Master your next property negotiations with these essential tricks and advice that can help tip the balance of power in your favour!
1: Understand the market
There is nothing more important than research.
Research is key to getting the best prices and conditions. It allows you to negotiate with knowledge on your side.
Spend a few months attending inspections and compare advertised prices to eventual sales prices, so you fully understand what a variety of property types are selling for in the market.
At the end of the day, the more you know and understand a suburb’s price points, the better equipped you are to spot a bargain and be able to talk down the price.
2: Know the property’s value – and the highest amount you can offer
In much the same way, it’s important that you understand a property’s value before you walk through the front door.
It’s a good idea to research comparable properties on the market, and be armed with that information during sales negotiations.
In addition, you need to know exactly how much you’re going to spend on the property based on its value.
Always stick to the limit! When buyers allow emotions to fuel their purchase price limit, they can end up biting off more than they can chew.
3: Understand that selling agents aren’t on your side
Selling agents are employed by the vendor, and will be pushing hard to get the highest possible price.
Always be careful of the information you disclose! Behave ethically, but don’t give them ammunition they can use against you.
4: Give them an offer they can’t refuse
Property negotiations don’t always come down to price.
Often times, you can add more muscle to your negotiations by including conditions that makes your offer more attractive.
If you present an offer that solves a vendor’s problems, such as setting a settlement date that suits them, you have a better chance of sealing the deal or being able to settle on a better price.
5: Don’t panic and make snap decisions
This is a common trap that many buyers fall into when they’re pressed for time or worried about other bidders.
A hot market is going to see competition. Don’t be afraid to let a deal go.
If you’ve done your research and you approach the negotiations with a clear head, you’ll know when it’s time to walk away.
Snap-decision panic buying can lead to long months or years of regret.
6: Get your finances sorted
Pre-approval can give you a competitive edge and more power to master your property negotiations.
A seller who knows you won’t pull out because of financial issues will find your offer more attractive.
Similarly, make sure you’re ready with your financial team so you can move quickly when necessary. Being prepared reduces the risk of being rejected for a loan and missing out on a property.
7: Be confident and assertive
Be self-assured in your dealings with the agent and seller.
If you know the market, have a maximum amount you’re willing to pay, and you have special terms that might help you achieve a lower price, go ahead and negotiate.
At worst, you move on to the next property.
At best, you score a great deal and you’re even better equipped to negotiate the next time round.
