Top tips for saving thousands on your first home
It’s no secret that first time buyers are experiencing a difficult time in the property market, with rising house prices and a lack of affordable homes contributing to the growing problem. New research from Barclays Mortgages has revealed how 51% of those buying for the first time over the last five years regret not negotiating.
With 40% not considering themselves good negotiators - and admit that their parents are better trained in the art – Peter Brooks, Head of Behavioural Finance at Barclays, has compiled a list of top tips for the all-important first purchase:
1. Do your research – There are many online tools available that allow prospective buyers to see the average selling prices, school catchment areas and crime rates in the local area. Buyers should always do their research and use this knowledge as negotiation ammunition.
2. Be optimistic but always be willing to walk away – A positive attitude will help engage your counterpart and encourage them to work with you to find a deal, but don’t pin all your hopes on just one property despite the temptation to become attached to a particular property – there are plenty more opportunities out there if this one doesn’t go to plan.
3. If at first you don’t succeed, try, try again – Don’t feel defeated if you are unable to negotiate on the offer price. Your initial offer isn’t your only opportunity to negotiate: have a professional survey done on the property as it might find issues that need addressing and for which you can use to negotiate the final sale price.
The biggest mistake many first time buyers make is to rush into decisions and then panic once they have been made. Always remember to balance your approach and referring to informed and independent advice will allow for a smoother negotiating process for all parties
Head of Behavioural Finance
Brooks continued saying: “Buying a property is the biggest investment of most people’s lives and it’s imperative that the negotiation process is approached with a healthy combination of pragmatism and fearlessness.
“The biggest mistake many first time buyers make is to rush into decisions and then panic once they have been made. Always remember to balance your approach and referring to informed and independent advice will allow for a smoother negotiating process for all parties.”
Barclays current range of innovative mortgages for First Time Buyers include the Barclays Homebuyer Cashback Mortgage and the Family Springboard Mortgage. Find out more.