Purchasing or selling a home is most likely going to be one of the largest financial transactions you will ever perform. As a result, it’s essential that you are able to negotiate the best possible price when buying your next home. Below are a few great tips that will help ensure that you master the price and terms negotiation process.
Research the Housing Market Extensively
It’s simply not possible to determine how much a particular home is worth if you haven’t performed any research. This can be done by inspecting a few properties in the area that are similar to that which you are keen to purchase. It is important to see how much the similar properties have sold for over the past few months in the area that you will be buying or selling in. Being able to determine what the true and accurate value of a property is will enable you to have far more bargaining leverage when the time comes to engage in pricing negotiations.
Research the Property you want to Purchase
Not only is it essential to research the housing market; you should also do as much research as possible on the particular home that you would like to buy.
- This can be done by asking a few questions about the property such as:
- Are the sellers looking to sell as quickly as possible?
- Why is the property being sold?
- How long has the home been on the housing market for?
- Are there any known issues or problems with the property, such as pest issues or structural defects?
- What price is the seller expecting to get, and are they flexible in this regard or not?
Answers to all of these questions will have an effect on the motivation of the seller. For instance, a vendor who is looking for a fast sale may be willing to accept offers that are lower than their initial asking price.
Include Special Condition in your Offer to Purchase
When engaging in the negotiation process to obtain a property, it can be a good idea to include one or more special conditions that will help your offer stand out from the many others that will most likely be received. For instance, if the property owner is looking for a quick sale, you could let the estate agent know that you would be willing to finalise the settlement within a shortened time.
If you have made the effort to obtain home loan pre-approval and are able to put down a larger than requested deposit, you will also stand a higher chance of having your offer accepted. However, in this case, you would need to be able to put the deposit down immediately to secure the deal if your offer is accepted.
It is also recommended that you stick to your initial budget and have a pre-purchase and pest inspection performed on the property before signing any paperwork. If you would like ot find out more about how we can assist with the property inspection process, contact us today.
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