How do you negotiate house price?

• Negotiating house price is normal and expected - most sellers anticipate buyers will negotiate.
• Start with offers 5-10% below asking price but adjust based on market conditions and property factors.
• Cash buyers and chain-free buyers have the strongest negotiating position with sellers.
• Do your research on comparable sales and understand the seller's situation before making offers.
• Get any agreed price in writing and inform your mortgage lender immediately of changes.

Knowing how to effectively negotiate on a property could save you thousands, yet many buyers don’t do it simply because they don’t understand how to negotiate effectively.

The good news is that negotiating a price on a house can be easier than you think – especially if you have the knowledge of the seller’s situation and the local property market.

We’re going to break down everything you need to know about negotiating house price here.

Negotiating house price is simply the process of agreeing on a final purchase price. It’s a normal practice so it’s important to remember that there is no need to be afraid of negotiating. Buying a house will be one of, if not, the biggest purchase you’ll make in your life, so it’s fair to try and get the best deal possible.

Plus, most sellers will expect you to negotiate, so it won’t be a surprise to them. While it can be a little intimidating, knowing that sellers expect it and understanding how to negotiate will help you prepare.

The process works through the seller’s estate agent, who passes your offers to the seller and brings counteroffers back to you until you reach an agreement, or one of you walks away. Estate agents must pass on all offers by law no matter the number.

Learn more: How much should I offer on a house?

Remember, asking price and selling price are different. Sellers often set their asking prices slightly higher than they’re willing to accept, expecting buyers to negotiate down. This gap between asking and expected selling price is where your negotiation happens.

You can negotiate on almost any property, but your chances of success depend on several key factors that can impact your bargaining power:

Market conditions

In a buyer’s market – where there are more properties for sale than buyers – you’ll have a much stronger negotiating position. When sellers are competing for fewer buyers, they’re more likely to accept lower offers.

Whereas in a seller’s market with high demand and low supply, negotiation becomes harder as sellers can afford to wait for better offers.

Property specific factors

Some properties are ripe for negotiation. Look out for these when you’re viewing properties:

• Properties that have been on the market for several months without selling.
• Homes that need obvious repairs or renovations.
• Properties with unusual features that limit buyer appeal.
• Houses where the seller has already found their next home and wants a quick sale.

Learn more: Questions to ask at a house viewing

Your position as a buyer

Got something that’s appealing to sellers? Make sure you use it, if any of the below apply to you, make sure you make it known in your offers:

Cash buyers

Cash buyers have the strongest position as they can move quickly without mortgage delays. Sellers may prefer cash buyers because there are fewer risks, and they can usually complete a lot quicker than someone taking out a mortgage.

Chain-free buyers

To be a chain-free buyer you need to be a first-time buyer, someone who doesn’t currently own, or buying an additional property. When you’re not dependent on selling your own property first, sellers know the transaction is more likely to go through smoothly, making them more willing to negotiate on price.

Flexible on completion dates

If you can match the seller’s preferred timeline, they may accept a lower price in exchange for convenience. Some sellers need quick completions due to relocations, whilst others may need longer timescales. Accommodating their needs can become a valuable bargaining chip.

Being a serious buyer

Even showing you're ready to proceed and won't waste the seller's time can help. Having a mortgage agreement in principle demonstrates you can afford the property and removes uncertainty for sellers, putting you ahead of buyers who haven't sorted their financing.

1. Do your research

Before making any offer, research what similar properties have actually sold for (not just their asking prices) using property websites like Rightmove or Zoopla. Look at homes sold within the last 6 months in the same area with similar size, condition, and features. This gives you a realistic baseline for what the property is actually worth and strengthens your negotiating position with facts.

2. Understand the seller’s situation

Try to find out why the seller is moving and their timeline. Are they relocating for work and need a quick sale? Have they already found their next home? Are they downsizing or upsizing? Sellers under time pressure or those who've already committed to another purchase are often more willing to negotiate. Don’t forget, you can ask the estate agent tactful questions about the seller's circumstances.

