Negotiation: a normal step, not a fight
Negotiating the price of a house is a common and legitimate practice. In Belgium, the gap between asking price and sale price varies with the market, the condition of the property and the seller's motivation. On some properties, the room for negotiation is close to zero. On others, it can amount to several per cent of the asking price.
Negotiation is not a fight. It is an exchange between two parties seeking an agreement. A respectful, well-argued approach is always more effective than an aggressive stance.
Prepare before you negotiate
Know the market
Before making an offer below the asking price, you need to know whether that price is realistic. Compare the property with similar recent sales in the same area. If the asking price is in line with the market, the room for negotiation will be limited. If the property is overpriced, you have solid arguments.
Identify the property's weak points
A poor EPB rating, a non-compliant electrical installation, works to be planned, a less ideal location than comparable properties: these are legitimate negotiating arguments. They must be factual and documented, not subjective.
Gauge the seller's motivation
A seller under pressure to sell (job relocation, inheritance, a purchase already committed) is more open to negotiation than a seller who can wait. This information is not always available, but it may come through during viewings or exchanges with the agency.
The arguments that work
The most effective negotiating arguments are those that are objective and verifiable:
- The EPB rating: a property rated F or G implies future works. It is an argument you can put a figure on.
- A failed electrical inspection: the cost of bringing the installation up to standard can be estimated.
- Works identified during the viewing: roof, heating, window frames. Backed by quotes, the argument is solid.
- Recent comparable sales at a lower price: this is the strongest argument.
Subjective arguments (I do not like the decor, the garden is too small) are less effective. The seller will not accept them as reasons to lower the price.
How much should you negotiate?
There is no universal rule. In the Province of Liège, in the high-quality residential segment, the room for negotiation is generally limited on well-positioned properties. An offer that is too low can offend the seller and jeopardise the relationship.
A reasonable approach is to make an offer that reflects the property's real value, taking into account the objective factors identified. If the asking price is fair, a slightly lower offer (2 to 5%) is often accepted or leads to a counter-offer. If the property is overpriced, a lower offer may be justified, provided it is well argued.
Know when to stop
Negotiation has its limits. If the seller will not move and the asking price is in line with the market, you must decide: accept the price or move on. Persisting with a negotiation that is going nowhere wastes time and can cost you the property.
Conversely, if you have solid arguments and the seller refuses any discussion, that may be a signal. A seller who will not hear objective arguments may also be difficult to deal with on other aspects of the transaction.
The agency's role in the negotiation
The agency representing the seller is there to defend the seller's interests. But a good agency also knows that a transaction that goes through is in the interest of all parties. It can act as a facilitator in the negotiation, helping both sides reach a reasonable agreement.
YOUHOME supports buyers in their search and advises them on the offer strategy suited to each property and each market situation.
