Negotiation Tips To Help You Buy The Ideal Houses For Sale In London On The Most Favourable Terms Possible

How To Increase Your Bids when negotiating for houses for sale in London.

Patience is vital in negotiations.

If you rush one offer out after another you will end up paying more than you need to because you will appear desperate. The image you want to portray is one of detached interest: you like the property, but you will be happy to leave the negotiations at any stage if they are not progressing satisfactorily.

This attitude should be evident by your behaviour. Depending on the market, we have waited weeks and sometimes even months between each offer. Obviously the timing is a matter of judgement rather than any hard or fast rules. In general though if it is a buyer's market you can afford to take your time, but be careful not to let a god opportunity slip away because you became complacent.

The way you increase your offers when looking for houses for sale in London will also convey your intentions. For example you do not want to start with a low offer and then make a huge increase. Then make another small increase and then a large bid. You will lose all credibility and the seller will assume that you are able to afford much more. This will lead to you agreeing a much higher price or terms than were necessary.

The way to increase your offers is in decreasing increments - Say your target price is £6m and your initial offer was £5m. You may decide to increase to £5.5m, then £5.75m, then £5.87m etc. By following this method the seller will realise that you are nearing your maximum price and that there is little further room for negotiation.

Remember you want the vendor to be worried about losing you as a buyer. You do not want the owner to think that you must by the home at almost any cost.

How To Make An Offer.

How you put the offer forward to an agent when looking for houses for sale in London will also make a difference. I always advise emailing a letter. Your letter should contain the following:

1. The proposed purchase price written in both numbers and words to avoid any confusion.
2. The offer must always include the words “subject to contract and survey” (unless you decide not to have a survey), e.g. We would like to offer ten million pounds (£10,000,000), subject to contract and survey.
3. Always confirm your financial position. For example state that you are cash buyers or that all the financing has been agreed. If you do not need to sell a property mention this too.
4. Include any other information that makes you an attractive buyer. However, do not necessarily state that you can complete in 3 days if this is not appropriate at this particular stage of the negotiation.
5. Always ask for an exclusivity period. Discuss this with your solicitor, who will advise you on the best way to phrase this. If phrased correctly this can help avoid gazumping (Gazumping is the practice of the vendor accepting a bid from another buyer looking for houses for sale in London despite having previously agreed a price with you. Unfortunately the legal system of buying property in the U.K. is highly unsatisfactory. Nothing is legally binding until contracts have been exchanged. This can take three weeks and sometimes much longer).
6. If you have comparable information that justifies your bid then include that in your letter or add it as an attachment. I would not do this with your initial offers.

You should also call the estate agent before you email the letter to say that you are putting an offer forward. Then ask them to call you if they have not received anything within ten minutes. This just ensures that they receive the email. You do not need to give them the figure over the phone.

Money Isn’t Everything

Money is often not the only motivating factor when somebody decides to sell their home. Once again this goes back to the point on information gathering. The more information you have the better your chances of negotiating an astute acquisition.

Always ask yourself "What can I offer the sellers which would be of huge value to them but of little cost to me?" It may be a quick exchange and completion. It may be a quick exchange and delayed completion to allow them time to find another home. Perhaps they want to be paid in Yen rather than sterling. If the sellers are car enthusiasts perhaps you have a vintage car you were thinking of selling that they may take at a premium price as part payment.

Alternatively you may increase your bid by demanding less. For example your last bid may have been £4m to include all the furniture, paintings, mirrors and the fact that you wanted a quick exchange but delayed completion (see Negotiation – Part 1). You initially asked for these knowing that they were not important to you. However, you can now concede one or two of these points, which is effectively improving your bid at no cost to you. However, you need to time these concessions effectively and this is often best done towards the end of a negotiation.

The secret to acquiring the finest houses for sale in London is to keep discovering as much information about the owners and then be as imaginative as possible about what you offer.

If you can combine the two the results can be astounding.

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