Negotiating for a Property

Negotiating for a property must not be taken lightly, your chances of getting the best possible deal increase significantly when you arm yourself with sound knowledge and tactics.

So you’ve found ‘the one’. That property that ticks every box. You can picture yourself now, making that first cup of coffee in the kitchen.

Unfortunately, so can a few other homebuyers. It’s always important to polish your negotiation skills if you want to get an advantage – whether you’re buying through private sale or at auction.

Be ready to buy

DONT start looking or going to imspections until you have all your finances in order. Be clear about what you can afford before entering the negotiation, and speak with your bank or mortgage broker to get pre-approval.

Do your Reserach

Do your research into the property market, and the property you like. You need to understand the true value of the property, and what motivates the other parties also involved in the negotiation. Make sure this transparency only goes one way though. Don’t let the seller or their agent know your true maximum price – otherwise you might find you get pushed beyond your comfort zone.

Start by ask ing the agent about the seller’s requirements.
Why are they selling?
Have they already bought elsewhere?
Are they looking for a quick settlement?
Is there a particular type of buyer they would prefer to see in their home?

Make the vendors an offer they can’t refuse

Auctions are all about the vendor trying to get the best price. As the buyer, you ideally want to purchase without going to auction, so use your insights into the seller’s motivation to gain an advantage. Some sellers may be anxious that their property won’t attract the right bidders on the day. Others may be keen to sell quickly because they’ve already committed to their next home. Others may want to sell to someone who’s going to keep the home, rather than knock it down.

Start by making sure your finances are pre-approved, you’ve carried out your building and pest inspections, and your solicitor/conveyancer has checked the conditions of the contract of sale.

If the seller refuses your initial offer, make gradual increases, but never go beyond your limit!!

Be confident at the property auction

If you’ve been unable to secure the property before auction, but it’s the one you’re serious about then you will be oging tit he auction. Make sure don’t let this be your first auction, its important to have attended several auctions beforehand to get a sense of what to expect on the day. Make sure you have your finances, legal advice and inspections in order too.

Most important, dont let your heart to rule your head. You know your limit. Stick to it. If you don’t trust yourself, get a friend, family member or buyers advocate to bid for you.

Be prepared to know the terms of sale the seller wants, be prepared to waive certain things when negotiating your property purchase

Negotiation is all about give and take. Its nit alwys abiut the sale price but he terms of the sle. And there are a few things you may find it easy to give – in order to get the price you want. For example, you can negotiate how long settlement will take, how much of a deposit you will pay, conditions for existing tenants or vacant possession, and any fixtures or inclusions you do or don’t want. All of these things may be up for discussion – use them to your advantage if you can.

Take emotions out of property purchase

When purchasing a property, it’s vital you take your emotional attachment to the house out of the equation. You need to be able to walk away from a sale if the price is beyond your limit – whether it’s at auction or private treaty. Sometimes sellers have a set figure in mind and just won’t budge, and that’s OK – if it’s not meant to be, there will be another home that will suit you better.

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