Our top tips for buying by negotiation
Looking at properties with no price can be confusing. How do you know if a property is within your budget? How much should you offer? Here are our best tips for looking at purchasing a property that’s by negotiation to help you get a good start.
Be ready with pre-approved finance so that you know your exact budget and the maximum price that you can pay for a property, this will help you to know what price range to search within and can help to avoid the disappointment of missing out on properties that are out of price range.
Banks often offer a cashback when you secure a mortgage loan with them, check with your broker if you are eligible for a cashback. This can help you with some of the many expenses that arise when buying a home.
Keep in mind to set aside funds for any lawyer’s fees, building inspections and evaluations that your bank may require you to obtain to have your finance finalised.
Ask the listing agent what price feedback they’ve had for any property that you are interested in that so you can gauge what others would potentially pay for the property and whether the property is within your budget or not. Find out how much similar properties in the area are selling for to help determine the value of the property you’re interested in.
Susan’s Top Tip for Buying by Negotiation
Don’t offer an unrealistically low price for a property, as this might offend the vendor. It’s easier to negotiate when there is a mutual respect between the vendor and the purchaser.
Brooke’s Top Tip for Buying by Negotiation
Take time to research sales in the area where you wish to purchase so you’re informed on what price range properties in the area are likely to sell for in the current market. Remember to compare apples with apples, for example a house on a lifestyle block isn’t a good comparison to a house in a town or city.
Doing this research will make sure that you’re offering a realistic price and starting your negotiations on the right foot.