How To Negotiate The Perfect Purchase Price

You’ve found the perfect property, but can you get your perfect purchase price? Is the price on offer for that property a good deal? Is it too expensive or too cheap, or is it the perfect purchase price? How do you work out a good deal for that property?

Here are six tips for negotiating a purchase price and how to make that property sale work in your favour

1. Know that negotiation is a process

Acknowledging the reality that negotiation is a two-way street can help make the process less daunting.

Each party – the buyer and the seller – need to gain something from the transaction and feel happy with the outcome. So expect some give and take.

Putting yourself in the seller’s shoes can help you work out how to best play your hand. For example, why is the vendor selling? And how can you present the case around your offer, and best time it for a successful outcome?

2. Know the market

What you’re willing to pay for the property is only part of the equation.

Sale prices are determined by demand, and how much others in the market are willing to pay. Make sure you research current, comparable sale prices for similar homes in the same area before putting in an offer.

3. Be confident

Put any fears and any negativity to the side. A confident, positive attitude is key in any kind of negotiation.

4. Use An agent

In most cases, the seller will be using a real estate agent. So avoid the temptation of negotiating directly with the property’s seller, and always redirect back to the agent even if the seller contacts you directly.

The agent is an integral player in the negotiation process so make sure you are polite, professional, respectful and make a good first impression.

Open, clear communication is vital. Resist too much game playing. For instance, hiding your interest in a property can sometimes backfire, with an agent not taking you seriously as a buyer; conversely, don’t put all your cards on the table at once without thinking it through.

5. Know your limits

Real estate can be a very emotional purchase for many people. Always be aware of your upper purchase limit and stick to it. Never allow yourself to be caught up in emotion at sale.

Think carefully about how to present your offer – should you go in with your highest, best and final offer first up or present a lower offer allowing yourself room to negotiate up?

6. Think through low offers

You could make a ridiculously low offer for a property in the hope that the seller may be naïve, desperate or not know the true value of their property.

However, if you are genuine about the property, for the sake of saving time and potential heartache, it’s best to offer close to your expectations. The seller will either be interested in your offer or not and negotiations will conclude, or you will have the opportunity to move away before any emotional attachment overwhelms you.

If you make a legitimate low offer, inform the agent why your offer is low so they can communicate this to the seller. Reasons for making genuine low offers might be because some aspect of the property requires repair or renovation in order to make it more liveable for you.

realestate.com.au