When finding a house to buy, information helps you negotiate on price

A survey found nearly a third of first time buyers don't try to negotiate anything off the price at all. Yet they could save £1,000s, see below

One thing is certain in 2008. Negotiating power has shifted to buyers

If you have a mortgage and are ready to buy you're in a very strong position. But you need to know the market to gain max advantage.

Negotiate on price better - know your local market

Before finding a house to buy, gather market information on first time buyer homes. Assess how much you can knock off the asking price.

Spot owners who are keen to sell, most likely to negotiate
Find hidden value other homebuyers miss

Aways negotiate on price when finding a house to buy. First, know the facts

Estate agents will always be tough negotiators. Research the market, know your facts. It it will be clear to the selling agent

You are fully aware of your negotiating strength
You know the market and values. You will be realistic but won't overpay

Nearly a third of recent first time buyers had not tried offering anything less than the asking price a Bradford & Bingley survey found.

"They need to realise that without a property to sell they are in a strong bargaining position... and should use this to their advantage. It could save them thousands of pounds." Duncan Pownall, for Bradford & Bingley. (Survey 2005 but probably even more valid now).

Save money. Follow local prices. Spot sellers keen to do a deal

You need the facts about your market to negotiate better on price

Don't be too influenced by asking prices. Or by the agent saying you're offering too little.

Avoid overpaying - be wary of overpriced homes in a tough market for sellers. Some owners will ignore market reality. Their asking prices will be too high. Do your research and be ready to negotiate.

Sellers will have to negotiate in a tougher market. Look out for homes that have been sticking and for price reductions, esp more than 1 - see (Rightmove for market reports.

You need to judge when your offer is realistic. When to draw a line whilst retaining credibility as a genuine buyer.

And when to walk away to avoid overpaying.

Pitch your offer right and you can assume the agent will advise the seller to accept - or risk losing a realistic offer.

Conflicting headlines indicate one thing. Even "experts" are unsure of the future trend for prices

Some forecasts suggest large % falls. Most agree that long term prices will continue to rise, with increasing demand and too few homes being built. No one is sure when the present downturn will end.

Local research is always the most important factor in negotiating on price with agents. Many variables influence house prices.

Interest rates . Rises in interest rates could have a major impact.
Other outgoings are rising sharply, with more in the pipeline, including Council Tax and possibly even higher energy costs.
House price statistics can give confusing market signals because they only provide one snapshot view of the market in the selling/buying cycle.
Most sites report on past sales. Rightmove report current sellers' asking prices. These reflect sellers' expectations, not necessarily the price they will end up accepting. Following asking price trends and time taken to sell, will help you judge the state of the market. (Rightmove ).