Here are our top tips to tactfully negotiate the price without ruining your chances of securing the property.
Tip #1: Be Prepared
Know your budget. Set a firm upper limit and stick to it.
If finance is required, obtain pre-approval first. Sellers will take you more seriously if your financing is sorted and it shows that you are ready to move quickly.
Also, do your research in the area that are looking. There are many property reports that can provide indicative values including recent sales. This may help you to gauge price expectations.
Tip #2: Never enter a negotiation empty-handed
Whether it’s hiring inspectors for a building and pest report, or obtaining quotes from tradespeople, obtaining facts and figures will give you ammunition when requesting a price reduction.
Tip #3: Separate your emotions
The most tactful way to negotiate is to eliminate all emotions. Try to separate yourself from the outcome and present your side logically. The owner is under no obligation to accept what you offer, no matter how well you present your points. So, if things don’t go your way, being negative won’t help the negotiation.
Tip #4: Remember this is someone else’s house
Negotiation is a two-way street; to come to an agreement, concessions will have to be made on both sides.
Try to understand what is important to the owner and their motivation in selling. Think about what you can offer to counteract the price reduction you’re after. Perhaps a longer settlement period so they can find a new home, or a shorter period if they have already bought. Enticements like this can often be much more valuable than a couple of extra dollars.
Tip #5: If you don’t ask, the answer is always going to be no
From wanting certain fixtures included in the sale price, to extra inspection requests, you won’t know what the owners are happy to give if you don’t voice your desires.
A house that requires a bit of repair work, for example, is a great bargaining tool and generally an opportunity to secure a good price. However, before you go wild with requests, think about what is most important to you, as realistically the owners aren’t likely to budge on everything.