October 2017 Market Update - How to secure your dream home for the best possible price
Have you finally found your dream home after months of searching for the perfect one?
If the answer is yes, then congratulations!
Of course, before you agree to pay a certain price, it is worth taking a step back.
Negotiating on the purchase price of a home is a challenging step, especially in a competitive market where the ball may be in the seller’s court.
However, negotiating is an important step to take as it can make a significant difference to the end cost.
Not everyone is a born negotiator, but here are six tips to help you secure your dream home for the best possible price.
Firstly, Before you start looking for a property, make sure you have seen your local broker to obtain a pre-approval. This will provide you with a clear parameter for how much you can afford to spend on a home.
Secondly, Preparation will benefit you when you’re negotiating on a property price. Make sure you have your deposit, pre-approval, and legal capacity to buy all in order as this will show the agent and seller you’re a serious buyer.
Thirdly, take the time to research your market. Go to inspections, auctions, and find out what similar homes have been selling for. Suburb data and sales information can be provided by your broker and property websites.
Fourthly, it is important to conceal your emotions during the negotiation process. If you seem too keen on the property, the vendor will ultimately look to take advantage of that and charge you a higher price. Buying a property is a major financial commitment so do not feel pushed into making a rash decision. If your first offer isn’t accepted, take your time, consider your options, and then go back in with another offer when you’re comfortable.
It is also important that you do not reveal your maximum price in the negotiation process as an agent or seller will attempt to make you pay as close to that figure as possible. If you are pushed to reveal a budget, you can provide a price range to avoid under-pitching or over-pitching.
Finally, When you’re inspecting any property, it is a good idea to ask the agent what the vendor’s reason for selling is.
This can help you determine your next move and how much room you have for negotiating.
For more tips on how to best negotiate on price, give Mortgage Choice a call today on 13 77 62.