Five Property Negotiation Tactics
Work with a Buyer’s Agent in Melbourne to Take Advantage of These Tactics
Many first-time property buyers struggle with the idea of negotiating. You may want to get the process done as quickly as possible, but a buyer’s agent in Melbourne could secure a lower price on the property.
That makes negotiation a key part of the buying process, so here are five negotiation tactics from our buyer’s agents in Melbourne.
Tactic #1 – Secure Your Position
You need to be in the strongest position possible before you start negotiations. Make sure you have pre-approval for your home loan, plus the money needed to place the deposit. Hire a solicitor and make sure everybody involved knows that you’re ready to move ahead straight away.
The seller’s agent will see you as a more attractive prospect than somebody who doesn’t have everything in order. In some cases, seller’s agents recommend buyers who offer less than others, but have everything ready to go.
Tactic #2 – Ask About the Lowest Price
This is a bold move, but one that pays off more often than you might think. Most sellers aren’t expecting you to ask about the lowest price they will accept, so this question can throw them off their games.
Generally, you’ll find seller’s agents are cagier with this question than the seller themselves. An agent may not always tell you the actual lowest price they’ll accept. Even so, the answer may provide a new base figure for negotiation.
Tactic #3 – Think About the Seller
What do you know about the seller’s situation? It’s an important question to ask because the seller’s situation may influence how he or she acts when negotiating.
Try to find out any information about why the seller is selling, if they have any other offers, and if they have already bought a new home. The answers to these questions could give you leverage in negotiations. For example, a seller who has already bought a new home and has no offers for their current property is more likely to lower the price.
Tactic #4 – Do Your Research
Look beyond the house you’re trying to buy and towards the other houses in the area. Work with your buyer’s agent in Melbourne to find recent sales of similar properties in the same location.
This will give you a good idea of how much a property like the one you want to buy usually sells for. You can use this to negotiate downwards if the seller wants more than the average sale price.
Tactic #5 – Highlight the Problems
You should use every problem you find in your house inspection to your advantage when negotiating. Mention any concerns you have early on in the negotiation process. Concerns could include anything from needing to replace the roof to noting structural damage in the property.
Back these issues up with reports from your inspector. Sellers will be more likely to lower their prices if you can prove the issues exist.
Those are our five negotiating tactics that could help you secure a better property price. Contact one of our buyer’s agents in Melbourne today to find out how you can save money when buying a new home.