Debbie Shankar - 26 May, 2015

Property Price Negotiation: How to Hold the Power

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The better you’ve organised yourself prior to buying a property, the greater your negotiation power. This means that you may save yourself thousands because you’re ready to buy now, rather than later.

Key Price Negotiation Factors

Key price negotiation factors are as follows:

•  Get Home Loan Pre-approval: Having pre-approval allows you to know exactly how much you can borrow, reduces home loan waiting times and saves you from disappointment. It also tells the vendor of a property that you’re a serious buyer who’s in the market.

•  Have professionals organised: Have a solicitor or conveyancer, a building inspector and pest inspection agent on-hand so that you can put your team to work as soon as you’ve found the right property.

•  Keep Your enthusiasm to a minimum: If you’ve found a property you love, keep your enthusiasm in check. Negotiating a price on a property is far easier if the selling agent doesn’t know how much you like the property.

•  Give yourself room to move: The sale price of a property is usually 5-10 percent higher than a vendor is willing to take. If you feel the property is fairly priced then make your offer 15 percent less than the asking price, then negotiate.

•  Make your terms and conditions clear: All home sale contracts, apart from cash buys, should be subject to finance. Even if you have home loan pre-approval your lender still needs to value the property and agree to lend you money. If you think the property needs painting, rubbish removed or to have a pest and building inspection carried out, then add these to your terms and conditions. Just remember the more terms and conditions, the less negotiation power you have.

Are you looking to buy a home? If so then contact eChoice. We can help you save time and money.

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