Majority of FTBs fear negotiation

Majority of FTBs fear negotiation
The biggest mistake many first time buyers make is to rush into decisions and then panic once they have been made

New research from Barclays has found that 52% of first time buyers have never negotiated and a further 53% admitted they fear missing out in the “extremely competitive” market if they were to negotiate.

The lender's analysis discovered that 51% of those who bought for the first time in the last five years regretted not negotiating prior to purchase. But 35% would still avoid negotiations given the small pool of affordable housing available.

Figures on property purchases made through Countrywide between April 2016 and April 2017 show that one in five (21%) British first time buyers paid over the asking price for their property, forking out on average an additional £7,758 to secure their chosen property.

Surprisingly in England and Wales it’s not Londoners but those in Yorkshire and Humber who proved to be the most likely to go over the asking price with almost a third, 29%, paying more than the initial selling price. In Scotland, the figure is even higher at 40% but this reflects the fact that properties are often purchased through the sealed bid system.

This comes as a huge 91% of first time buyers say there is not enough negotiating advice available from trusted sources. In fact, 30% have admitted to being confused by the limited information available and 42% are still leaning on their parents for negotiation advice.

Proving that not all first-time buyers are negotiation adverse, 55% said they feel comfortable negotiating through an estate agent if they haven't formed a relationship with the homeowner during a viewing.

Peter Brooks, Barclays Behavioural Finance expert, said: “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.”    

Craig Calder, Director of Barclays Mortgages, added: “Barclays Mortgages research shows that the fear of first time buyers missing out on their ideal property purchase contributes to 53% feeling unable to negotiate, with almost a third (31%) willing to be prepared to pay above the asking price.

We have helped over 3,500 first time buyers get on to the property ladder in 2017; and we understand the often-challenging process that all first time negotiators go through when purchasing.

Despite 85% of first time buyers describing the housing market as being “extremely competitive”, our tips on negotiating will help to provide the confidence needed to achieve the right purchase price.”

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Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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