How Do You Negotiate a House Price as a Seller in 2024
Looking at how you can negotiate a house price as a seller, the best methods of house price negotiation, and what to do when a buyer makes an offer.
Alexandra Ventress ★ Digital Content Writer
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Whilst you may be on the search for your next dream home, you may still have a property that needs to be sold. House price negotiation can be an aspect of selling your home that sends terror straight down a seller’s spine. But it doesn’t need to be this way. Negotiations can be a chance to take a low offer on a house and turn it into a final offer to be proud of.
In this blog post, we will be answering the all-important question, how do you negotiate a house price? We will also look into a property forecast for 2024 and how we can help you sell in as little as 28 days.
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2024 property market forecast
Before we get into negotiating house price as a seller 2024, we should first look at the conditions of the property market as a whole. This will give us better insight into where you will stand as a seller and how much negotiation power you will have.
The UK property market can be an unpredictable creature, fluctuating over the past decade with sky highs in the early 2000s and lows during the 2008 financial crisis. Once the market managed to make its recovery, it slowed once more due to the wider uncertainty that Brexit brought with it. And whilst COVID-19 brought with it more uncertainty, it also saw the rise in house prices, seeing market activity pick up. Pent-up demand, lower interest rates and changing buyer preferences all added fuel to the house-buying fire.
Whilst it is impossible to predict exactly what will happen with the UK property market in 2024, our property experts can take a guess at what we can expect over the coming year. The housing shortage is going to become a much more pressing issue with a growing population and a lack of housing helping to strengthen 2024 as the year of the seller’s market.
Property experts are also predicting:
- Speed is key: 2024 is set to be the year of fast house sales, with predictions setting appropriately priced houses to sell three times faster than they did in 2021. Bidding wars will become far more commonplace for properties which are desirable and priced correctly.
- Low availability: In 2021, the number of properties available for sale dropped drastically and has not been predicted to recover by 2024. This means that the listings will struggle in order to keep up with the demand from buyers.
- The sky is the limit: 5-7% annual UK house price growth has been forecast for 2023 and 2024 by experts as demand for housing outpaces the supply. If you live in Greater London, you could see a rise of 7-10% each year.
What to know before negotiating house sale
Before you jump straight into the world of negotiating, there are a few aspects of the selling process that you will need to understand first. Below we take a closer look at some of the steps of a house sale that will lay the ground work for negotiate house sale:
Before you negotiate your house sale, you need to first ensure that your pricing is correct. This will set you off on the best foot when the offers start rolling in and you need to negotiate. Whilst 2024 may be a seller’s market, this does not mean you can set any price you wish for your property. You still need to ensure that you are pricing correctly you ensure that you do not price out any willing buyers and end up wasting on the open market.
If you are entering negotiations, then at this stage you should have had a property valuation in order to set the asking price. However, if you are having doubts, or simply want to double down, then now is the time to get a second valuation. You will be able to use this when it comes to deciding whether you wish to accept, reject, or negotiate your offer.
You should rely on your estate agent for this valuation as they will have a good knowledge of your property, local area, similar properties available, recent sold prices, and the wider market.
You will also be able to use the Land Registry in order to get a very basic valuation of both your property and the properties in your local area.
Another route you may wish to explore is hiring a surveyor but be warned this can be a costly decision. The valuation you get will be more accurate however and will be a good basis for any counteroffers you may wish to make.
Gage where your buyer is
The next thing you will need to understand is where your buyer is at in the buying process. Are they a first-time buyer? Are they chain-free? Is there a current property under offer? Do they have a conveyancer? Have they started the mortgage application process?
It is important to understand as much as you can about your buyer if you want to make the most of the negotiations.
You should also look inward and consider your own circumstances. Are you looking at buying a home currently or are you waiting to sell first? Have you got your mortgage application underway?
Consult with your estate agent
If you are unsure about whether you should accept a bid on your property, you should consult with your estate agent. They are the experts and have the experience and knowledge to help you navigate the negotiations. They will also be able to inform you if the buyer is offering you the best price that they can. They will also inform you on whether or not they believe you will receive a better offer.
Another option you may wish to explore is a sealed bid. This occurs when your estate agent invites any prospective buyers to put forward a single bid. From here you can either accept one of them or reject them all if none are high enough.
As a buyer will only be allowed to put forward one bid, they will often put forward their highest offer in an attempt to win. It is worth bearing in mind that between 2013-2015 only 2% of buyers and 3% of sellers reported using sealed bids. These bids will typically work at their best with at least 2-3 serious buyers.
You may also want to consider throwing in extra features in order to raise the price of your property. If your would-be home buyers are interested in a specific piece of furniture that you may have, then they may be willing to pay a little extra for the property in order to have it included. This can be a tactic that works particularly well if you are dealing with first-time buyers who may not have a lot of furniture themselves.
