How to negotiate the best price when you buy

These are a few useful techniques for negotiating the price.

Do your research. Research what other similar properties are going for. If you are going to use other properties as some justification, then you have to be prepared for the agent responding that the other property is in much better decorative condition, or that the rooms are bigger, or the layout more attractive, to account for the higher value. So take those factors into account yourself.

Don't deal with the seller direct. Generally speaking, it is a bad idea to negotiate direct with the seller. Price negotiations work best when each side has a chance to consider an offer, or a counter offer, and to respond carefully. Bandying figures back and forth, can lead to an angry confrontation. One side or other will pull out altogether, when you should really continue negotiating.

Negotiate through the agents. The agents are the best people to conduct the negotiation. Although they act for the seller, their commercial interest lies in achieving a deal, for which they are paid commission, so they will work hard to persuade the sellers to compromise.

The sellers were told to sell for less. There is no correct price to the nearest pound for a property. Within a certain band, any price will be justifiable. Various agents will have come up with different prices when the seller first put the property on the market. The sellers probably went with the agents quoting the highest price, but they will remember that other agents suggested a lower price, so your reduced figure may in fact not seem totally unreasonable to the sellers. It's always worth going for a reduction unless you know lots of buyers are bidding for the property.

Don't confide in the agent. It would be a mistake to confide in the agent . The estate agent has a lot of commission riding on getting a deal done, and to do that he has to make the parties compromise. If you tell him how much you are prepared to pay, or how desperate you are to get the property, he will then put pressure on you to compromise up to the hilt. He is friendly to you because it is natural to be friendly when dealing with people, and it's in his business interest to keep you involved; it is not because you are his best friend. He isn't trying to get you a bargain. His duty is in fact always to the seller who is his client.

Offer less than the agent suggests. If the agent suggest the figure at which to start negotiation, offer less. Don't make it a ridiculously low figure, but a figure you can justify. And then the agent and the seller know that you are not going to be easily manipulated.

Have other properties up your sleeve - even if you don't. Make it clear that you are looking at other properties which are not quite as interesting to you, but which you could switch to if you need to. That puts pressure on the seller that you might not hang around forever.

Keep a poker face. Don't chase the agent for an answer in an agitated way. You can say you expect an answer by a certain time or you will have to consider your options. That is a stronger way of presenting it. He won't know what your options are but it might be to make an offer on another property instead.

Take time going back. In a seller’s market, you have to react quickly. But unless you think there is a lot of interest in a property, take your time to consider a seller’s counter offer. Don't go straight back with a further counter offer. Make it seem as if you are struggling in your mind whether to carry on negotiating or to back out.

Explain your reasons for a reduced offer. When you make an offer below the asking price it is always vital to explain the reasons for the offer. Don't make it look as if you are just negotiating as if buying a carpet in a bazaar. Explain why you think the property is worth less than the asking price. Explain, for example, that a house down the road went for less, but it was in a better location, and with slightly larger bedrooms. You have to be careful not to base your argument on a comparable property if the seller can immediately point out that his property has an advantage which justifies the increased price. But the point is that you can talk numbers if you appear to be doing it on a scientific basis, rather than just trying to take advantage of the seller.