Here are some tips to help you negotiate like a pro (particularly in a hot market):
Have as much information as you can before you begin negotiating:
Become a local area expert – get to know not just asking prices, but what is selling, how fast it’s selling and what price it sells for. This means attend as many open for inspections as you can and follow up to see when the property sells and for how much. Of course you should also attend as many auctions as you can to feel the pulse of the local market.
Find out as much as you can about the property you’re interested in – ask questions – why is the vendor selling, how did the vendor decide on the price, have there been any other offers?
Have your support team on standby – your solicitor and finance broker. If you have your finance preapproved you can make quick and unconditional offers and it’s important to have a solicitor who is able to peruse the contract quickly.
Be prepared to act quickly – the amount of people at an open house inspection will give you an indication of if the property is hot! Close the sale after the first open home if possible – the more people who are exposed to a property the more likely it is for the property price to go up.
Don’t waste time with low ball offers – sellers are well-informed today. Do your research and put in an offer that is realistic and enticing to the vendor and take the property off the market before an emotional purchaser pushes the price too high.
If the property is being sold by auction, consider making a reasonable offer in the week leading up to auction day. This is when the vendor is most nervous and will often considered a realistic offer rather than taking their chances at auction. And you may be able to purchase the property at a price you’re happy with rather than risking the price being pushed by emotional purchasers in competition with each other at an auction.
Use the property buyers’ secret weapon – engage an experienced buyer’s agent to level the playing field for you.
Need any help negotiating an offer or contract? Contact our negotiation specialists today!