Get the upper hand in negotiating a great property price with some tips for sealing the deal
You’ve got your loan arranged and the perfect property in your sights. Now it’s time to get smart about negotiation and use some simple strategies to buy your new home for the right price.
Know what’s happening in the market
While you’ve been shopping around for a home, you’ve probably gained a fairly good understanding of what’s going on in your local real estate market. And if you haven’t, it’s worth doing your homework before making your first offer. If you know what similar properties have been selling for, and how long they’ve been on the market, you’ll know how much bargaining power you’re likely to have and where to pitch your first offer.
If you don’t have time for research and want to offer a realistic price, consider getting a buyers’ agent involved. They’re experts in price negotiation and will have a good sense of what your chosen property is worth in the current market.
Be ready to buy
If you can show the selling agent that you’re fully prepared, then they’re going to take your offer seriously. Approaching the negotiating table with finance pre-approval in place and ready to cut a check for the deposit will make sure you get their attention.
Know what the seller wants
Of course every seller wants the best price they can get for their property. But there may be other incentives that could encourage them to accept your offer, like a shorter settlement period. Ask the agent questions about the seller’s circumstances and preferences for making a sale. The more information you have, the better your chances of making a successful offer with the right price and terms.
Know what to expect from the selling agent
Agents are paid by the seller so they’re going to act in their interests to get the highest price possible. To do this, they’re likely to give the impression that you’re just one of many interested buyers. You can play them at their own game by convincing them that this is also the case for you and your property search.
Don’t give away how much you want to buy this particular home. Be sure to tell them you’re looking at many other properties in great locations and you could change your preference at any moment and take your money elsewhere. Make your first offer high enough to be taken seriously, but not so high that you don’t have anything left in reserve. And always make it a written offer, with any terms included in your letter or email.
Be ready to counter
Selling agents aren’t obliged to tell you if your offer has been matched or beaten, but chances are they will to try and get you to counter. If you have the budget and think the property is worth it, be quick and firm with your next offer. Make it a meaningful increase and be sure to sweeten the deal if you can, perhaps by offering to waive the cooling off period if your circumstances allow.
No matter how keen you are to make a property yours, stick to your budget. Speaking with an Aussie Broker before you make any offers will help you discover just what you can afford to borrow.
Are you getting ready to make an offer on a new home? Share your advice on negotiating in the comments below.