When you sit down to negotiate the purchase of a new home, do you know what’s on the table?
Are you about to have a conversation that’s only about money, or is there more to talk about?
This type of conversation is most common in the Australian market after a property has been passed in at auction and you were the highest bidder, or the sale is conducted by private treaty.
It’s perfectly natural to feel some anxiety or nervousness at this stage of the purchase because you have a lot of money on the line.
When the market performs strongly, sellers will believe they have the upper hand. While they might be confident they’ll find other buyers, you should be wary of paying too much for a property simply to get the deal done.
It would help if you explored all the possibilities that will convince the owner to sell to you – and that’s a much wider set of options than simply the money.
As an experienced agency in our area, we have clients who will often want to sell quickly, or they’d like to sell and then rent the property for a short period while they seek their next home.
Here are a few more scenarios and tips that may help you sweeten the deal without having to reach deeper into your pocket.
Go gently
If you love the property, you should approach the negotiation with care. Dispensing a “take it or leave it” attitude usually ends badly for the buyer. Know your boundaries but stay optimistic.
Know your power
While it’s a good idea to be flexible, it’s worth remembering every concession you make has value. Negotiation is not a conversation about how much you’re going to bend to the other party’s will.
It’s a date
It’s worth exploring whether the seller would like to be flexible on the closing date or settlement of the sale, or their moving out deadline. Sometimes, you can ease the pressure on the seller by agreeing to a longer or shorter time than the average four to six weeks.
Repairs
Your contract will feature a contingency that the property passes building and pest inspections satisfactorily. If there are problems, you can try to use these to reduce the price or offer to take the property regardless, letting the seller know you’ll have to pay extra to fix issues.
Additional purchases
Many sellers are happy to offload furniture and appliances with the home. Your offer to make additional purchases or roll them into the existing asking price can work for everyone.
In the meantime, if we can help you sell your current property, please do not hesitate to contact our agency. We can discuss price trends, buyer preferences and the best way to market your home to maximise its value.
NOTE: The information in this article is general in nature and provided as a general overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.