Doing well in property is all about buying well. When trying to get the best deal, it’s important not to get too attached to the property. This means you have the power to walk away and avoid potentially paying too much. Remember, this is a business deal. Here are some pointers for negotiations to secure the property at a fair price:
- Have a limit and stick to it
- Find out as much about the other party as possible. The more you know about the other party, the more negotiating power you have
- Try to have all information verified by a third party
- Don’t be afraid to ask for what you want, even if you think the vendor won’t consider it. You never know what they may accept.
- Ask the agent what the vendor needs. The vendor may be prepared to lower the price in return for an earlier or later settlement date, depending on their requirements. They may be committed elsewhere, or want a longer settlement while completing building of another home. Sometimes it can be surprising what the vendor will move on
- Have finance pre-approved. This may be a bargaining chip if the seller (vendor) does not have to wait quite so long
- When going into negotiations have a backup plan e.g. offerdifferent terms such as a longer or shorter settlement. This means you have options if the vendor does not accept your offer. Put the vendor under pressure to make a decision by adding an expiry date to your offer
- Give yourself room to move with clauses in the contract such as subject to building and pest, valuation or finance. This takes the property off the market while you conduct further research
Success in property is about buying a good property at a fair price. The key to negotiating is having confidence and the right information. If your terms are not accepted then maybe it’s best to walk away from the deal.
If you’ve found a good property and not sure what’s a fair price, contact us on 1300 302 581 for an independent valuation. We’re here to help.