Offering to do repair work can be a way to help boost your sale price and can be a handy tool when it comes to negotiating a sale price. If you are not willing to have the repair work done, then you may wish to accept the lower offer.
Is negotiating house price as seller hard?
As 2024 is a seller’s market, it means that the ball is in your court, and can be used to give you a potential upper hand. You should remember to be flexible, and willing to listen to your buyer. But you should also be careful not to dip too low below the general asking price.
Below, we take a look at some of our top tips for negotiating offers as a seller:
If you are receiving multiple offers, you should set a date to receive all of your offers by. This adds a competitive edge to the sale and helps to create a sense of urgency for the buyers.
You should always ask to receive proof of funds when negotiating. It helps to prove the legitimacy of the bid and can avoid issues with funding later down the line.
As this is a seller’s market, buyers will more than likely offer above the asking price as there is competition over limited housing stock.
You should be sure to compare all of the offers against each other. Don’t just look at the price, consider requested repairs, the timeline for moving, the deposit amount, and other factors.
You should keep any interested parties in the loop during the early days of the sale. This will help to encourage offers from people who may have viewed the house early doors but are yet to offer.
If you do not receive any bids that meet your expectations, you should go in with a price that is a halfway point between the highest bid you receive and your original asking price. This will help give you some wiggle room for negotiation.
How do you negotiate a house price When Selling Your House
Now you know what to expect, we will now take a closer look at how to negotiate a home purchase. When you put your home on the market, you should go into it expecting to negotiate on price. A tactic that some sellers employ in anticipation of these talks is to add 5-10% to the asking price. However, you should always consult your estate agent before deciding to do this.
In 2019, Zoopla conducted a survey that discovered that the gap between the average asking price and selling price has increased by approximately 3.9%.
When it comes to negotiating, you need to be flexible. You should carefully consider an offer before deciding whether to accept, reject, or negotiate. When you offer a counteroffer, it will typically be a little below the desired asking price to not lose the sale and to keep the buyer interested. Whilst it is worth to be flexible, you should never dip too far below asking.
Before you provide a counter offer, remember to:
- Take your time to think the offer through
- Consult your estate agent and compare the offer to the property’s value
- Review the local housing market to get an idea of an appropriate figure
- Take into consideration any potential repair costs against the offer you were given
What is reasonable to offer below asking price 2024 UK?
As a seller, you can expect to receive an offer that is anywhere between 5%-10% below your set asking price. However, you may receive offers that or less than this sum or more, it will depend upon a variety of factors, such as the condition of your property, the location, your buyer’s personal circumstances, and the local property market.
If you receive a lower offer than expected, then you should not panic. You are under no legal operation to accept it, and you do not have to come to a decision about it straight away. A lower offer is often offered first by buyers as a means to start a negotiation. From here, you can negotiate the price and terms of the property and return with a counter offer for your potential buyer.
What should I not say to a house buyer
When it comes to selling your home, it is always wise to play your cards close to your chest. You should be friendly with any potential buyers, but when it comes to small talk, you should be careful about what you do and do not say, as one false move could end up giving away any negotiation power you may have held.
Below we take a closer look at what not to say to a buyer when selling your home in 2024:
You want to sell fast
If you tell a prospective buyer that you are in a hurry to sell and are looking for a quick sale, it can damage your chances of negotiation beyond repair. It is never a good idea to show your hand too early, and by revealing that you are in a rush to sell will mean that the buyer can offer less than they were originally going to and still potentially get the house.
It can also be a good idea to try and avoid revealing any information that may indicate that you want a fast sale, such as you are selling due to illness, money struggles, or divorce.
If you are not in a particular rush to sell, you should also play this close to your chest. If an agent does not think of your sale as a priority you may find yourself wasting away on the open market.
You are looking for a specific buyer
As a seller, you may be looking for a first-time buyer to sell your property to, or you may be looking to sell to someone who loves your property as much as you do. However, you should be careful not to voice any of these feelings out loud. You do not want to turn away any potential buyers who could have been about to make an offer and are willing to pay.
How can we help?
If you are looking to negotiate house sale, or are thinking about putting your home on the market, then we are here to help. We are The Property Selling Company, an online estate agency with a difference. We were founded to shake up the traditional world of estate agencies and offer you a selling route away from the norm.
We have one simple goal, to change the way you sell your home. The days of expensive solicitor bills and estate agent fees are over, we cover the costs so that you don’t have to.
We pride ourselves on our personal philosophy that selling a house should be three things; fast, effortless, and free. That’s why we offer a tailored service, where our team of property professionals are by your side throughout every step of the process. We will advertise your property on Rightmove and Zoopla, organise viewings, cover your legal fees, and negotiate better deals for free.
We are making the challenges of selling your home a thing of the past. Over the years, we have built a seamless process to provide you with an excellent service and sell for free.
So if you are ready to sell your home fast and for free, get in touch today and fill out one of our free, no-obligation forms today!