Added to the range of emotions you will go through is the fact that the Australian property market continues to skyrocket meaning that demand remains high and rival competition ever-present.
Once you’ve found the property of your dreams, it’s time to make an offer and important to keep a level head during a process that is rarely simple and often involves compromise to reach a price that both parties are happy with. With rampant emotions, competition from other buyers and growing pressure from the vendor, we’ve come up with a few tips to help you stay focused during those vital negotiations.
Before negotiating on price, make sure you understand how much similar properties in the area are selling for. This way, you’ll be more confident about the true worth of the property you want to buy. Also, discover as much as you can from the seller’s agent in terms of how quickly the owner wants to sell and whether the property has been on the market for a while – both factors can affect the final selling price.
It also pays to be a ready and willing buyer. In other words, you have your finance pre-approvals in place, a deposit ready to be put down and the ability to make a serious, legitimate offer to the agent. This gives you leverage and peace of mind so talk to us today about our range of home loans on offer.
This is a big decision so don’t feel that you have to take, or make, an offer that you’re not entirely comfortable with. You may find an agent telling you about a higher offer from another buyer or the need to purchase quickly for fear of losing out.
The key is to not make a snap decision but move forward at good speed with the knowledge that you are in control and confident that you have the knowledge to make an informed purchase.
It’s near impossible to completely remove your emotions from the buying process – this could be your dream home after all and the place your family may grow up in. Still, it’s important to remember your original purchasing objectives and keep in mind your budget at all times.
This could be one of the most significant financial decisions you’ll make so try to reach a rational decision, not an emotional one, as it could be your downfall if you show desperation.
You should already have a clear budget in mind based upon the type of house you’re after and the area you want to live in. With pre-approved finance in place, you have a firm understanding of the top end of your budget and the point at which you have to walk away if negotiations go beyond what you are able to afford or are approved for.
Try not to let the seller’s agent know what that maximum budget is or how much you love the house, as they will use this final walk-away price to their advantage. Remaining calm and neutral is a valuable approach.
Most of us go into property negotiations thinking of the lowest price we can get away with in order to buy the house of our dreams. While this can sometimes work to our advantage, it often leaves a bad taste in the mouth of the seller and their agent – not always the best way to start serious negotiations!
It is important to start low and work your way up if the seller comes back with a counter-offer. But you shouldn’t be fixated on a price and neither should they, so prepare to change values on several occasions while always keeping that maximum figure in mind.
There are no secrets to success or proven guarantees when it comes to property negotiations, but consideration of these tips might go some way to helping you secure a great price for your future home.
If you’d like to talk to us about a Qantas Credit Union Home Loan, call us on 1300 747 747 or find further information at qantascu.com.au
The information in this article is of a general nature and does not constitute advice in relation to any investment or purchase. It has been produced without taking into consideration your personal financial circumstances, objectives or needs. Prior to making any decision you should conduct your own investigation and analysis of any benefits or costs and seek your own independent legal and financial advice. You should also read the Product Disclosure Statement (PDS) available on our website before applying for financial products and services. Normal lending criteria apply to credit applications. Terms and conditions apply and are available on request. Qantas Staff Credit Union Limited trading as Qantas Credit Union ABN 53 087 650 557, AFSL/Australian Credit Licence 238305.