A Guide to Scoring the Best Deal When Buying Your First Home

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So, after months of searching, countless house viewings, and maybe a few cups of coffee, you’ve finally found the home of your dreams. Exciting, right? But before you rush in with an offer, let’s chat about how to snag the best deal when buying a home.

Understand the Market

First off, let’s talk about the current landscape. Contrary to what some predicted, the housing market has been booming post-COVID. In fact, average house prices hit record highs earlier this year, and homes are selling faster than ever. Many properties are flying off the market within hours, often leading to bidding wars. So, how do you make your offer stand out while still getting a great price when buying a home?

Get Your Finances in Order

One of the most crucial steps before making an offer is sorting out your finances. Every seller has different priorities. Some may want a quick sale, while others might hold out for the best price. If you’re not a cash buyer, securing a mortgage in principle can be your secret weapon. This shows sellers that you’re serious and financially capable of following through on your offer — making you a more attractive buyer.

Know the Competition

Don’t be shy about asking the estate agent about other potential buyers. Find out how many viewings have taken place and if any offers have been made. If the property has seen a lot of interest but no offers yet, that could be a clue. Use any feedback the agent provides to your advantage. For instance, if potential buyers were put off by a small garden, you might consider making a lower offer and voicing those concerns as a reason.

Also, do some homework online. Check how long the property has been on the market and investigate recent sales of similar homes in the area. If it looks overpriced, a professional valuation might be worth considering — it could give you leverage in negotiations.

Take a Second Look

The first viewing is all about falling in love with the place, but the second viewing? That’s your chance to get practical. Pay close attention to any flaws or repairs that might be needed, as these can provide valuable negotiation points. If there are issues that you’ll need to address, you can use this to justify a lower offer.

Make Yourself an Attractive Buyer

When multiple offers come in, it’s not always about who offers the most. Sellers are often looking for reliability. If you’re chain-free (meaning you don’t have to sell another property first), that’s a big plus! In fact, many sales fall through due to chain issues, which can create stress for everyone involved. If you’re currently in a home, consider selling first or even using a quick sale company to turn your property into cash. Cash house buyers will work to a timescale that suits you, which could be as little as seven days, and some can allow you to retain access to your home for a period after it sells. This makes you a chain-free buyer — the seller will love this! — and there’s no need to move into rented accommodation.

Start with a Lower Offer

Here’s a little insider tip: always start with a lower offer than you’re willing to pay. This gives you some room to negotiate. However, if the seller is asking for best and final offers, make sure to offer your maximum budget without crossing the line into unaffordable territory. Remember, it’s essential to stay within your means. Highlight your strengths as a buyer – like being chain-free – to make your offer more compelling, even if it’s not the highest.

The Bottom Line

Negotiating the price of a home can be tricky. Sometimes sellers are firm on their asking price, and if that’s the case, it may be time to look elsewhere. But if there’s room for negotiation, do your research, start with a lower bid, and strengthen your position as a buyer. This strategy can significantly increase your chances of getting the best deal when buying your first home.

Until next time.