Strategies and Trends in Offering Below Asking Price in the UK Housing Market
In today's UK housing market, offering below the asking price has become a more common strategy for buyers. For instance, a Brighton couple successfully offered £35,000 less than a £575,000 asking price, a move accepted by the seller which suggests the initial price may have been inflated due to the property's condition.
Data from Zoopla indicates that on average, UK homes sell for about £16,000 under the listing price, amid an annual house price growth rate that has slowed to 1.3%. Sellers often price properties high influenced by loss aversion and past investments such as renovations. However, tighter budgets resulting from the cost-of-living crisis and increased mortgage rates have made buyers more discerning.
Estate agents may list properties with higher valuations to test the market, but the final sale price tends to reflect comparable sales, demand, and the property's condition. Buyers are advised to substantiate their lower offers with evidence like surveys or noting repair needs, and to communicate respectfully to maintain a balance between realism and negotiation strategy.
Engaging directly with sellers through personal letters can help build rapport and potentially achieve lower offers, although this approach is not guaranteed. It is important to avoid blatant lowballing or aggressive tactics such as gazundering, which can provoke defensive reactions and harm negotiations.
Currently, the market favors buyers due to constrained supply. However, if buyer confidence increases, the balance of power could shift back towards sellers, potentially leading to price rises. Still, moderate reductions in offer prices can provide savings that offset costs such as renovations, deposits, or stamp duty.
