As every self-respecting landlord knows, the more you save on your house purchase, the larger your profit margin. As such, you’ll need to know how to haggle successfully and drive the price down.
Not feeling too confident about negotiating costs? Don’t worry, you’re not alone. It’s a common complaint that we hear at our property investment seminars, which is why we’re here to help you with the process. In the meantime, here are some useful tips to get you started.
Getting the Buy-to-Let Property for Sale at a Cheaper Price
- Never reveal your enthusiasm. The property may well be the best one you’ve seen in ages and might be the ideal addition to your portfolio. However, under no circumstances should you show how keen you are. Downplay your enthusiasm, as psychologically, this sends a message that you can either take it or leave it, which puts you in a stronger negotiating position.
- Research the market. It’s important to be realistic about the property’s value. Do your research first and find out what similar houses have sold for in the area. You’ll want to make a cheeky offer, but you’ll still need it to be within the realms of acceptable!
- Find out what interest there is. Ask the estate agent what other interest there’s been in the property. A word of warning, though. Estate agents are skilled salespeople, and they may exaggerate the level of interest in order to encourage you to offer a higher amount. Over time, you’ll probably develop skills in ‘reading’ agents and working out when they’re telling the truth – but at the start, you may want a property investment agent to help you.
- Find out what’s included. This is a really important part of the buying process. For example, if you presume that the oven comes with the property, only to find out that it’s gone when the sale is completed, then you’ll have to fork out a few hundred pounds (at least) to buy a new one. Get it down in writing too, so there’s no confusion in the future.
- Go low (and hold your nerve). If you suspect there’s not a lot of interest in the house, don’t be afraid to go in with a low initial offer. It’s likely that it’ll be rejected, but that doesn’t matter. Sit tight, let the seller sweat it out a bit, then come back with a slightly higher offer.
- Engage the seller. Ask the estate agent to find out what sort of price the seller was hoping to get. This then puts you in a clearer negotiating position – as whatever figure they come back with, you know you’ll be able to push for less.
- Highlight the benefits of accepting your offer. If you’ve got any ‘USPs’, now is the time to declare them. For example, if you’re a cash buyer, or in a position where you can proceed quickly with the sale. These sorts of things make you seem more appealing than the other prospective buyer who’s put in an offer.
The Buy2Let Hub
Looking for buy-to-let properties for sale which offer good rental potential, plus the chance to profit from capital growth? Talk to The Buy2Let Hub. Our team of property investment agents are on hand to find the perfect house or apartment to suit your budget – with a view to developing a successful property portfolio in the future.