Real Estate Negotiating Tips For Buyers When Purchasing Property

Glenn Batten | 7th October, 2009
Tagged: buyers, buying property, negotiate, negotiating, property, purchasing property, real estate, real estate tips, top tips | Make a Comment »

Real Estate Guide

Nerang First National has led thousands of property negotiations over just the past few years so we know a thing or two about the subject. We would like to share with you a few tips when buying your next property.

Selling or buying a property represents one of the biggest financial transactions a person will undertake, and achieving the right price can be one of the hardest and most stressful things to do.

Do it Quickly

The number one tip when negotiating is to do it quickly. Whether you are buying or selling a property, a protracted, drawn out negotiation process can cost thousands in the wash up.

Put the offer in writing

Real Estate Negotiating Tips For Buyers When Purchasing Property

Negotiating a Successful Property Sale

For buyers, a successful negotiation starts with an offer in writing first. Written offers are a sign of a stronger commitment by the purchaser to the property, and are harder for the vendor to disregard.

This commitment, evidenced by an actual contract, may be more attractive to the seller than other more lucrative offers. Talk is certainly cheap and sellers do not verbal offers very seriously a written offer and deposit cheque speaks volumes.

Minimise the conditions of the offer

Every condition you place on an offer is another hurdle to cross which causes the seller to doubt that settlement will ever actually happen.

Contract conditions like finance, building and pest inspections are expected by every seller but other conditions like subject to the sale of your existing property, early possession with rent prior to settlement or any of a myriad of other conditions are a potential negative to the seller and can spoil the negotiations.

Don’t ask the seller to do anything

If you are not happy with the lime green paint or shag pile carpet in a room then change it yourself once you own the place. Requesting the owner to repaint the room, or recarpet can only lead to disappointment as you may not be satisfied with the results.

Will the seller use high quality or the cheapest he can find? Will the seller employ a professional painter or just paint it himself? If work needs to be don’t to the property pay less for the property and get the work completed the way you want it done and be satisfied with the job.

Make offers as realistic as possible

If a property is priced correctly there is not always a lot of room for movement on price so unrealistic offers may only discredit your intentions and start negotiations off on the wrong foot.

Sure, there are some homes where sellers are unrealistic and are well overpriced to the market but if you have educated yourself on the prices for similar property just sold nearby you will only be negotiating on better valued homes. If you make an offer as realistic as possible from the start you will increase your chance at a successful outcome.

Don’t claim an offer is your final or best offer

Drawing a line in the sand about your offer only creates confrontations. If your best offer is not accepted and you are not prepared to pay any more then simply offer it again. The seller will quickly realise that this is all you can or are willing to pay for their property and they may give it further consideration.

Don’t ask for any extras

You may like some of the sellers personal items but don’t include it in your offer. Pool tables, outdoor furniture, ride on lawnmowers, bbq’s, furniture, fridges and many other personal items when added to an offer is another point the negotiations can fall over.

If you love something of the sellers, ask them they purchased it. If they are willing to sell it, they will often say so but keep any discussions on personal items outside of the real estate transaction and after the negotiations are finished.

Include a good deposit

Purchasing a half million dollar property on just a $100 deposit does not fill the seller with a sense of confidence about the offer. Offers should be as high as possible, ideally between 5 and 10% of the offer price can help tip the scales in your favour.

Come back and try again later

If negotiations falter and you don’t purchase the property but time has passed then give it another try. A period of time can often melt away barriers to negotiations that existed before.

We will discuss negotiating tips for sellers a little later but what are some of your tips for buying property?

Please leave a comment below to share what’s worked for you.