June 27, 2024
Who doesn’t love a good deal? You stand to save (or gain) thousands of pounds if you can buy for a bargain and sell for a premium.
As Yorkshire’s local estate agents, we’re partial to a good deal ourselves. That’s why Simon Blyth goes above and beyond to help clients achieve their property goals. We know the local market inside and out and offer a personal touch to everyone who walks through our door.
Understanding Market Dynamics
It’s essential to understand the trends and needs of the local market, whether you are purchasing or selling a property.
Analysing Market Trends
Understanding national and local fluctuations in property prices, housing availability, and factors such as interest rates, inflation, and even employment rates can stand you in good stead, whether you’re negotiating a purchase or a sale.
Pricing Strategies
Pricing a property is based on a number of factors, including the demands of the local market, and the value of the property.
As well as looking at the property size, age, condition, and features, it is important to have a deep understanding of the comparable property sale prices in the local area. That’s where your local estate agent’s expertise comes in handy.
We have insight and data into the property prices across the Yorkshire region and can advise both buyers and sellers on how to get the best deal, based on hyperlocal market trends.
How to Secure the Best Deal When Buying Your Home
Preparation for Buyers
As a potential home buyer, your goal is usually to negotiate the price down. Here’s how you can come into the negotiation fully prepared.
Establish Your Budget
Your budget is based predominantly on two key factors: How much cash you have available to put down as a deposit, and how much you can afford to spend on repayments each month. Once you understand those two numbers, a bank or mortgage broker will be able to offer a mortgage-in-principle (or pre-approval) for a mortgage — and you’ll be able to understand the total amount available (your deposit + the amount your lender is willing to fund) for your budget.
Identify Your Must-Haves
Understanding from the outset which property features are must-have non-negotiables and which are nice-to-haves, can help you streamline the search for your perfect property.
Research Properties
As well as browsing the big property websites, approaching an estate agent with local knowledge and expertise can be a great way to find the right property, in the right area, at (or near) the right price.
Negotiation Tactics for Buyers
Now it’s time to negotiate with your seller. Usually, negotiations happen through an estate agent. Offer too high and you could end up paying more than you have to, offer too low and you could lose the property altogether.
Make Competitive Offers
It is typical to make an offer around 5-10% lower than the asking price. Check how much similar local properties have sold for, to get a good idea of whether your offer is competitive and realistic. Make a low offer and be prepared to negotiate up a little.
Negotiate Terms
Make your offer through your estate agent. If you are in a position to move quickly, let the seller know! First-time buyers, cash buyers, and buyers with no onward chain (ie. you’re not buying and selling simultaneously) are all attractive prospects to sellers.
How to Secure the Best Deal When Selling Your Home
Preparation for Sellers
When selling your property, you probably want to negotiate the highest price. It’s important to prepare both your property and your mindset for the negotiation process.
Prepare Your Property
Maximise the appeal of your property to command the best price. Make any repairs and improvements needed, declutter (both inside and out), add a fresh coat of paint, and invest a little in tidying the front exterior and garden of the property.
Set the Right Price
It’s important to set the right price to attract potential buyers while still maximising profit. Take into account the sale prices of comparative houses nearby, as well as the general economic climate and property price trends.
Negotiation Tactics for Sellers
At crunch time, it’s important to be able to negotiate the right price for your property. Too low and you could leave money on the table, too high and you risk your buyers walking away altogether.
Evaluate Offers
While price will be a big factor in comparing offers from potential buyers, it shouldn’t be the only one. Consider the potential buyer’s readiness to move: Are they part of a chain? Do they have a cash deposit and a mortgage in principle lined up? Evaluate offers on all their merits, and consider how quickly you want and need the sale to move.
Counter Offer Strategies
Make sure to move quickly and be responsive when making counter-offers. You can counter-offer the asking price, or somewhere in-between. Understand the local market and comparable property prices, to get a good idea of where you can expect your negotiation to end up.
Conclusion
Buyers and sellers may seem like they’re in opposition to one another. But ultimately they both want the same thing: to exchange on a property, at the best price for them.
Buyers should understand their budget and financial position, and look at comparable property prices in the local market to negotiate the price down.
Sellers should make their property as appealing as possible and get a good understanding of local property prices and trends to negotiate the price up.
Ready to get the best deal — whether you’re buying or selling in Yorkshire? Leverage the expertise of Simon Blyth Estate Agents to get the most bang for your buck.