Negotiating the Deal

If your first offer isn't accepted, don't be afraid to haggle - even if a property is priced realistically, most vendors will accept offers around 5% less than the asking price. Your bargaining position will be strengthened if you aren't part of a chain, and cash buyers may also be able to negotiate a considerable reduction for a quick sale.

Justifying Your Offer

If you make a low offer, it's a good idea to explain to the vendor a few negative points that will merit a reduction in price. You may be able to negotiate a considerable reduction if there's a lot of work to be done. However, avoid being too critical, as they may feel insulted and refuse to sell it to you on principle! It may also be useful to obtain an independent valuation - if it's less than a vendor is asking it may encourage them to lower their price.

Getting the Best Deal

Developers may offer incentives to buyers of new apartments or houses, such as paying legal fees and stamp duty, free furnishings, such as carpets or kitchen appliances or upgraded fittings, so try to get as much included in the price as possible.

Setting the Terms

An offer made in writing (supported with information about funding and legal arrangements), will be taken more seriously than a verbal offer. However, before agreeing a price, you must make sure the terms of your offer are clear - they should include the following:

• Any work that needs to be done on the property by the vendor before completion
• A list of fixtures and fittings that are included in the sale
• The offer being subject to a survey and contract - if the survey brings to light any work that needs doing you may need to re-negotiate the price

An offer should also be conditional on the vendor taking the property off the market whilst you obtain a mortgage, have a survey and have your conveyancer carry out searches. You may be able to get them to sign a lock-out agreement, where they will take the property off the market for a period during which contracts are exchanged.