Negotiating a purchase price can be a minefield for buyers.
Come in too low and you might shut down the conversation or worse, lose out to another buyer. Come in too high and you could be throwing away thousands of dollars.
But how do you know if a seller is willing to budge on price, without ruining your chances of securing your dream home?
At Prudential Real Estate, we’ve seen buyers save themselves thousands of dollars, just by asking these 5 key questions.
#1: How long has the property been on the market?
If you’ve ever listed your home before, you’ll know that there’s a certain buzz when it first hits the market. But as the weeks pass, the excitement quickly wanes, and emotions begin to run high as you wait for that perfect offer – or any offer at all.
How long the property has been on the market may give you an indication of how motivated the sellers are and if there may be any potential issues with the property. If it has been listed for a while, there’s a good chance that they may consider a lower price than the one they may have started with.
On the other hand, if the property is new to the market, the seller may want to wait and gauge the interest before deciding on an offer. This means if you want them to seriously consider selling fast, you may need to make your offer more enticing and consider putting a deadline on it.
#2: Why are the owners selling?
Reasons for selling fall into two categories: those that require a quick sale and those that do not.
Knowing the motivation behind a sale is a powerful insight into whether the seller may be willing to negotiate.
Take selling the family home, for example. If they’re selling it because of a divorce, they may be willing to shave a bit off the asking price to wrap the process up more quickly.
Other reasons which might point to a quick sale include selling due to:
- Financial hardship
- A job transfer
- Buying another property which they are already committed to
- A result of injury, illness or death in the household
- A neighbourhood dispute
#3: Have there been any other offers – if so, how much?
This is a little bit cheeky – but it’s always worth asking!
If your agent is willing to tell you, knowing whether there have been any other offers on the property and, if so, how much they were for, is extremely valuable information. This will give you an idea of whether you are in competition with other buyers and what price you may need to offer in order to secure the property.
If there have been offers which haven’t resulted in a sale, it might also indicate that the owner is holding out for “their” price and will not negotiate. However, if this offer was several weeks ago, the very same one may now be more enticing to the seller.
#4: What’s included in the sale?
You’d be surprised how much extra value you can secure by asking this question!
Maybe there’s an expensive rug which perfectly matches the fixtures, that the owner has nowhere to put in their next property. Or maybe they were planning on taking the top-of-the-line kitchen appliances or pool equipment with them – much to your surprise!
Knowing what is – and isn’t – included with the sale can help you to budget for any additional expenses and make sure that you are getting the best deal possible.
#5: How long is the settlement period – would the owner like to settle quicker?
The normal settlement period in NSW is six to eight weeks – which for a seller who needs the money fast, can feel like a lifetime.
An owner may be willing to provide a discount off the asking price for a quicker settlement, allowing you to move in sooner. However, a fast settlement will only be possible if you have your finances ready to go and your bank is able to meet a revised settlement deadline. It’s best to check with your mortgage broker, solicitor and bank, first.
By asking these five key questions, you will be better equipped to navigate the negotiating process. They can help you to make an informed decision and ensure that you are getting the best deal possible when buying your next home. And who knows, you might just save yourself thousands in the process.
For help and assistance buying or selling a local property contact one of our offices today
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
