How to negotiate house prices

In this article:

Not everyone loves negotiating. For some, the combination of dealing with confrontation and talking about money is enough to put them off entirely.

However, while you might decide it’s not worth the agony to push for a couple of pounds off a mobile phone deal, when it comes to buying a home, some sound negotiation can save you tens of thousands of pounds.

The good news is that there are a few things you can do to make sure it’s not such a painful experience all round.

Before you start

Before you start, try to put yourself in the best possible buying position, so the seller actively wants to sell to you. This means agreeing a mortgage in principle.

It also makes sense to get the ball rolling on a sale. In areas where it’s particularly hard to buy and sell, some people prepare a sellers pack with searches and surveys.

Read more: Five ways to save on the cost of having children

Some will even sell up first, so they can buy chain free and drive a hard bargain. If you’re considering this, bear in mind that the extra removals and rent can eat into any savings you make from negotiating.

Do your research

The next step is to do your research on the area, and any properties you’re interested in.

If you know what similar properties have sold for recently, it can help you negotiate down any premium on this particular house.

Don’t just look at the asking prices of homes on the road, use property websites to delve into the selling price too.

house price Loving mother pampering her son in the garden outside their house and enjoying the summer - family concepts
When it comes to house prices, some sound negotiation can save you tens of thousands of pounds. · Hispanolistic via Getty Images

Approach estate agents

At this stage, you’re ready for viewings. When you approach an estate agent, they’ll push you for your maximum budget, which they can use against you in any negotiation – never forget they’re working for the seller.

Instead, you can tell them your approximate budget and indicate there may be some wiggle room for the right property.

Make an offer

If you find a property and want to make an offer, there are some things to think through.

You need to consider the local market right now. If there’s plenty for sale, and you know properties have been sticking around for a while, it’s the time for a cheeky offer well below the asking price, so you can negotiate a compromise somewhere in the middle.

You may strike lucky, particularly with a property that requires work or is a bit of a compromise – like being on a main road or not having a garden.

Read more: 7 property planning trends of 2025

If properties tend to sell relatively quickly in the area, or this is a property with a lot of interest, you can consider making an offer below the asking price, but don’t get carried away. You could end up ruining your chances of buying altogether if they don’t feel like you’re serious.