How to negotiate purchase price

The year 2017 is quickly coming to an end, and with plenty of properties on the market now is the time to buy. December is usually characterised as a buyer’s market, with plenty of stock to choose from, making it more competitive for vendors. Buyers who have done their research and know their  market put themselves in good stead to negotiate and potentially secure themselves a great deal.

Negotiating is a huge part of securing your future home and here are some tips that will help you along the way:

  1. Understand the process: Before an auction there are some things you need to prepare in advance. Make sure you’re well aware of how the actual auction and buying process works, so you don’t get caught off guard. By having a good understanding of the property transaction process, you’ll not only feel more confident, but also show the agent that you know what you’re talking about, which puts you in a better place for negotiation.
  2. Know your budget: It pays to be organised, so have your finances sorted in advance, including a clear understanding of what your limit is. Don’t forget that you have to be realistic and negotiate within a price range that won’t turn your life upside down. If the property exceeds your limit, you might have to let it go.
  3. Do your homework: There are plenty of considerations and decisions to make when it comes to buying a property, including determining what the property is really worth. Before attending an auction you need to have done your homework. If you want to make a well-informed purchase that will benefit you in the long run, you need to have a solid understanding of prices in the area, specifically for comparable properties. If you are unsure, don’t hesitate to seek independent advice from a professional with  strong knowledge of the market you are looking to buy in. This will help you make a well-informed and confident  decision.
  4. Have a “Plan B”: We all know that sometimes things don’t turn out as you had hoped. There’s no guarantee that a property will sell under the hammer on auction day. It’s  crucial, therefore, to be well-organised and have a plan B to negotiate if  the property were to pass in. This is assuming you secured the right to negotiate after a pass-in by being the highest bidder.
  5. Don’t get emotional: Well, it’s okay to get emotional about a property. It’s an emotional thing when you feel a a special connection as you take that first step through the front door,the hairs stand up on the back of your neck and you just feel like you’re home. Just don’t get emotional about the price. At an auction, you have to put your emotions aside and not let them drive the bidding. If you’ve done your research, you know what your limit is and what the property is really worth.
  6. Be confident: One of the most important things during an auction is to appear confident. And preparation leads to confidence. Real estate agents are professional negotiators and the better prepared you are, the more confident you will feel about going up against them. Bidding at auction can be quite daunting, so if you’re still unsure the best advice is to seek advice. Get in touch with one of our PropertyDuo associates who know the rules of the game and can negotiate on your behalf to help you secure the property you want.

PropertyDuo is a solutions driven property advisory service that is underpinned by WBP Group’s 25 year history, experience, data and risk analytics.

Getting independent advice is the best way to have a game plan and the information at hand leading into an auction. Speak to one of our trusted PropertyDuo associates for the advice you need to make an informed buying decision.

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By | 2017-11-15T10:43:07+00:00 November 15th, 2017|Buying a property, Homeowner, How to|0 Comments