Planning on making the big move and securing the home of your dreams? Great news! However, if you can’t stand missing out and don’t have the flexibility to overpay, negotiation is going to be your best friend.
Being able to negotiate effectively takes confidence, but there’s a whole lot more to it, too. Once you’ve got some background and have harnessed the 5 tips in this article, you’ll be ready to secure the deal in no time. Read on to find out more.
If you need to get a home loan to buy your property, you should sort out your pre-approval before you make an offer. This is especially relevant if you’re buying at auction, as the offers you make within the auction house are unconditional, meaning you’ll need to have the funds before settlement day.
Even if you’re putting a private offer in on a property, you should know what the bank is willing to lend you before moving forward.
Do Your Due Diligence
Regardless of whether you’re going through auction or best offer, you need to make sure you’ve done your research. Knowing the true value of the property you’re looking to buy can save you thousands.
Take a look at similar types of property that have recently sold in the area, as well as the discount that was taken from the asking price.
Before jumping straight in with an offer on the property, take a look at as many similar properties as possible.
The selling agent will largely be working for the vendor, but they’re also the middlemen on the deal. As a result, if you can show you’re a trustworthy buyer and you’re heading into negotiations with good faith, they’ll likely relay this.
This works heavily in your favour, as the other party will be much more likely to negotiate with you if they don’t think you’re playing games.
Be Genuine with Your Offer
It’s commonly thought that throwing a low-ball offer than gradually increasing the price is the best way to go, but it doesn’t always work to your advantage. Sellers almost always reject low offers, and if you seriously low-ball them, you run the risk of offending them and damaging the buyer-seller relationship.
If you’re in a position to do so, don’t be afraid of putting your big offer on the table first. Make it clear with the selling agent that this is what you’re doing, so they don’t try and move you up on it. As long as they understand this, they could well be much more inclined to accept quickly.
Rely on Conditions as Your Bargaining Leverage
The main purchase price is understandably the primary concern of most buyers, but it shouldn’t be the only one. For example, if you make the contract unconditional, the seller may well be likely to accept a slightly lower price.
Some vendors want to settle on their property fast, whilst others might be willing to rent back their property whilst they look for somewhere else to live. In this situation, speak with the selling agent, as they’ll be able to give you insight into the vendor’s motivations. If you can help them to meet their extra requirements, it could end up knocking a few digits off the price.
Swagger and bluffing might be what you see in the movies, but that’s not what real estate negotiations are about. Head into them in good faith, be honest with your offers and bargain with the conditions of the contract. It’ll pay off in the end.
The information and links provided on this website are for general information only and should not be taken as constituting professional advice. This information does not take into account the financial situation or particular needs of individual readers. Before making any decisions about matters discussed on this website, you should consider whether it is suitable for you in light of your own circumstances, and seek appropriate advice.