How to Negotiate a House Price When Selling

Correct at time of publication (2nd October 2019). The views and opinions expressed herein are those of the individual contributor and do not necessarily reflect those of the Chancellors Group of Estate Agents Ltd or its subsidiaries. References to legislation, best practice and other matters with legal implications such as fees, rules and processes are included for information and editorial purposes only and are not authoritative, nor should they be interpreted as advice. When in doubt you should only take advice from an industry professional or solicitor where appropriate. E&OE.

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Selling a home can be a complicated time for anybody. There’s lots that can go wrong and lots of ways to lose money, but don’t worry, because there’s plenty of advice available to help you avoid any pitfalls.   In this article, we’ll provide some tips when negotiating house prices as a seller in the UK, covering what you need to do to get the best deal possible. We’ll also discuss rejecting offers on your property, how to deal with counteroffers and the ins and outs of negotiating a house sale after a survey.   Finally, we’ll point you in the right direction of expert advice when it comes to selling a home anywhere in the UK.  

How to Negotiate House Price When Selling  - Top Tips 

Negotiating house price as a seller is complex, but there are plenty of ways you can achieve a higher price for your property. For ways to negotiate selling a house, take a look at our six top tips below. 

1. Understand How Much Your House is Worth

Research is the backbone of pricing your property, and you can conduct lots of it yourself.  As well as using the Land Registry to find basic information about homes in your area, you can carry out searches on websites like Rightmove and local estate agencies.  The first step in the process of negotiating a house price should have taken place before you’ve even decided to put your home on the market. Getting an accurate valuation is the only way to understand the value of your property in current market conditions. At Chancellors, we offer two options for valuing your home: 

• Our instant online valuation tool provides an estimate based on average prices in your area, assuming the property is in typical condition (i.e. without any significant improvements or a need for major repairs). 
• For the most accurate result, book a free property valuation. One of our experts will visit your property to give a detailed valuation based on the property’s condition, the neighbourhood, and prices of similar homes in the area. 

These valuations should be used as the basis of your negotiating strategy, and should inform the “ideal sale price” that you have in mind when receiving offers.  The price of your house can be affected by the time of the year, too, which not many sellers realise. Find out the best time to sell a house here. 

2. Have Your House Ready for Sale

If you have everything in place early, such as installation information regarding boilers, and important documents like electrical safety certificates and repair warranties, this will go a long way to demonstrating that you’re serious to potential buyers.   Since you’ve proven yourself as ready to make a sale, your estate agent can use this as a negotiation tactic to get a sale over the line and achieve a higher asking price. 

3. Find Out What Stage Your Buyers Are At

Understanding your potential buyer is another important area to focus on when negotiating a house price. If they’re prepared, they’re more likely to have their ducks in a row, and if not, they’re more likely to be problematic in one way or another.  Finding out key information like whether they’re cash buyers or first-time buyers will help you understand more about them and how likely they are to complete a deal that works for you.   As part of our selling services, we will do all the work to discover what stage your buyers are at. This will help you to set your expectations and give you an idea of how long the selling process might take. 

4. Add Extras and Repairs to Sweeten the Deal

Repairs or building work should always be done early in the house-selling process, but you can always agree to fix something down the line to attract a higher offer from a buyer. You can also throw in a piece of furniture or fitting that the buyer has shown interest in, which is a common tactic for sellers. 

5. Become Chain-free

Nobody likes being stuck on the chain when trying to buy a house.   As a seller, you can remove yourself from the chain by agreeing to complete the sale regardless of whether you have another property lined up. To reach chain-free status, you can rent a new place until the sale is complete or buy a new property in a shorter space of time.   Some sellers aren’t in the chain anyway, which is a great negotiating tool and something that you and your estate agent can mention to prospective buyers. 

Can a Buyer Negotiate the House Price After the Survey? 

With a traditional house sale in the UK, buyers will get a survey completed on the property once they’re ready to make a purchase.   This will happen after the price has been agreed and is in place to ensure that everything works as it should. This includes major problems, such as structural issues, that make the house worth less than agreed.  If the survey results in something that lowers the value of the house, buyers will often use this as leverage to reduce their offer. This is known as gazundering and while most sellers will consider this as unfair, it’s not illegal, and buyers often use this tactic to put the pressure on for a cheaper purchase.  When this happens, you can either accept their offer or dispute it and delay proceedings. The choice is yours at the end of the day, but if you go for the latter, you could end up losing the sale completely.   As is often the case when selling a house, communication is key. Reputable estate agents will be transparent and proactive in their communication to help to reach an agreement which is acceptable to both parties. 

How to Negotiate Selling a House  - Tips for Countering Offers When Selling a House  

Counteroffers are part and parcel of house negotiation and according to This Is Money, UK houses sell for 3.5% less than the original asking price, on average. However, this will change depending on the area you live in and how much you’re asking for in the first place.  So, you should expect a counteroffer and adjust your asking price accordingly. It’s a bit of a balancing act, however, so it is important to not go too far and lose out on potential enquiries or sales.   It’s also important not to get carried away when negotiating the sale of your house after the buyer has made a counteroffer.   Here are some points to keep in mind: 

• Don’t answer straight away, go away and think about it. 
• Ask your estate agent whether the offer is worth accepting from their professional perspective. 
• How low can you go? Answer this objectively and without emotion and get as close as you can to this number with your negotiations. If your buyer doesn’t budge, it could mean finding someone who will. 
• Consider the local market. Are other houses selling for the amount you’re being offered? If not, don’t accept it. 
• Stay calm. Selling a house can be stressful and emotional, but don’t let these things dictate the price you’re willing to sell at. 

Experienced estate agents are very well versed with the process of counter offers. Naturally, their experience will allow them to give sound guidance without the influence of emotion. They will provide expert advice and apply skilful negotiation tactics to help sellers secure a higher selling price than the counter offer, regardless of the circumstances.  

Negotiating House Price as a Seller - Rejecting Offers on Your Property  

Even though it might seem like the wheels are in motion when surveys are being carried out and negotiations are taking place, nothing is legally binding until contracts are exchanged.   Don’t feel pressured to make any decisions but also, do not reject an offer just because it doesn’t sit right with you in the moment. Remember, be flexible and try to remove emotion from the equation when negotiating house price as a seller, and don’t jump into any rash decisions.  Again, this is where the experience and expertise of your estate agent can be vital. They will be able to discern whether rejecting a deal is the correct thing to do, or if accepting the offer is in your best interests.  

How to Negotiate Your House Sale with Chancellors 

If you’re thinking about selling your property and want to make sure you don’t get caught out with your negotiations, we can help.   Providing advice every step of the way, we offer specialist services relating to buying and selling houses across Berkshire, Buckinghamshire, Oxfordshire, Hampshire, Surrey, London, Herefordshire, Wiltshire, Worcestershire, and Mid Wales.  To sell your house and start a new chapter of your life, speak to one of our experts today at a Chancellors branch near you.