To Haggle or Hold Firm

Navigating the Property Market in The Now.

The property market is a funny old world.

One minute estate agents are running out of homes; the next you’re told it’s as slow as anything. What are you supposed to believe?

The fact is, it is a dynamic and ever-changing landscape, influenced by a myriad of factors, including economic conditions, supply and demand, and even the seasons. It’s important you have a negotiating strategy whether that be to haggle or hold firm.

In the last week, Zoopla released their latest house price index report saying “annual UK House price inflation slows to 0.1%, lowest since 2012“. One unfortunate outcome of a slight decline in property prices is overvaluing by some estate agents to ensure they continue to maintain listing numbers.

Eventually these tactics crack over time as properties remain on the market for longer and homeowners question why they haven’t sold. The result is a mountain of reduced asking prices and a path of digital footprints on the property portals, leaving buyers with a reduced sense of urgency.

But just as overly ambitious valuing doesn’t mean the market is hitting new heights, reducing inflated prices doesn’t mean it has collapsed. Nevertheless, your selling strategy needs to reflect the current mood and this week’s blog discusses the pros and cons to haggling and holding firm to achieve the highest price and get moving as soon as possible.

Haggling: The Art of Negotiation

Pros of Haggling:

Flexibility: Haggling allows for negotiation and adaptability. In a market where buyer preferences and financial situations are changing rapidly, being open to negotiation can attract a wider range of potential buyers.

Closing the Deal: By showing a willingness to negotiate, sellers may encourage buyers to make an offer. A negotiated deal is often more likely to close successfully, leading to a faster sale.

Maximising Value: While you may start with a higher asking price, haggling can help you determine the true market value of your property. You may find that buyers are willing to pay more than you initially expected.

Cons of Haggling:

Price Erosion: Constant haggling can lead to a gradual reduction in the selling price. If not managed carefully, you might end up selling for much less than your property’s true value.

Time-Consuming: Negotiating with multiple potential buyers can be time-consuming and emotionally draining. It may prolong the selling process, which could be undesirable in a fast-moving market.

Risk of Losing Buyers: Being too aggressive in negotiations might scare away potential buyers who feel the seller is unwilling to compromise.

Holding Firm: The Confidence Game

Pros of Holding Firm:

Protecting Value: By sticking to your asking price, you protect the perceived value of your property. Buyers may perceive a higher value and be willing to meet your price.

Time Efficiency: Holding firm can expedite the selling process. Buyers who are serious and ready to meet your asking price may appreciate the clarity and simplicity of the transaction.

Less Stress: Avoiding the back-and-forth of negotiations can be less stressful for sellers, allowing them to focus on other aspects of their move.

Cons of Holding Firm:

Limited Buyer Pool: In a competitive market, holding firm may limit your potential buyer pool. Buyers often have many options, and they may be drawn to properties with more flexible pricing.

Extended Listing Period: If your property sits on the market for an extended period without any offers, it can lead to concerns about its desirability and potentially result in a lower sale price in the long run.

Market Fluctuations: Depending on market conditions, holding firm can be a gamble. If the market is in a downturn, your property may not attract buyers at your desired price.

Ultimately, the decision to haggle or hold firm in the current property market should be a well-informed one. It’s crucial to consider your individual circumstances, the state of the market, and your financial goals.

Ensure you speak to your agent about their strategy and how they will achieve the best price for you. Make sure you understand the valuation and their reasons behind the asking price and qualifiers (if there is one). Don’t be afraid to ask questions about how they will hold the final negotiations. This is the most important time when you rely on the agent most, so they should be taking the time to talk with prospective buyers about property comparables and seeking to find out how your property suits what they are looking for in their next home.

A skilled estate agent can be invaluable in helping you to navigate and achieve a successful sale in any market condition.

If you would like to know how the changeable market is currently affecting the saleability of your home, please get in touch!