Hi! I have recently joined District 34 as an external adviser to the business and in my day job, I work for a property Investment Fund investing in UK Social Housing. I have a passion for enabling social mobility through real estate and educating young people on all things property, getting them on the housing ladder as soon as possible - making my personal values align closely with those of District 34. Negotiation is a key skill used daily in my role when securing deals for the Fund. I have also recently exchanged on my own new-build flat alongside my partner, so I’m delighted to share my own knowledge on negotiating a great deal when buying a home.
My negotiation skills came in handy when negotiating the deal on my property, saving my partner and I tens of thousands of pounds on the marketed purchase price.
Thanks to our persistent negotiating, we were able to make alterations to our flat too, making it better suited to what we wanted.
Often when people think about negotiation, they end up in one of two camps. The first camp is those who love negotiating and will haggle to get a better deal at any opportunity. These people get a thrill from negotiating; even a few pence off can feel like a massive win. The second camp is those who hate negotiating, often finding it to be an awkward experience. These people actively avoid negotiating, or at least they think they do.
The reality is that negotiation is part of our everyday lives.
Each day we negotiate with ourselves and others about a variety of different things. These can span from whether we can afford an extra 10-minute lie in, to whether to post that picture on Instagram, to who should cook dinner. These are all examples of negotiation, so it is a skill that we all have and we all use regularly. Negotiation is something that should not be shied away from but rather embraced, particularly when making one of the largest lifetime purchases you will likely ever make: buying a property.
Why is Negotiation Important?
Quite simply, negotiation is important because it can get you a better deal than the one put on the table. Negotiation is a discussion intended to produce an agreement between two or more parties. In the case of property, the two interested parties are the Seller and you, the Buyer. The Seller is incentivised to sell at the highest price and the Buyer is incentivised to buy at the lowest price.
Both the Seller and you will have different ideas about what an agreeable price is. The Seller does not know the highest price you are willing to pay and you do not know the Seller’s lowest price they are willing to sell at. Negotiation is the process through which that fair price is revealed; this will be somewhere in the "zone of possible agreement". It can be a slow process with multiple offers from both parties but eventually you will either agree on a fair price or you will move onto another property and the Seller onto another potential buyer.
Negotiation in Property
Negotiation is all important when purchasing a property – it will always get you a better deal. There are many things you can negotiate on when buying a property but the main aspect to negotiate on is price...
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We hope you enjoyed this snippet from our popular piece on negotiating a great deal on your first home. If you’d like to read the article in full, including:
- why doing your research is key
- there's more than just the house price that can be negotiated
- the best techniques to use
- Nathan's top tips on negotiating effectively
- and more
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