Do homework, negotiate to get a good property deal
SAVVY buyers looking to snap up some good deals in the current market need to do their homework, says Rhys Dyer, chief executive of bond originator ooba.
They also need to know how to leverage their negotiating power, he adds.
Know what you can afford
Buyers should have a clear idea of what financing is available to them.
“Rough estimates of what you think you can afford just aren’t good enough in these days of stricter lending policies,” Dyer says.
Engaging with a bond originator and using a bond affordability tool will give buyers a realistic indication of their price ceiling.
Understand the seller’s situation
Insight into the homeowner’s motivation for selling can be invaluable when negotiating the final price, says Dyer. “If sellers are under pressure to move, it is more likely that they will accept a lower offer.”
Research comparable homes
A home’s value is governed by the current market in that specific suburb so it is important to have a good understanding of what similar homes are selling for.
Find out how long a property has been on the market
The longer a house is on the market, the more likely it is to be overpriced.
“Overpricing is one of the worst things a seller can do. But it also presents one of the greatest opportunities for astute buyers who can expect price cuts of up to 15% from sellers who are becoming desperate.”
Think beyond price
If a seller won’t budge on the price, he or she may be negotiable on other issues.
“Buyers should also consider asking for concessions on transaction costs or items of repair or improvement.
“In the case of newly built homes or new developments, developers are often less willing to lower selling prices, but they may be amenable to provide other incentives, such as upgrades or free landscaping.”