Congratulations! You’ve found the house that you want to buy. The hard part comes: getting it for a good price and closing the deal. This article walks you through the steps of negotiating property prices so that you can save some cash and get into your new home faster.
Research the market
Before you start negotiating, it’s important to know the property’s market value. To achieve this, you can phone an agent and ask them to offer a list of recent sales in that region or conduct an online search for comparable properties in the same neighbourhood. This will give you an idea of what other buyers have paid for similar houses, which helps when it comes to negotiating with sellers.
The next step is researching any nearby competing properties—including new developments and resale properties. Comparing prices between similar homes can help paint a picture of what price points are reasonable and what you’re willing to pay.
Get your finances in order
To be at a point of submitting an offer on the house, you need to have your finances in order first.
Have pre-approval from a lender before viewing the house. A lender will assess your income and the amount of debt you have to determine whether or not they’ll approve your loan. They then provide you with pre-approval documents that outline the size of the home loan they are willing to lend and at what rate.
Nowadays, this can be done quickly and easily online with an offer in principle delivered to your email address moments after completion.
Be prepared to act fast
Preparing to make an offer on the house is a tricky endeavour. An agent may not be able to give you the information you need immediately, or they may have multiple clients interested in seeing the house. To avoid being left in limbo, you must be prepared to make an offer quickly if interested.
The most effective method for ensuring you’re ready is to prepare all your documentation in advance. Therefore, when the time comes for negotiation, all parties involved will be able to move quickly and efficiently. This way, nothing will stand between you and making an offer.
Make your offer in writing
Make sure your offer is in writing. If you initially make your offer face-to-face or by phone call, back it up with an email. Make sure it is crystal clear, concise, and simple to read. Ensure there are no spelling errors and that the purchase price is written fully in both words and numbers to avoid any confusion.
If a seller wants to see a written offer, it’s important that they can read through it without difficulty, so make sure you keep things simple and understandable.
Consider a counteroffer
A counteroffer may be appropriate if you believe the seller is asking for too much.
To make sure that your counteroffer is reasonable and can be considered by the seller, it’s best if you follow these steps:
Write down everything about your new offer. Include why you’re countering and what you think would be fair for both parties.
Be prepared for the seller’s response. It might not go exactly as planned—which is okay because you’ll have more information on what they’re looking for, which will help if you plan to make another offer.
Don’t get emotional about It
Don’t get emotional about it. As you’re negotiating with the home seller, try to view this as a business transaction, not an emotional one. Getting angry or frustrated could hurt your case, so stay calm and composed.
If they reject your offer, don’t take it personally—be friendly and move on to another house that may be better suited for you and your family.
Be prepared to walk away. This will be the largest purchase of your life and if it’s not right, it’s not right.
How to negotiate property price
To recap, negotiating property prices is something most people end up doing at some point in their lives. So if you’re hoping to make an offer on the house, it’s important to understand how to negotiate the property price so that both parties are happy with the outcome.
Investigate the market value of comparable houses in the area as a starting point before making an offer on the house. This will give you a rough notion of the price range that would be fair to the seller while allowing for a negotiating window.
Once you have done the required research and chosen the right property for your needs, it’s time to make an offer! It’s important not only to think carefully about what kind of condition the home is in but also how much work may need to be done . to set a reasonable price you’re willing to pay.
So, there you have it! The basics of how to negotiate property price. It may seem daunting initially, but with some research and strategy, you could save yourself money. We hope that this write-up was useful in getting you started on the path towards purchasing a property. Good luck out there!
Writer : Millie Fuller