Top tips for negotiating a property price
Published by MFAA
So you’ve found your dream home, but it’s in need of a little TLC. While others may see this as a deterrent, this is actually a great opportunity to nab the house of your dreams at a price tag that’s within your means. Here are our top tips to tactfully negotiate the price without ruining your chances of securing the property.
Tip #1: Never enter a negotiation empty-handed
People often underestimate how much repairs will cost, so even if it costs you extra, it’s worth getting all the information before making your offer.
Whether it’s hiring inspectors for a building and pest report, or obtaining quotes from tradespeople, obtaining facts and figures will give you ammunition when requesting a price reduction.
Tip #2: Separate your emotions
The most tactful way to negotiate is to eliminate all emotions. Try to separate yourself from the outcome and present your side logically.
The owner is under no obligation to accept what you offer, no matter how well you present your points. So if things don’t go your way, being negative won’t do you any favours.
Tip #3: Remember this is someone else’s house
Negotiation is a two-way street, so in order to come to an agreement, concessions will have to be made on both sides.
Try to understand what is important to the owner. Think about what you can offer to counteract the price reduction you’re after. Perhaps a longer settlement period so they can find a new home, it’s little enticements like this that can often be much more valuable than a couple of extra dollars.
Tip #4: If you don’t ask, the answer is always going to be no
From wanting certain fixtures included in the sale price, to extra inspection requests, you won’t know what the owners are happy to give if you don’t voice your desires.
A house that requires a bit of repair work, for example, is a great bargaining tool and generally an opportunity to secure a good price.
However, before you go wild with requests, think about what is most important to you, as realistically the owners aren’t likely to budge on everything.
For example, in theory, you can inspect a property as many times as you like. In practice though, it will depend on your agent’s availability and whether or not the owner is currently living in the property. You might put off the owner if you are constantly disrupting their day, so an alternative might be visiting the street at different times during the week. You don’t have to enter the actual home to get a vibe of what the neighbourhood is like.
With the advice of industry professionals, such as an MFAA Accredited Finance Broker, securing your dream home may be closer to a reality than you think.