If your New Year resolution was to move house in 2025, then this is for you. Whether it’s your first property or you are moving up the property ladder, an easing of interest rates and mortgage rates has put home purchases in reach again for many who had previously put such plans on hold.
It’s widely touted as a buyer’s market, which means you might have the upper hand. But sellers also want the best possible deals. So, what are the most effective negotiation tactics to ensure you get the property you desire this year?
Be bold and brave with your offer
After submitting your note of interest, the Scottish system means that being bold and brave with your offer can be an important factor in clinching your deal. As part of the ‘offers over’ process properties in Scotland are listed at a guide price that is a starting point for your offer rather than the final asking price. Should there be competition for the property it will move to a competitive bidding process with a closing date for submitting offers which aren’t opened until that point. You need a realistic offer that stands out.
Get pre-approved and show you are ready to move
Sellers won’t look at price alone, however, and the other conditions attached to a possible sale will also help sellers determine which buyer to choose. Showing that you can move fast is attractive for sellers and will help in your negotiations. You will already have had to appoint a solicitor to handle the legal aspects of your purchase before making an offer since they submit it on your behalf. You should also get a mortgage in principle to prove that you are a serious buyer. Anything you can do to shorten your chain could also be a useful negotiation tactic.
Use the home report for bargaining power
In Scotland, the Home Report must be shown to any buyers interested in a property before they put in their offer. The Home Report will give key details on the property which you can use to negotiate your offer. This includes the property’s Energy Performance Certificate, a survey and a property questionnaire.
Research the local area and similar properties
Your offer will be based on your perceived value of the property, and how much you want it. Thorough research of the area and the property will determine how closely it fits your needs and whether it’s right for you. Look at the final selling prices of other similar properties too. This will help you to gauge whether the starting price is fair and how far over it you should offer.
As soon as your offer is accepted, and contract details have been agreed, the exchange of letters between your solicitor and your seller’s (known as concluding the missives) forms the legally binding contract that will lock you into that sale. Certainty is vital.
Ask to keep details on file if you are unsuccessful
If your offer does go to the competitive process and is rejected but you still really want the property you can’t usually up your offer or do anything else to secure the property. However, your solicitor can ask for your details to be held on file in case the accepted offer falls through.