3. The sellers focused on recouping what they paid
Many in this cohort bought during the post-pandemic race for space, when competition was fierce and prices were high. At the very least they want to recover their costs, including stamp duty.
They may also have spent on renovations and improvements, leaving them convinced the property must be worth more than what they paid, regardless of where the market is now. They are emotionally and financially anchored to their figure, and selling at a loss is difficult to accept.
With expectations based on their own expenditure rather than current market values, this group of sellers is particularly difficult to negotiate with. Many aren’t genuine sellers as they have no intention of letting the property go for less than what they paid, so as a buyer you need to rule them out from the start, rather than become frustrated trying to negotiate with them.
If the agent makes it clear there’s zero flexibility on price, move on, but keep an eye on it. If you haven’t found a property in three to six months, consider revisiting it as the seller may have become more amenable to negotiations.
If there is flexibility, however, proceed carefully. The seller is likely to be hurting and highly sensitive, so bowling straight in with an aggressively low offer is more likely to offend than get the desired result – and then you will have a mountain to climb trying to win back goodwill. Some sellers will simply refuse to deal with you if you get off on the wrong foot.
A low offer can open the door to negotiation, but only if it’s handled in the right way. Rather than blatantly trying to exploit the fact that the property’s value has fallen and the seller’s back is against the wall, it’s far more effective to say, in a polite and genuine way: “This is as far as I can stretch and I appreciate it may not be what you’re looking for.” Nobody can argue with your personal financial circumstances or comfort level.
The strongest negotiating strategy isn’t simply putting in the lowest offer you think you can reasonably make and hoping for the best. It’s about understanding the person on the other side of the transaction, working out what’s motivating them and how committed they are to selling – then judging whether to act quickly, negotiate patiently and tactfully, or walk away.
