How to negotiate house price rises and discounts

1. Get a mortgage in principle

Applying for a mortgage in principle through a broker, like our partner Mojo Mortgages, or directly with a lender, can strengthen your buying position. It gives you an estimate of your maximum borrowing potential, though it’s not a formal mortgage offer.

Having a mortgage in principle makes estate agents and sellers take your offer more seriously, as it shows you’re financially prepared. This can give you an edge when negotiating a house price discount, making sellers more likely to accept your offer over one from a buyer without a mortgage in principle.

You can compare mortgage deals now and apply for the best one before you put in an offer.

• Compare residential mortgages if you are buying a home to live in yourself

• Compare buy to let mortgages if you are buying an investment property

If you need help choosing the right deal, a mortgage broker can help you decide and speed up the application process.

2. Do your research

Assess interest and property value

Ask the agent how many viewings the property has had and if there have been any offers. Low demand gives you leverage to start with a lower bid.

Check when the property was first listed on the estate agents website, or property websites like Zoopla. homes on the market for a while may have more flexible sellers. If there have been many viewings but no offers, ask why and use this insight to your advantage.

For extra bargaining power, consider paying for a valuation by a chartered surveyor. If the property is worth less than the asking price, you can use this to negotiate a discount.

Research local property prices

Knowing the going rate for similar properties in the area is key to negotiating a discount. If you can show the asking price is higher than recent sales nearby, you’ll have a stronger case for a reduction.

Use the Land Registry or sites like Zoopla to check recent sale prices.

If you think the property is overpriced mention it to the estate agent — they may feed this back to the owners, who may decide to drop the price. This could save you the hassle of working out how to negotiate house price reductions.

3. Identify property flaws and potential future costs

While it’s easy to get excited about a property, stay objective. Any flaws or upcoming repairs give you leverage to negotiate a discount.

Inspect the property thoroughly and estimate the cost of necessary work. Deduct this from your offer price.

Ask about potential future expenses:

• When was the boiler last serviced?

• When was the roof last repaired or resurfaced?

• When was double glazing installed?

• Does the property need redecorating?

If major work is likely, you have a valid reason to push for a price reduction.

11 Secrets for Successful Property Viewing

4. Highlight your buyer advantage

Not all buyers are equal in the property market. If you're a first-time buyer, paying in cash or have already sold your home, you will be a much more attractive buyer than someone waiting on a long property chain.

Let the estate agent and owner know that you're a desirable buyer and you'll have more weight when haggling over the asking price.

5. Imply interest elsewhere

There is no harm when you are looking around a property or haggling over price to indicate that you are also interested in another property in the area — even if this is not strictly true.

Estate agents often imply that there has been lots of interest in a property to try to force a buyer's hand, so letting them know you have several other options may mean they are more open to negotiating house price discounts.

6. Start with a low offer

You may need to make an initial offer to gauge the seller’s flexibility.

• Offer below your maximum budget to give yourself room to increase later, making your higher bid seem more appealing.

• Justify your offer by highlighting any required repairs and estimating the costs.

• Reference local sales if similar or better properties have sold for less.

Backing up your offer with clear reasoning shows you’re serious, makes the seller rethink their valuation, and strengthens your negotiating position.

7. Ask for extras

If the person selling the house is not willing to budge on price, you may want to haggle over the additional costs you face when buying.

Asking that the seller contributes towards these fees could be a good way to cut the cost of purchasing the property and save hundreds or possibly thousands of pounds, even if you don't manage a reduction in that actual house price.

You could also ask for certain things, such as curtains and appliances, to be left by the current owners to reduce your set up costs even further.