Navigating the property market represents one of life's most significant financial and emotional journeys, combining excitement with considerable stress. For prospective homeowners across the UK, avoiding unnecessary expenses and maintaining a strong negotiating stance can prove crucial to securing a favourable deal.
The Critical Pitfall During Property Offers
According to David Sampson, a mortgage specialist from HMO Mortgage Broker, home buyers frequently undermine their own bargaining position by complying with a specific request from some estate agents during the offer stage. This seemingly innocuous step can have substantial financial consequences.
Why This Conversation Can Disadvantage Buyers
When submitting an offer on a property, buyers might be asked to have a preliminary conversation with the estate agent or their recommended mortgage broker before their bid progresses. David Sampson warns that this practice can significantly disadvantage buyers during subsequent price negotiations.
"Estate agents work exclusively for the seller, not the buyer," explains Sampson. "Their primary objective is achieving the highest possible sale price. Knowing exactly how much a buyer can afford fundamentally influences negotiation dynamics."
He provides a concrete example: "If an agent discovers you can afford £300,000, but you're offering £290,000 or below the asking price, that information doesn't serve your interests. It signals to the seller that there's room to push for more, even if you have no intention of increasing your offer."
Protecting Your Negotiating Position
Sampson emphasises that buyers have clear rights and alternatives: "You aren't obligated to use the estate agent's recommended broker. You're perfectly entitled to engage your own independent mortgage broker and obtain your own decision in principle."
The mortgage specialist further clarifies the risks: "Presenting a mortgage in principle that reveals you can afford more than your offer suggests will likely trigger immediate counteroffers. These incremental increases can accumulate rapidly, substantially inflating your final purchase price."
He concludes with practical advice: "Utilising your own broker and submitting a decision in principle that doesn't disclose your maximum affordability can make a meaningful, tangible difference when purchasing your home. It preserves your negotiating leverage and prevents unnecessary price escalation."
This expert insight highlights how strategic financial disclosure management during the offer process represents a critical component of successful property acquisition, potentially saving buyers thousands of pounds while strengthening their bargaining position throughout negotiations.
