

Start low and go up and never never seem to overly keen to the agent.

I always state that I have another property that I'm also interested in, this lets the agent know that your a real buyer and also that if you don't get this one then you have another property lined up.

I would also explain to the agent why your putting the offer forward at that price. That way the agent knows that you have put some thought into it and not just pluck a figure from thin air.

As I also say, you can always go up in price but it's very difficult to go down.

Best of luck.

Edited by Propertybuyersnetwork

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If you value a house at a considerably lower price than the vendor, and want to put an offer in, is it better to give just one first and final offer, or put in an even lower offer so that the vendor can save face by haggling a bit. I've always done the former, but I'm not sure if I'm losing out.

For example, I want to buy a house with an asking price of 200k. I value it at £175k. Do I offer £175k, or do I offer £170k with the intention of upping my offer to £175k? Which strategy is more likely to close the deal. In the past I've always just been honest and said 'The value of the house to me is £175k, take it or leave it' and never got into any kind of discussion with the estate agent.

You're asking advice from a bunch of people, most of whom have never made an offer on a house in their life.

To be fair the advice so far has been ok, but I'm waiting for :

"Offer 20K and no more, if they refuse, reduce it by 2K every day until they come begging for you to take it off their hands for 8K, and a go on their wife."

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"Offer 20K and no more, if they refuse, reduce it by 2K every day until they come begging for you to take it off their hands for 8K, and a go on their wife."

And then offer 5k

Will that do ;)

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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