- Written by Melanie Toye, July 18, 2013
How to negotiate the best price for your next property?
When buying a property, especially a property that may be currently tenanted, the pressure to not check if all the fittings and fixtures are working can be an issue.
If you are serious about buying the property, make sure you turn all the fans on to see if they are working. Turn on every tap, hot and cold, to make there are no blockages. The idea is, if you find your ultimate home, these expenses which involve electrician's and plumbers etc, are costly and when negotiating you can give the real estate agent the quotes you received, for fixing each defect and based on that price, you have a lot more buying power. Even flushing the toilets can show you instantly if there is a plumbing or water flow issue.
The same goes for carpet, it can cost roughly a couple of hundred dollars or more (pending size and texture) to buy new carpet for one room. If the previous owners had spilled wine and had not fixed it. If they could not fix it and it looks like an old stain, don't let the real estate agent convince you it is an easy fix. Instead think of the worst case scenario - if stain removers and professional carpet cleaning do not work, then you will have to pay to replace the carpet. Get a quote and add this to your negotiation list.
See negotiation isn't just about how much you have to borrow from the bank. And it really is not a guessing game, where you pluck a figure that seems fair for the seller.
When you have researched the area and checked the costs to fix any immediate issues of the property, then you have a better chance to sell your buying price to the real estate agent. And the agent has the detailed information to sell your negotiated price to the home owner. No one can argue with the facts.
Other negotiation tips include offering 20% less the sale price. Always get the relevant checks included in the contract such as building and pest inspection etc. Do not be afraid to add a cleaning clause to the contract. Especially if the property was previously used as an investment.
Never feel forced to make a decision and never jump to an agreed price before considering if you can afford it.
- Buying property in a natural disaster area
- Renovate to the value of the market
- Why you shouldn't wait to get into the property market
- Property Investment Choices
- Before you go property shopping, read this
- Three things to consider before upsizing your property
- How much would you spend on an investment property?
- Holiday home investments - is it worth it?
- Passive income for now and the future
- Let The Block be your guide on how buy & sell works
- Decisions, decisions. Fixed or variable?
- Off the plan property purchases
- 2014 - The year of property
- Customer service is our focus
- Buying to renovate and sell
- Another way to look at property
- Manage your own rental property
- December - Is it a bad time to sell?
- Sick of renting?
- Difference between a bigger property vs a smaller one
- 30 Days of Packing during Christmas
- What I learned from buying my first property
- The right time to sell
- The risk going guarantor
- How do you dream big when on a budget?
- First home or first investment?
- Got equity?
- Buying your last home
- Property purchases based on climate change
- The renovators dream
- Auctions are a winner
- Planning for your financial future
- Cheaper to buy than rent
- Pay off your mortgage sooner
- The Effects of Having Low Interest Rates
- Planning for the future
- Looking to Invest in Property?
- How to Choose a Mortgage Broker
- First Time Mortgage Borrowers
- Be 'In the Know' When Buying a Property
- Refinancing Your Mortgage to Build Your Financial Portfolio
- Borrowing in a Self Managed Super Fund
- Major Life Decisions
- Which State Wins the Popularity Race?
- How to Build a Portfolio of Multiple Properties
- Seeking Funds For Your Investment?
- Boost Your Home Value
- When Buying A Unit
- Take the Stress Out Of Buying Your Home With These Handy Tips
- Refinancing - The Smarter Way to Lower Your Home Loan Repayments
- How to Build A Good Deposit
- Lower Your Mortgage With These Simple Tips
- Big Decision - Overseas Travel or Buy Your First Home?
- Buying Off the Plan
- Saving For A Deposit