6 TIPS TO NEGOTIATE LIKE A PRO
An important part of buying a home is negotiating its price. Having good negotiation skills will help you get a home for a good price in a short amount of time. Here are some tips that can help boost your negotiation power:
1. Stock up on knowledge.
Making an offer on a property needs a lot more than emotion. Work out how much a property is really worth by doing research. These factors are also important to look into:
- Look through similar properties in the area and compare them—the features, condition, price, etc.
- Do research on the sale prices of the similar properties recently sold nearby.
- Look at the property market trends and climate.
Knowing these factors can give you the upper hand and put you ahead of other buyers. This will give you a more accurate idea of the property’s value and your offer will be less likely to be dismissed.
2. Get a buyer’s agent.
The thing about buying a home is that you’ll have to deal with real estate agents. While they may be helpful to you, remember that they’re working for the sellers, not you. They will put the seller’s best interests first before yours, so that’s why you might consider getting a buyer’s agent.
A buyer’s agent can help you with negotiations and the other matters in the buying process such as paperwork and inspections. Aside from that, you will be sure that they will prioritise your interests.
3. Consider the seller’s needs.
A successful negotiation only happens when the two parties involved come to a mutual agreement. This is why you should also consider and understand the seller’s needs.
Even though the price is an important consideration for sellers, there can be other things the seller's need or priorities to agree to a sale. For example, they might want a rent back period or a longer settlement; and you’ll only know that if you ask.
Here are some questions you can ask the agent or the sellers:
- Why is the vendor selling?
- How long has the property been for sale?
- Is the vendor looking for a quick sale?
- How much is the price the vendor expects? Is there room to negotiate?
- Does the property have issues such as pest or building problems?
Knowing the answers to these questions can explain the seller’s motivations and give you leverage in your offer.
4. Stick to your budget.
It’s important that you figure out your budget before you look for houses. Speak with an accountant so that you can work where your finances are at. Also, make sure to ask a mortgage broker so that you know your borrowing capacity.
Once you figure your budget out and start looking for houses, keep that budget in mind. If your dream property is way out of your budget, just look for another one.
When you find a nice property you like, you might want to offer less than your maximum budget. This way, you will have some allowance if the seller wants to negotiate or will help you save money if they don’t.
Offering an amount near your price limit might make the seller think you have more money to spare. On the other hand, offering an amount too much lower than the asking price will just make the seller think you aren't serious.
5. Head over the heart.
Keep calm and collected in negotiations. It’s best if you remove emotion in your decision making. Don’t get too attached to a property. If it’s too expensive or taken by another buyer, keep in mind that there are other properties out there that fit your criteria—you just have to keep looking.
6. Make your offer irresistible.
A good way to do this is to include special conditions such as waiving the cooling off period or making the settlement longer or shorter, depending on the seller. This is where knowing the seller’s needs comes in.
Another thing is the loan pre-approval. Showing that you already have your loan pre-approved can increase the seller’s willingness to sell the home to you.
Doing these will help you achieve your end game and get you the right home for you. Good luck with your house hunting! If you need more help or advice, you can always send us a message.
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