Negotiating a suitable pre purchase inspection price is generally an art and a science. It requires you to you collect market data beforehand and use the best strategy when negotiating a great deal for your home.
Your negotiating strategy will be determined by a lot of factors but the most critical one will be the market you are operating in. If you are buying a home in a real estate market that is seeing lots of action and where the homes are scarce, you need to be cognizant of the fact that the sellers here will likely be receiving lots of great offers for their properties so a low-ball offer may not suffice. In such a market, you have to bid as close to the asking price as possible or even exceed it by a small percentage, typically in the range of 1% to 3%, to stand a chance of landing yourself the property.
On the contrary, if you are purchasing a home in a market where the sales are slow, you may have greater leeway in the price negotiations. Take time to go through the history of the property and see its sales history and whether the listing has had some price cuts in the recent past. If it has, you can always go a little lower. In this market, start your bids with a price that is 8% to 10% lower. Other tips on how to get the best deals on a new property purchase include the following.
Whatever the market you are targeting, always ensure that you are armed with the right facts. A real estate agent can carry out a thorough research on the recent home sales and get information from sellers to give you an edge in the home purchase. Research the neighborhood and know what homes in the area have sold for recently.
Also, make sure your finances are in order. This is especially so if you are planning to purchase the home in an auction. Know the buyer’s terms, the property inspection in Melbourne and other minor details about the property. Good preparation always puts you in a strong negotiating position.
Have a Clear Range
It is good to go into these transactions with a finite range on what you are willing to spend on the property. This not only streamlines the search process but it also ensures you don’t get carried away and go over the budget. The range is simply the price that you feel comfortable with, based on what you can afford without stretching your budget.
Don’t Be Impulsive
Don’t get carried away with the “shiny object syndrome” and pick a home based on some appealing aspect. Don’t be too emotional when buying a new home. This is an area where you will need all your wits with you. Adequate preparation is crucial. If you have done your homework well and have a definite range in mind, it is easy to keep your emotions in check.
Don’t underrate the importance of self confidence in property purchases. If your body language projects confidence and you look like someone who knows what they want, property sellers are unlikely to take advantage of you.