t.(03) 9795 8889   f.(03) 9795 8869   fb boutiqueestate

Top 5 tips for negotiating the best purchase price.

This article originally appeared on realestate.com.au. The blog was first written by Emma Sorensen. 

  1. Know that negotiation is a process
    Acknowledging the reality that negotiation is a two-way street can help make the process less daunting.

    Each party – the buyer and the seller – need to gain something from the transaction and feel happy with the outcome. So expect some give and take.

    Putting yourself in the seller’s shoes can help you work out how to best play your hand. For example, why is the vendor selling? And how can you present the case around your offer, and best time it for a successful outcome?
  2. Know the market
    What you’re willing to pay for the property is only part of the equation.

    Sale and auction prices are determined by demand, and how much others in the market are willing to pay. Make sure you research current, comparable sale prices for similar homes in the same area before putting in an offer or bidding at auction.
  3. Be confident
    Put any fears and any negativity to the side. A confident, positive attitude is key in any kind of negotiation.
  4. Use the agent
    In most cases, the seller will be using a real estate agent. So avoid the temptation of negotiating directly with the property’s seller, and always redirect back to the agent even if the seller contacts you directly.

    The agent is an integral player in the negotiation process so make sure you are polite, professional, respectful and make a good first impression.

    Open, clear communication is vital. Resist too much game playing. For instance, hiding your interest in a property can sometimes backfire, with an agent not taking you seriously as a buyer; conversely, don’t put all your cards on the table at once without thinking it through.
  5. Know your limits
    Real estate is by nature a very emotional purchase for many people. Always be aware of your upper purchase limit and stick to it. Never allow yourself to be caught up in emotion – at sale or auction.

Contact us for any further buying tips and advice.