Top 5 Negotiating Tips For Buying Property.

Property is one of the biggest purchases people make in a lifetime. Properties cost huge amounts to the average person, so knowing how to negotiate is extremely important and could save you a significant amount of money. Here are 5 great tips for negotiating when buying a property.

FInances

1. Make sure your finances are in order and that you are eligible for a mortgage preapproval. Mortgage preapproval can take a long time to obtain and without it, any offer you make won’t be very persuasive and in some instances, the selling agent may not even be willing to show you the property.

2. When you’re in the market for buying property, have alternative plans that you can let the selling agent know of, which can work as a tactic to put off the agent in trying to negotiate a lower price.

3. Do your homework. Research the current market, its prices, and its rates as much as you can. This will show up as complete confidence when any selling agent tries to use terms and jargon to try to get you feeling overwhelmed, and possibly accepting a higher price than you want to.

4. Don’t haggle too hard over small amounts-buying property isn’t all about winning. Make sure you do your calculations correctly and if your buying price is slightly above what you wanted, yet calculates to a non-significant increase in monthly repayment, think twice before declining.

5. If all else fails, and the seller or selling agent will not budge and lower the final price to what you have been working for, make up for it by negotiating with the seller to throw in some extras, such as some home improvements, some furniture that you would like to keep, or any other extras they may be willing to part with.

Two popular Books on Property Negotiations

1. How to Succeed in Property Negotiations

2. A Property Investor's Guide to Negotiating

How to Succeed in Property Negotiations Property Investors Guide to Negotiating


 

Jason PennaAbout Author

Jason Penna

Jason is director at Australia's leading property investment book website Propertybooks.com.au. He has worked as a financial adviser for over 10 years in institutions such as Suncorp Metway, Medfin and National Australia Bank. Jason has a passion for property and online investment and has a number of real estate property investments and online investments. He holds a Diploma of Financial Advising from the Securities Institute of Australia.

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