We are about to purchase a principal residence. Need help from the experts. What is the best way to approach the negotiations? Is an offer of 10% below the asking price a good start of dare we go lower ?
Thanks
How long has it been on the market, panicky sellers are good to buy from.
What needs repaired or fixed- take it off the price.
What state are you buying in. Qld, negotiate first then do contract then searches and inspections(building/Pest).
NSW searches and inspections first then offer based on reports. Different world entirely. Contracts differ as does the whole process.
Go informed to the real estate and with the info you can negotiate better for your future home.
Hope this helps
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!Well it is a buyers market at the moment so you should negotiate hard.
Advice I sometimes offer is that an offer isn’t low enough unless you are almost too embarrassed to say it.
I would go 20% at least!
All the best,
Simon Macks
Residential and Commercial Finance Broker[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
you know ive been thinking the same thing as i am also in the process of buying a new home. There are 3 properties on one street and i have contacted the agents to get some basic info on the properties. They are advertised at mid to high 300’s and im planning on offering 310-320k.
A wetherboard home just sold a few doors down that i missed out on at 320k. so i base my price on that and hopefully not buy too much over that value, as the other homes in the street are Brick as opposed to timber.
my strongest suggestion is that you start LOW and i mean low, and make sure that the agent doesnt dismiss your offer there and then as they tend to do that alot. Get the agent to approch the vendor, even if it means putting it in writing.
remember you can always make an increased counter offer, but you will never be able to bring down your price
hope that helps rabprop
hmmmm Sellers Market here in WA one area I looked at is looking at achieving 17% for the year so far.
For Negotiations, 7-10% seems good, as DD said how long has it been on the market?
In the end its worth whatever you want to pay..
what size block, what size house..work out costs to build and the comparable land costs..then add chattels..
Thats how i look at it anyway..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorBest way to approach negotiations ?? Here’s my opinion,
From a Buyers perspective
1. Go in clean (no conditions)
2. Go in really low
3. Go in hard (no fin. clause, 10% cash on the nose)
4. Know your walkaway price
5. If you or your partner are going to whinge and cry if you don’t get it, pay full price.From a Sellers perspective
1. If it’s not a clean offer and equal to asking price – reject it outright – don’t counter.
2. Know your reject price.
3. If you or your partner are going to whinge and cry if you don’t sell it, just accept the offer.Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
hi all
I’ll put my bit in and give you my last deal.
commercial passed in at 600,000.00 three timezs at auction.
Went to general meeting ( association owner)with 40,000.00 cash, no cheques.
Asked for a special general meeting vote walked out without the cash and owned a 400,000.00 property got a tennent in within a week on a 5 x 5 lease at 12.5 % return cpi middle sydney.
cash talkS.
The real estate must give an offer.
go low ( i did) and come up if need be.
Make sure you know your market and never go 10% over what you think its worth.
I don’t and I deal in real estate.
sorry you can’t buy from me I’m on the other side developing and we have to buy at the right price also.here to help
Gross,
How heavy is 40k exactly? Did you have it handcuffed to your wrist? Seriously though, that’s a great deal. The things I’ll dream about.Rabprop,
I’m no expert but these are my thoughts. Try to find out as much as you can about the seller’s motivations/needs/etc. If you can cater to these whether they be quick/long settlement, etc. then you will have greater bargaining power.After your initial offer, ask for a counter offer. No point bidding against yourself!
Munjy
Hi Rabprop,
Get to know the area. Asking price may not have too much to do with the true value of the property based on comparable sales. Then as the others have said you need to find out the sellers motivation and be realistic about your own. If you are emotionally attached to it (hard not to be for a ppor) then it will be harder for you.
Good Luck
[email protected] – Experienced investors living in NZ who can find properties to meet your needs!
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hi all
rule number one
Never get attached to real estate I don’t.
If you think that its a bit hard to negotiate then find a negotiator to do the deal on your behalf.( no i’m not applying)
Your local school has lot of parents and some of those will be real estate people, car sales people (they make good deal crunches) and they are removed from the deal and working for you.
As for cash it makes a big difference anybody who say it doesn’t hasn’t handed over rolls of notes.It makes handing it back very difficult for some people.
As they say money talks, —- walks.
and to put your mind at ease 40 k is not that large amount of cash, one of my fast food clients carries that in his till at the end of a day and it isn’t a case.
I think you have been watching to many bond movies no chained brief case either just the normal leather computer bag for me.here to help
Originally posted by rabprop:We are about to purchase a principal residence.
Well, I just think it is a little different when you are looking for a home to live in and love.
I think that you, if you really love the house and neighbourhood and it is what you want, will be happy to pay market price for it.
Just try to find out what other, similar houses in the same hood have sold for recently.I think there is always a buffer of about 8% or so that is included in the asking price, but you just have to make sure that the asking price is close to the market price.
Real estate agents are not crazy and are not going to start off with an unrealistic asking price in this market.In my opinion it is reasonable to offer 10% below the asking price and negotiate from there, if you really see this as a potential future home for you and your family/partner.
Celivia
Hi Gross
I read your post with amaisment that you bought a property that past in at auction 3 times for 6 million yet you were able to then buy it for 4 million with 40 k cash deposit.Either i have not understood your post properly or the selling agents didnt have the details of the highest bidders from the 3 previous auctions which surely would of been higher than 4 million or was it that the owners were asking 6 million but no one bid for it at all.As pauline Hanson would say please explain in more detail if you would please.Im not doubting you im just curious to know how it all came about>Cheers Rob
hi robbo333
The figures are 650,000.00, 550,000 and 460,000 not million my price is on rp data.
look in rp data 263 wardell rd dulwich hill nsw.
real eatate that auctioned it, raine and horne
lj hokker ( dulwich hill).
Te ex owners were the small business association of nsw south wales,( and you would think they know how to deal)
I purchased and flew out to milan for business 2 days later and my parnters finalised the paperwork while I was way.
Jim(ceo)(can’t spell his indian name is still the ceo )(they purchased the building from the CBA for more then I did 5 years earlier).
One thing you will learn is I deal and get the deal across the line or I dump it and move to the next.here to help
Offer at least 10% off. We just bought IP Southern Highlands, NSW, asking price $430K, offered $380K, eventual selling price $388K. Vendor didn’t want to go below the $400K but eventually lost his nerve thinking he’d never sell [smug2]. Lots of motivated vendors out there especially when their props have been on the market over 6 months [smug][laugh4]. But if you make a low offer make sure you make it clear that it’s a genuine offer… apparently some agents tell their vendors otherwise.[weird]
Good luck [daisy]
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