Excellent Advice For Buyers Of A New House

[TheEmperorHasNoClothes]

This seems like excellent advice. It is for those looking to haggle on the purchase of a new house. I may use it one day. Not in the near future though

From

http://boards.thisismoney.co.uk/tim/thread...7&message=83989

You really need to be hard-nosed and resist the charms of the

salesperson. They haggle every day of their working lives so they should be good at it and confident with it.

Play them at their own game. Put obstacles in their way as their end-game is to close the deal there and then. Never forget you have the upper hand (usually). You can walk away and when you do, the desired effect is usually a carrot being dangled. However, don't accept the tiddler they offer you at first, hold out for the prize winner! Also, take time to think about it .... leave them hanging as you can always find something elsewhere and competition is healthy so far as you are concerned. Don't be put off by high-pressure follow up calls claiming that you may lose out if you don't decide within "x" hours / days.

If you can, as suggested, leave purchases til the end of the month as targets have to be met and commissions earned. You may even negotiate the sales person's commission away if he/she is under pressure to meet targets set by the company!(Some commission is better than none at all and sales people are usually on a very low basic).

Finally ... Don't be intimidated. Keep your cool. Be prepared to be a complete b*stard if you need to. They aren't your friend. Think of them as your worst enemy!

Nothing more rewarding than knowing you've got a good deal and that you've played the game - and won! Good luck!

1. Be prepared - Do your homework and research thoroughly.

It's sometimes quite easy to know more about your subject than the salesperson! (In the case of cars and electrical goods especially - I agree property can be somewhat more serious - but the principle is the same)

2. Don't be pressured - A couple going together are easy prey. Unavoidable but you increase the chance of being manipulated. You've got your partner as well as the sales person trying to get you round to their way of thinking. The weakest one will be exploited. It's the emotional blackmail card. Think of Good Cop, Bad Cop where you're being made to feel guilty about being stingy over denying your partner their dream in front of a stranger..... STOP right there! It's a tactic. You're being got at! Your partner is actually adding to the pressure and, whilst you can say NO to a stranger, it's not so easy to say it to your partner! Go back on your own another time.

3. Don't make your decision there and then. From your research, gather your facts. You will never be able to digest all the info at that time. Take it home. Discuss it. Sleep on it. It's also very important to rate/score the alternatives. What really is the best for YOU? Make a note of what you have been asked to pay and what you would LIKE to pay. Negotiation starts at two extreme points. You'll want to gauge it so that these points come together somewhere in the middle - in your favour of course. Don't just think £money£, but also upgrades / extras. If you stick on price, push for added-value items to be thrown-in. Luxury bathroom suite, landscaping, a years maintenance fees (if shared amenities). If a new development, what about the show house? Get the furniture and soft-furnishings thrown in at a knock-down price. Labour the point that the carpets are part-worn and the kitchen cupboard doors are already showing wear and tear. Think of all the potential areas that you could negotiate a concession. Don't take no for an answer. If you don't ask - you don't get!

4. Try to put yourself in the sales person's place. Role reversal. Think of every trick in the book to get the customer to sign on the dotted line. Now get back into customer mode. Think about the tactics you considered when you were in their shoes. Don't let their personality or influence cloud your judgement. They are there to confuse you in the hope that you've had enough and you just want to sign the godamned form and go home! Don't give in so easily!

5. Diplomatically but firmly point out the DOWN sides to the property for you. Make the seller aware that his/her property isn't that brilliant and you have spotted the flaws.

Don't labour the point. A few well observed "faults" will show that you're on the ball! Take experts with you but don't allow them to enter into negotiations. It'll be counter-productive.

6. Be firm but fair. Don't be imtimidated. Don't be afraid to walk away. Rememember what your budget is. Don't go beyond it. Keep your feet on the ground. Remember that you will be paying for your decision for many years to come. Talk to others about their experiences. Learn from them!

