Most people are not very experienced when it comes to buying property with a strategy in place. The negotiation phase of purchasing property can be intimidating and overwhelming for many, and with our help as a buyer advocate with your best interests at heart, we have some great tips on negotiating so you can secure the property you want at the right price.
Look for a deal sweetener: find out as much as you can about the property you’re interested in, the circumstances of the sale and how much the seller really wants. Whether they need a quick settlement to move in to an already purchased property they’re moving overseas and need the cash set up somewhere else, or they’re experiencing family challenges that require a fast sale, this knowledge can reveal something crucial to help your negotiating strategy.
Cash is king: though it’s generally more common to borrow from a lender to buy a home, having a cash offer on the table can change the scenario completely. In order to do this, you need to have all your finances sorted out and quick access to the funds to make an offer you can follow through on, but offering cash means you can make a deposit on the spot, no bank red tape, and therefore less delay in settlement and the seller receiving the funds.
Go early and go hard: in competitive markets, bargaining is often less successful as the buyer with the highest offer is usually quickly successful. You may lose out by going too low and too slow. When the property is in high demand, do your research and go in with your best, strongest offer quickly. The seller may be so impressed and relieved not to have to drag out the sale that they accept and all other buyers are knocked out of the game.
Keep your budget to yourself: it’s wise not to reveal too much about what your budget limitations are too early on as it may mean the agent and seller of a property won’t consider any offers you present to them. Even when asked about what you think of a property, keep your cards close to your chest – if the home is too small, in need of a renovation or a serious aesthetic facelift, revealing that to the agent means they’ll know you’re going to offer a lower price to make up for the work you have to do later on.
No matter what sort of property you want to acquire, every situation is a strategic game you must play because when buying a property it’s a whole different ball game, one where hundreds of thousands of dollars are at play. Working with Bayside Real Estate Advocates to have a strong negotiation strategy in place ensures you’ll get the best price on the home you truly want.
