An effective negotiation on a property can not only save you tens of thousands of dollars, but also ensure you secure the right property for the right price. At PK Property Search & Negotiators, we are expert negotiators with 20+ years of experience purchasing for our clients.
Here are some of our do's and don'ts when it comes to purchasing a property:
Initial Investigations
Do: Make sure that you have looked at everything that has sold in the area to gain an understanding on what the property is really worth in that market.
Don't: Go into a negotiation unprepared, and emotionally impulse buy.
Do: Communicate to the agent if you're interested in the property and get things moving in the background with your solicitor and finance broker (including building & pest or strata inspections) to allow yourselves to be in a position to negotiate and move quickly.
Don't: Play games with the agent and act in a nonchalant manner if you really want the property.
Pre-purchase conversations and commencing negotiations
Do: Ask questions. Understand that the two main considerations for any negotiation are price and conditions, so try and get an understanding from the agent about what the vendor wants, then use these in your negotiations.
Do: Use your research to your advantage. Be able to justify your position and how you have come to making the offer, highlighting any deficits to other sold properties.
Do: Also consider adjusting your offer if the building and pest inspection, strata report or valuation report brings up anything out of the ordinary.
Don't: Just shoot from the hip with a low-ball offer if you're serious about purchasing the property.
Do: Consider offering an uneven number. People generally offer in round numbers, which can see the prices going up by larger than ideal increments. When you are reaching the top end of your budget, try this strategy. This can demonstrate that you have come to a serious price and have stretched to put the offer forward.
Best and Final Offer
Do: Consider using an “unconditional” contract (ie. With a 10% deposit cheque and 66W certificate) to entice the vendor to accept your offer. Read the situation, and consider putting in a deadline on the offer to put pressure on the vendor to give it serious consideration.
Don't: Present a conditional contract with a cooling off period. Agents often advise their clients against accepting an offer in this manner as it locks them in to the purchaser and price for 5 days and only the purchaser can change their mind.
Do: Know your best and final figure and be prepared to walk away if negotiations exceed this figure. If you've done your research you know what the property is worth, so don't let yourself get caught in the trap of overpaying.
It is important to note that each negotiation is different and there is no “one size fits all” which is why you should consider having an expert on your side who understands your goals and budget, and can help you to achieve them.
PK Property is Sydney's first, largest and most experienced Buyer's Agency, established back in 1997 and Director Peter Kelaher has negotiated the purchase of over 1500 properties personally for our clients over the past 20 years - purchasing from almost every real estate agent in Sydney. We have the experience, industry knowledge and techniques to avoid overpricing and emotional impulse buying when it comes to negotiating the purchase of a property. We can advise you on what a property is really worth, as well as when to buy and when not to buy, which can save you a lot of money.
To find out more about our services, contact us on +61 2 9960 1066 or Peter on 0419 200 018, or enquire today.