Think of being in that TV show - Faking It. Could you pass yourself off as the experienced house buyer? Think positive!

Edited October 23, 2005 by TheEmperorHasNoClothes

[Without_a_Paddle]

This seems like excellent advice. It is for those looking to haggle on the purchase of a new house. I may use it one day. Not in the near future though

From

http://boards.thisismoney.co.uk/tim/thread...7&message=83989

House buying is not that straightforward. It's not like haggling to buy a car. What if you REALLY like the house, the area, the surroundings etc.

My advice is to get FRIENDLY with the EAs. This is what I did, and I got to see the best properties ahead of others.

The really nice young girl at the EA pointed me towards a young couple splitting up who were DESPERATE to sell in 1995 and deep in NE. The house was perfect for me. They had just signed up that morning with the EA.

I walked out of work at 9:30am to view the house and they snapped up my low offer.

All it cost me 'extra' was I made lots of subtle compliments to this young EA during the time she helped me view property (and I bought her some flowers afterwards...)

Sometimes it pays to be wily, not hard nosed.

[Elizabeth]

All it cost me 'extra' was I made lots of subtle compliments to this young EA during the time she helped me view property (and I bought her some flowers afterwards...)

Sometimes it pays to be wily, not hard nosed.

theres a gender issue here. Men are harder to seduce with compliments than women. They might like it but it doesn't put make them so pliable about the money... unless of course its the full monty... don't really fancy the type of men who are attracted to that profession. And if I were to find a friendly woman EA I would have to suss out her sexual preferences first!

[TheEmperorHasNoClothes]

House buying is not that straightforward. It's not like haggling to buy a car. What if you REALLY like the house, the area, the surroundings etc.

My advice is to get FRIENDLY with the EAs. This is what I did, and I got to see the best properties ahead of others.

The really nice young girl at the EA pointed me towards a young couple splitting up who were DESPERATE to sell in 1995 and deep in NE. The house was perfect for me. They had just signed up that morning with the EA.

I walked out of work at 9:30am to view the house and they snapped up my low offer.

All it cost me 'extra' was I made lots of subtle compliments to this young EA during the time she helped me view property (and I bought her some flowers afterwards...)

Sometimes it pays to be wily, not hard nosed.

Yes this advice is just for new developments. With the new developments you are dealing with salesmen and saleswomen. There is always another development to go and see.

For a second-hand house, the kind that I am likely to buy, I agree other tactics could work better. After all there is another human being involved in the deal - the person who is selling the house. (OK Possibly the EA is human too ).

[eurows]

My advice is to get FRIENDLY with the EAs. This is what I did, and I got to see the best properties ahead of others.

Sounds to me like you fell in their trap. "I'll tell you what, I like you, I've got this lovely property I will show you before I show the others'

[Nelly]

A mate of mine bought a house just cos he fancied the ea, he thought he was gonna get a bit. What he actually got was a house that needed 20 grand spending on it and nowt off the bird

[Marina]

House buying is not that straightforward. It's not like haggling to buy a car. What if you REALLY like the house, the area, the surroundings etc.

My advice is to get FRIENDLY with the EAs. This is what I did, and I got to see the best properties ahead of others.

The really nice young girl at the EA pointed me towards a young couple splitting up who were DESPERATE to sell in 1995 and deep in NE. The house was perfect for me. They had just signed up that morning with the EA.

I walked out of work at 9:30am to view the house and they snapped up my low offer.

All it cost me 'extra' was I made lots of subtle compliments to this young EA during the time she helped me view property (and I bought her some flowers afterwards...)

Sometimes it pays to be wily, not hard nosed.

You are a salesman's dream.

If your first offer is not rejected out of hand it is way too high. This does depend on the market of course - in 1995 you could get away with anything.

You can imagine the EA 'what a plonker - he could have got it for 10k less AND he bought me flowers'. No wonder so many EAs these days employ girls.

[The Masked Tulip]

This is why it is important to buy a house at a time when no one else wants to buy houses.

