A brand new study looking into the home-buying processes of Britons during the past two years has uncovered that the majority of first-time buyers in the UK secure their home for under the initial asking price, with haggling tactics, issues uncovered during home surveys and mortgage lenders valuing a property at less than an asking price revealed as some of the reasons for price cuts.
New research has revealed that first-time buyers in the North East and Wales knock the biggest values from the asking price of their properties, whilst those in London and Scotland are more likely to have to pay the asking price or higher.
The team at www.web-blinds.com polled 2,589 British homeowners aged 21 and over, all of whom had purchased their first property, either alone or as part of a couple, within the past 2 years. Participants were spread evenly across each of the twelve UK regions to see how the home-buying journey differs for first time purchasers in different areas of the UK.
All respondents taking part were initially asked to state if they bought their first home for more, less or the exact asking price originally set by the sellers. The vast majority (73%) had paid less than the property was originally on sale for, with a further 16% paying the asking price and 11% confessing they’d paid over the asking price to secure the sale.
Next, all those who’d paid less than the asking price were asked to reveal what they believed to be the biggest reason they secured a cheaper deal, with the most common answers as follows:
- The seller of my property required a quick sale – 18%
- The estate agent handling the sale encouraged me to offer under the asking price – 15%
- Issues found during home survey that prompted me to make a lower offer – 12%
- My mortgage lender valued the property at less than the asking price and wouldn’t lend me the full amount needed – 8%
- I was the ideal buyer for the property in terms of my finances/circumstances and haggled a lower price – 7%
When also asked to reveal the amount of money they’d shaved off the asking price through their negotiation processes with sellers, the average amount overall was revealed to be £5,304. The regional breakdown of these figures emerged as follows:
- North East – £7,350 (average amount of money first-time buyer was able to cut off asking price of property) – (5.9% of the average cost of North East properties)
- Wales – £7,150 (5.3% of the average cost of Wales properties)
- East of England – £6,950 (4.1% of the average cost of East of England properties)
- South West – £6,600 (3.3% of the average cost of South West properties)
- Northern Ireland – £6,250 (5.3% of the average cost of Northern Ireland properties)
- East Midlands – £5,550 (3.5% of the average cost of East Midlands properties)
- North West – £5,300 (3.6% of the average cost of North West properties)
- Yorkshire and Humberside – £5,100 (3.7% of the average cost of Yorkshire and Humberside properties)
- West Midlands – £4,950 (3% of the average cost of West Midlands properties)
- South East – £3,300 (1.2% of the average cost of South East properties)
- Scotland- £3,100 (2.2% of the average cost of South East properties)
- London – £2,100 (0.5% of the average cost of London properties)
Melissa Benedict, spokesperson for www.web-blinds.com, said:
“Buying your very first home is a daunting time regardless of your situation, with everyone obviously wanting to ensure the buying process is as smooth and bump-free as possible. Traditionally, many people have been advised to offer 10% under the asking price of a property, but with small homes and flats in high demand, this isn’t always a feasible option in many parts of the country.
“The fact that the average first time buyer in the past two years has cut around £5,500 off the cost of their homes will no doubt help to ensure lower monthly mortgage repayments and a bigger nest egg of savings should any unexpected but necessary costs arise in the future.”