How to negotiate like a pro
Have you found your dream home? Kelly Inn, assistant buyer’s agent at Highspec Properties, shares her tips on how to negotiate your purchase like a pro.
As a professional buyers agent, I am often asked by clients: what is the best way to negotiate and put in an offer that will be accepted against other buyers? While every negotiation is different and we strategise accordingly, these are the top 5 things you need to prepare for before negotiating.
1. Do your research on price
There’s the listed price, and then there’s the actual value of the property. Don’t just rely on what the agent tells you the home is worth, as they may have priced it higher or lower than the market.
Before you put in any kind of offer, look at similar properties that have recently sold in the area on property websites like Domain or Realestate.com.au. This will give you the best idea of how much homes actually sell for, rather than what the owner wants it to sell for.
2. Thoroughly review the contract
Once you receive the contract, have your solicitor or conveyancer thoroughly review it and send you any suggested amendments. If you sign on the dotted line without running it past a legal professional, you may end up with clauses that you didn’t know you were agreeing to.
Be sure to ask the solicitor or conveyancer to explain any recommended amendments to you as well, so you know what you’re getting into if you do sign the contract.
3. Conduct professional reports
Order building, pest and strata reports before you put in an offer, and have them reviewed by a professional. You want to make sure the property is structurally sound and be aware of any upcoming maintenance or repairs required, as this could give you additional negotiating power.
4. Obtain pre-approval
Check that you have your finance pre-approved and it is up to date. Never make an offer without documentation in writing from your broker or lender. This is particularly important if you’re bidding at an auction, as you need to pay the deposit after the auction if you are the highest bidder.
5. Prepare your deposit
Being able to prove to an owner that you have funds available can work in your favour. Make sure you have enough to pay for the deposit once your offer has been accepted, either by demonstrating that you have received pre-approval or that you have enough savings to cover the deposit.
Remember, it’s not just about price
Price is an important factor when negotiating on a property, but it’s not the only one you have wiggle room on. When engaging in negotiations, consider the following:
- Price: see what the interest has been. How motivated are the vendors? If the vendors are eager to sell or if the property has been on the market for a while, they may be willing to accept a more aggressive offer.
- Terms: check the length of settlement and what the vendors require. This is another opportunity to set yourself apart from other offers by providing a shorter settlement time or upfront documentation.
- Unconditional offer: if you want to distinguish yourself from other buyers, including a 66W certificate will waive your cooling-off rights. Only ever use this once you have completed your due diligence and had advice from your solicitor.
Common mistakes to avoid when negotiating on a property
We often see buyers make mistakes when negotiating which can make or break a deal. Some include:
- Taking too much time to act and put in an offer on the property.
- Thinking the agent is playing games when they say they have interest or an offer, then getting disappointed when they sell to someone else.
- Not keeping the agent up to date on where you are at.
- Negotiating only on price and neglecting terms, which are just as important.
- Not doing their due diligence or detailed research on price comparables.
These are tried and tested methods of negotiating that we use at HighSpec Properties, which is why we have been successful at accelerating our clients’ property search in record timing.
Negotiating can be stressful and difficult for some, or they simply do not have the time. As representatives for our clients, we are there to alleviate this stress and be a sounding board. We provide our clients with the confidence that they are buying a great property that is well priced, and that they’re putting forward an appealing offer that gets accepted.
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** General Advice Warning
The information provided on this website is general in nature only and it does not take into account your personal needs or circumstances into consideration. Before acting on any advice, you should consider whether the information is appropriate to your needs and where appropriate, seek professional advice in relation to legal, financial, taxation, mortgage or other advice.