Negotiating a property purchase is a serious business, so it’s important to be armed with as many tactics as possible to give yourself the advantage. If you’re in the market to buy a property this winter, here are our top tips to help you negotiate your property purchase like a professional and seal the deal.
GET YOUR FINANCES IN ORDER
Be clear about how much you can afford and get pre-approval from your bank or mortgage broker. If you know your ceiling, you will know your limit. And remember, price isn’t everything when it comes to a sale, often vendors are looking for a quick settlement with a buyer who has their finances in order.
RESEARCH YOUR OFFER
Robust comparable sales analysis and local market research will give you the best chance at securing a property for its true market value. This will enable you to prepare a thoroughly researched offer, which should also consider the unique features or defects of the property in question, giving you not only more credibility at the negotiating table.
DON’T LOW-BALL
Avoid making your first offer too low, as this could insult a seller and lead to them walking away. Instead, try to strike a fine balance between your goal of securing the property at the best price possible, while still offering a realistic market price unlikely to offend the seller.
BE CAREFUL WHAT YOU SAY
When negotiating, don’t make statements like “This is my highest offer,” or “This is the most that I can pay, take it or leave it,” unless strictly true.
If the seller doesn’t accept your offer, it is very difficult to convincingly go back to the table with a higher offer. This tactic can undermine any goodwill and trust you have built up in your negotiations with the vendor and their agent, making them suspicious of you.
BE PATIENT AND DON’T RUSH
A golden rule of negotiating is to avoid appearing desperate to do a deal. Once you’ve made an offer, be patient while you await the seller’s response. Don’t try to hurry the negotiations along too quickly, as this also sends a message that you’re over-eager.
LEAVE YOUR EMOTIONS AT THE DOOR
Negotiating can be a daunting prospect for buyers and sellers alike. No matter how stressful or intimidating the process is, it’s important to remember to leave your feelings at the door and apply pressure only if you are confident your terms are acceptable. Emotions and urgency can cost you a sale.
BE PREPARED TO COMPROMISE
Negotiation is all about give and take and price may not be the only thing on the table for discussion. Other areas for negotiation include the length of settlement, deposit, existing tenancy, and fixtures or inclusions – everything and anything can be up for discussion.
For assistance with starting your buying journey speak to your local Belle Property agent today, Carolyn Wheatley – 0407 120 483.
