5 Negotiation Tips When Buying a Property Aug 17, 2021 | Commercial Property Loan Most people will only ever buy one or two homes over the course of their lives, which means you don’t always get much practice at the skills of negotiation. When you are buying a home, you will often find yourself dealing with a sales agent who is a professional negotiator. Here are some ways you can improve your position when the time comes to negotiate. Substantiate your Offer Most sales agents and valuers will price a property based on the method known as comparable sales. What this means is that they will use similar types of properties that have sold recently as a gauge to value your property or the one you’re interested in buying. The good thing is that you can do this same research ahead of time to get a clear understanding of what a property is worth, and you can take this evidence to the sales agent when the time comes to make an offer or negotiate. Look at similar properties, in terms of age and land component in the same suburb, that have sold in the past six months. This will give you a good understanding of what the property is realistically worth and will help dramatically with your negotiation. Get Pre-Approved One of the most important aspects of buying a property is knowing not just what you can spend but how much you can borrow. Getting a pre-approval with the help of a mortgage broker will not only give you clarity around what that number is but can also be used as a negotiating tool. If you really want a property, but you have reached your ceiling, tell that to the sales agent. If they have no competing offers, they will likely communicate this to the vendor to broker a deal. Understand the Seller’s Motivations Arguably, the most important part of a negotiation is knowing why the vendor is selling. You should do everything you can to find out why they are selling, including questioning the sales agent. The more information you have, the stronger your position will be. If a vendor is unwilling to negotiate on price, perhaps you can get more favourable terms or vice versa. If a seller needs to sell quickly for personal reasons, a low offer with short settlement terms can be very appealing. Use your Building and Pest Inspection Report It’s important to understand that the offer you submit to a vendor is not finalised until the terms are also met. If you make an offer subject to a building and pest inspection and it comes back less than satisfactorily, that doesn’t mean you have to walk away. In fact, you’re well within your rights to go back and negotiate a lower purchase price, factoring in any repairs that are required and the inconvenience. Why YFA? Our motto has always been “Honesty” and Over 20 years, we have always believed that understanding the customer requirement should be the first priority. We are very passionate about helping individuals and families to identify financial goals with the correct focus on their plans for the long run through our finance broker in Sydney. We feel proud and blessed to win awards because of successfully assisting people to achieve financial success. What makes us stand out from others is the utmost trust from our clients who have trusted us. We have always aim to provide updated yet useful blogs by adhering to traditional values of transparency and integrity, while continuing to bring steady and consistent performance over the long term. Our home loan advisor is always there to assist you. We love going beyond the bolts of financial crisis in an easier manner just to help people believe that money never blocks their happiness. Contact Rohit Khatak Mortgage Broker Hunters Hill, NSW try to the best of our abilities to be a sane and trusted entity in the sector of Wealth Management via providing services in Finance & Insurance. Credit Rep Number – 418883 | ABN – 8119516623 Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.