[Badger]

A mate of mine bought a house just cos he fancied the ea, he thought he was gonna get a bit. What he actually got was a house that needed 20 grand spending on it and nowt off the bird

Did he misunderstand when she said he could 'Tart up the back door' ?

[Without_a_Paddle]

You are a salesman's dream.

If your first offer is not rejected out of hand it is way too high. This does depend on the market of course - in 1995 you could get away with anything.

You can imagine the EA 'what a plonker - he could have got it for 10k less AND he bought me flowers'. No wonder so many EAs these days employ girls.

I expected this kind of reply.

If your first offer is not rejected out of hand it is way too high. This does depend on the market of course - in 1995 you could get away with anything.

Actually Marina, in 1995 a 'good' property often sold within days where I live.

I think you need a little more experience in the art of house buying, Marina.

The art is in buying a good quality house in the right area. Houses like that sell quickly (well, they did in 1995!) so you have to be there first. Hence my advice above. Worrying about a few % discount on a top property is a losers game. You will get the hidden value of such a property when the time comes to sell because it will sell quicker and easier than an average property in an average area.

Houses on my street are still selling today quite quickly BTW. (100 properties in my street, and 3 sold boards. None of the remaining 97 are for sale)

I can only assume you are used to buying in rundown areas Marina.

In 1995 where I live a £10k drop in price would put me in 2 bed terrace territory BTW!

I got a 3 bed semi +garage with new fully fitted kitchen, new windows, new bathroom, decent quality central heating and fully decorated for £50k.

A colleague at work bought a few months later and paid £43k for a crappy 2 bed terrace with no garage a few streets away.

A mere £7k less than I paid.

Like I said, get friendly with the EA and you get to see the best stuff in the best areas ahead of the pack.

It's not rocket science...

The alternative is to be a hard nosed pain in the @rse who puts in daft offers all the time. This is fine if you are bidding for scraps because the EA will contact you LAST...

Edited October 24, 2005 by Without_a_Paddle

[Without_a_Paddle]

Sounds to me like you fell in their trap. "I'll tell you what, I like you, I've got this lovely property I will show you before I show the others'

Sounds to me like you're a touch bitter.

I'm offering good advice here. Advice that got me a good property at below market value.

Ask yourself this:

"Do I want to be phoned 'FIRST' ar 'LAST' by the EA each time a top property comes on the market?"

(take your time...)

[oracle]

yes and above all,don't be afraid to be slightly economical with the truth yourself.

NEVER look overwhelmed even if a property is by far your dream come true...keep cool.

add in a few extras like the "mortgage in principle approved" or mate is a solicitor/surveyor/conveyancer which will speed up transaction....and then hack the asking price down by 20% for the privilege.

[right_freds_dead]

never be afraid to kick the EA in the eye with a running shoe and always remember to punch them squarely in the jaw, male OR female, everytime they come up with a looney reduction..

[Without_a_Paddle]

yes and above all,don't be afraid to be slightly economical with the truth yourself.

NEVER look overwhelmed even if a property is by far your dream come true...keep cool.

add in a few extras like the "mortgage in principle approved" or mate is a solicitor/surveyor/conveyancer which will speed up transaction....and then hack the asking price down by 20% for the privilege.

Obviously now is not the right time to buy as we all agree.

When the right time does come, (3-4 years?) you may find the market is a little different to today.

Although it may appear stagnant (like in 1995) you will find that 'dream' properties will be hard to come by because they will be being snapped up by the wiser buyers.

You will find (like I did in 1994/5) that average properties are stuck on the market for months.

You will find that the nicer properties will sell reasonably well.

The really nice ones will be gone long before the for sale board gets ordered.

Hence my advice in my first post

Saying you have a mate who is a solicitor/surveyor will scare vendors off IMO.

(Also You are unlikely to succeed in getting that dream house if you subsequently slash your offer by -20%)