I need some tips on negotiating down a buying price which is inflated and quite unrealistic. I believe that the house is a good reno opportunity and has good resale profit potential. But the asking price is not comparable to others in the area and from what I see is at least $60000 above what I think should be. The market is certainly moving so to make this deal work I need to buy well. The price is negotiable, and the house has been sitting on the market for nearly 8 weeks. I am a novive for sure, so I don't want to kill the negotiations by making a low-balling offer.
Any suggestions on how to approach this one??
Thanks
Hi Madproperty
What is your basis for thinking that the property is $60,000 overvalued?
I would just make an offer around where I think it is worth and tell the real estate agent why I think it is only worth that much. If you are right and the asking price is too much, chances are the real estate agent knows that and the vendor is just asking too much.
Good luck
K
A couple of Ideas:
– Go Below what you were looking to pay ….
or
– Offer your price and go for a soft discount (get them to pay 5% closing costs)
… or
– Offer discount price with a note paying more in 5 years
… or
Offer close to your price with a 6 month settlement + access for repairs and renovations…. this means you can add value without having to pay for hte loans yet … and even get it revalued prior to purchase to get some equity back out.see how you go…. if it all falls over …. just move on…. there are heaps of deals out there … always!
Cheers,
Kiwi
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