Negotiating the right purchase price is a crucial part of buying any property. Nobody wants to pay more for a property than they should. It’s a balancing act between making an offer the seller will accept and not offering more than you need to pay.
Here are our top tips to avoid overpaying for any property.
Tip 1: Take any emotion out of making your offer
This can be hard to do, especially on a property that you have your heart set on. But your offer needs to be based on what the property is worth, not on how much you want it. Emotion-based offers tend to result in buyers paying too much for properties.
Tip 2: Get an independent, professional property valuation done
This will cost a few hundred dollars, but it can save you far more than that. If you get a property valuation done before you make your offer, it will help you avoid offering too much.
Tip 3: Get building and pest inspections done before you make your offer
This can give you negotiating power to make a lower offer that’s based on cold, hard facts. It will help you to factor in the costs of any necessary repairs or maintenance that a property needs.
Many buyers get these inspections done after they make their offer to buy a property, which affects their subsequent negotiating power.
Tip 4: Make a time-based offer
Don’t give a seller unlimited time to respond to an offer. This just gives them time to find other buyers. Instead, present a reasonable offer with a deadline for acceptance (for example, by 9am the next business day).
You should also avoid making an offer on a Friday afternoon as it gives the seller and their real estate agent time to find another buyer on the weekend. Weekends are traditionally a more active time in real estate with open homes and inspections.
Tip 5: Hire a buyer’s agent
Real estate agents act on behalf of sellers. They try to get the highest possible price a buyer will pay for a property.
Buyer’s agents on the other hand act on behalf of buyers. They negotiate with real estate agents for a living. Their goal is to get the lowest possible selling price for their clients. They negotiate unemotionally and they know all the negotiating tactics that real estate agents and sellers use.
A buyer’s agent’s fee should be more than offset by getting you a lower price on a property than you could negotiate yourself.
Our experienced and licensed brokers at Wisebuy Investment Group can help you to find the right home or investment property loan for your needs. We can also help you with your loan application.
We service a diverse range of clients in Newcastle, Lake Macquarie and Maitland, and our mortgage brokers Newcastle work with more than 60 lenders in the Australian market.
Contact us today for an obligation-free chat. We’d be happy to answer any questions you have.