3. Make your initial offer

Start with an offer 5-10% below the asking price as a general rule but adjust based on your research and the seller's situation. Make your offer through the estate agent, clearly stating the amount and emphasising your strengths as a buyer (cash, chain-free, flexible dates, etc.). Always follow up your verbal offer with an email to create a paper trail. Remember, agents cannot legally require you to use their recommended services as a condition of purchase. You're free to choose your own conveyancer, broker, and other professionals.

4. Handle counteroffers

Expect the seller to counter your initial offer - this is normal negotiation. Don't take it personally or react emotionally. Consider their counteroffer carefully and decide whether to accept, reject, or make another counterproposal. Remember your maximum budget and stick to it. Each round of negotiation should move you closer to a middle ground.

5. Negotiate after the survey

If your survey reveals issues like structural problems, damp, or needed repairs, you have grounds for further negotiation. Calculate the estimated cost of fixing these issues and present this as justification for reducing your offer. You can even get a professional tradesperson to come in a quote for specific work (though it isn't always possible) which will help strengthen your position.

Yes! As well as understanding what to do when negotiating, you’ll also want to know what not to do. Avoid these mistakes when negotiating on a house:

Going too low

While you’ll want to leave room for negotiation, starting with a very low offer could backfire. Offers more than 15% to 30% below asking are often dismissed immediately, and you risk the seller refusing to engage with you at all. You might also miss out if another buyer makes a more reasonable offer while you’re trying to recover from your lowball attempt.

Showing too much emotion or desperation

Don't tell the estate agent this is your "dream home" or that you "must have it." Once sellers know you're emotionally invested, they have less incentive to negotiate. Keep your interactions professional and factual. Similarly, avoid making multiple offers in quick succession as this signals desperation and weakens your position.

Not knowing your maximum budget

Before you start negotiating, be crystal clear on the absolute maximum you're willing and able to pay. This includes factoring in stamp duty, legal fees, surveys, and moving costs. Without a firm ceiling, it's easy to get caught up in the negotiation and overspend. Stick to your limit, remember - there will always be other properties.

Ignoring market conditions

Trying to negotiate 10% off in a hot seller's market where properties are selling within days is unrealistic. Similarly, making an offer at asking price in a buyer's market where properties sit unsold for months means you're probably overpaying. Always adjust your negotiation strategy based on current local market conditions.

If you’ve got yourself through negotiations with an accepted offer, congratulations! Here’s what you need to do next:

Get the agreement in writing

Once you’ve had an offer accepted, ask the estate agent to confirm the agreed price in writing via email. This creates a clear record of what’s been agreed and prevents any confusion later. The written confirmation should include the final purchase price, any conditions discussed and the proposed timeline. Make sure you ask the estate agent to take the property off the market to avoid being gazumped.

Inform your mortgage lender immediately

If you’ve negotiated the price down, contact your mortgage lender or mortgage broker (if you’re using one) straight away to update them on the purchase price. This could affect your loan to value ratio and could potentially improve your mortgage terms. Your lender may need to adjust your application, which can take time, so it’s important that you don’t delay here.

Progress your purchase

With the price agreed, it’s time to push your purchase forward. You can now instruct a conveyancer to handle the legal side, book your mortgage valuation and survey, and begin the formal buying process. Remember that until you exchange contracts, either party can still withdraw, your purchase isn’t legally binding yet.

Can you negotiate on new build properties?

Yes, you can negotiate on new builds. Developers often offer incentives like paying stamp duty, including upgrades, or price reductions, especially when demand is lower.

Should you negotiate if the property is priced fairly?

Even if a property seems fairly priced, there’s no harm in making a slightly lower offer. Market conditions, property condition, or the seller's circumstances might still give you room to negotiate 2-5% off the asking price. Use your best judgement in this situation.

What if the seller rejects all your negotiations?

If negotiations stall, you can walk away and look for other properties or wait to see if the seller becomes more flexible over time. Sometimes sellers become more realistic about pricing after a few weeks on the market.

Can you negotiate on other things besides price?

Yes, if the seller won't budge on price, you might negotiate on completion dates, what's included in the sale (furniture, appliances, garden equipment), or ask them to cover some of your costs like surveys or legal fees.