How to get the best deal on your dream property
When it comes to buying property, it doesn’t matter whether it’s your first or your fifth; you need to focus on getting the best possible deal. But negotiating isn’t something that comes easily to everyone. So in this post we’re going share some top tips on how to get organised and negotiate a better price.
Step 1: Get your finances in order
Before even looking at property, you need to know how much you can borrow and more importantly what you can actually afford.
Making an offer without first having organised your finances is an amateur move. It’s also pretty frustrating to have to beg for extensions because you took too long to get your information to your broker and now the finance expiry date has now lapsed.
Being a newbie is not a good enough excuse, if you are serious about buying a house then you need to be organised.
The first step is to change to a mortgage professional and get yourself pre-qualified, then and only then can you go shopping for properties. When you’re making an offer, you’ll hit the ground running if you’re already pre-qualified.
Step 2: Do your research
Knowing how long a property has been on the market and how many people are at the open house gives you great leverage.
If a property was only listed a few weeks ago and there are loads of people at the open house, it’s not going to last long. In a case like this you don’t want to insult the agent with a low offer when you see three groups submitting offer forms.
However if something has been on the market for over a month and you see there’s not much interest, it could mean a few things. Perhaps it’s just not that popular or maybe the price is too high.
This is a critical time, because the agent may soon suggest to their vendor that they reduce the price to attract different buyers. If you come in with an offer before they have to do that, they may be more inclined to take it.
Find out how long it’s been on the market, when it was last sold and for how much. Use a free website like On The House to find the property and you’ll be able to view both the listing and sold history.
Step 3: Do your research
How many times have you rocked up to an open only to find out it’s already under contract?
If you’ve done your research and know that this property is the one for you, don’t wait a week to actually go look at it. You could be overlooked because of all the other keen buyers in the room, call the agent now.
Make sure the agent knows how keen you are and try and book a private viewing. You might be able to get in before everyone else and get a better deal if both the agent and seller are motivated.
I’ve had many clients get low offers accepted on great properties before going to open or auction, but you won’t know unless you try!
Step 4: Ask tough questions
Real Estate agents work in the best interests of their client, so they’re not going to admit that their client is going through a bitter divorce and they just want it gone.
So here’s one important question you can ask:
‘Is the buyer more motivated by price or terms?’
Don’t worry, the agent will be impressed by your professionalism and, because they’re caught off guard, they’re more likely to divulge something useful like:
‘Well given the circumstances my clients would like it sold as quickly as possible.’ WIN!
Asking tough questions helps you gauge your offer and settle at a price that’s fair and gives everyone a quick settlement.
Step 5: Book an inspection
Booking a building inspection is a must in the property buying process.
But you might not realise that you can renegotiate the price even AFTER you’ve bought the property if something unexpected comes up during the inspection.
Don’t be afraid to go back and ask for a reduced price because the roof needs some serious repairs. Often the vendor will be aware of these issues, and feel obliged to counter negotiate because they don’t want to blind-sight you.
Get yourself a better deal
Using these five simple property negotiation tips could save you thousands on your next property, helping you find the perfect home for less. If you’d like to speak to one of our friendly mortgage brokers about anything to do with property or mortgages please get in touch.
Over to you
Did you use any of these tactics to negotiate your house price? If so we’d love to hear in the comments below. Oh and if you liked this article please share: