Property purchase is an art that needs a strategy, finesse, and deep knowledge of the market. Even if it’s the first purchase of a home or it’s the one-hundredth deal for a savvy investor, these negotiation techniques are what may change everything and deliver that dream home on the best of deals. Usually, the purchase price is the most important aspect of any real estate transaction. For the investor who is seeking profit-making investments, it matters, but so does it for someone just buying a house. The list usually contains a price asking; however, it is not binding. If the property of interest appears too costly, there’s no harm in negotiating it down. It is thus important to seek reliable property conveyancing services that will see you through this process. Professionals ensure that the legal and financial implications of your buying are smooth enough for you to focus and negotiate with confidence. The dream may well be closer than you think.
Prepare Yourself
Preparation is the magic key to confident negotiation. First of all, organise your finances. Exactly know what you can afford. Approach your bank or mortgage broker and ask to get pre-approved. In that way, you will not take much time to make an offer once you like something. That has to happen before you start to go around houses. It may look silly when negotiating, but clarity about finances means a great boost in confidence.
Research the Property Market Rate
It is in your best interest if you know your way around, especially in bargaining. Familiarise yourself with the property market as well as your target house of desire. Understand its real value and why the seller needs to sell. Establish a good rapport with the real estate agent. Ask the seller what his requirements are. Is he in a hurry to sell? Has he already bought another property? Does he have a preferred buyer profile? Use tools such as Domain’s home price guide to determine the value and rental potential of the property. Discuss the trends in the area with your mortgage broker. However, not mentioning your maximum price during these discussions can undermine your bargaining power.
Make a Compelling Offer to the Vendor
Sellers want to get the highest price possible, especially at auctions. To avoid an auction, make an attractive pre-auction offer. Tailor your approach to the seller’s motivation. Some sellers prefer quick sales due to commitments elsewhere, while others may value a buyer who respects the property. Make sure the finance is already pre-approved, inspections are carried out, and legal checks have been done. Present a serious offer, hopefully with a cheque for the deposit. This acts as an indication of commitment and will motivate the agent to call the seller. If the seller rejects your first price, raise it incrementally but not more than your maximum. For auctioned properties, try an offer that takes effect the night before. Offer to waive the cooling-off period. Often, a seller will take the sure thing rather than chance the uncertainty of auction day.
Go to the Auction with Confidence
If you can’t secure the property before an auction, make sure that you are prepared for an auction. Go to a few auctions beforehand so you understand the process. Prepare your finances, inspections and legal documents beforehand. Set a budget and stick to it. Don’t let emotions guide your decisions. In case you fear overbidding, take a friend or family member along to do the bidding for you. This way, you will not get carried away and end up overextending yourself economically.
Leverage Negotiation Points
Negotiation is a give-and-take process. Be flexible about settlement terms, deposit amounts, or conditions for vacant possession. Even minor details, such as including or excluding fixtures, can swing a deal in your favour. For private treaty sales, discuss and negotiate the cooling-off period. Waiving or reducing this can make your offer more attractive to the sellers. Just be sure of your purchase decision before doing that.
Control Emotions
Buying a property is a huge decision, but emotions cloud judgment. Detach yourself emotionally from the property. Be ready to walk away if the price exceeds your limit. Sellers might have firm expectations that do not resonate well with yours, and that is just okay. Remember, the market is enormous, and there is always another property that may suit your needs better. Acting composed and indifferent during negotiations often helps you maintain control and achieve a favourable outcome.
Also, read: 7 Real Estate Investment Tips Every Investor Should Know
