Education
No matter what we buy, we all want to find the best price and clearly when buying a property this is one of the most important factors. Buying a home is the most expensive purchase you will ever make in your life, not to mention the most important, so it is essential that you find the best value for money deal. Given that there are two (at least) parties involved in a property deal, the buyer and seller, there is an opportunity to negotiate and arrange for a better deal. The seller is also likely to want to negotiate and obtain the best deal for themselves, but there are ways in which you can strengthen your negotiation position as a buyer. Research the market One of the strongest tools you have at your disposal when it comes to negotiating the best price is market knowledge and data. You need to make an informed offer, and this means you need to review the market and ensure that you are offering a suitable bid for the property. If you bid below the expected value, your offer will be dismissed quickly If you bid more than the expected value, your offer may be accepted quickly but you will pay over the odds If you bid at the expected level, you will remain in the running, but the seller may not be in any great rush to accept your offer. The more you know about the market, the better placed you will be to make an attractive offer, and this can stand you out from any other interested parties. Know what the average is – not just price but condition When it comes to researching the market, don’t just find out average property prices and values and stop there. You need to know what the average type of property is like in a local area. i.e specification, age, general condition. Once you know what the average property is like and why the average price has been comprised, you can make an informed judgement on how the property you are interested in compares to the average property. Does it deserve a premium for instance because its been renovated or extended. Ensure that you are in a stable financial place Before you make an offer for a home, make sure that you are in a position to do so. Some interested parties will make an offer more out of hope than expectation. Therefore, arrange for pre-approval on a mortgage and make sure that your finances are robust enough to allow you to make the best possible offer. When you are confident that your finances are stable, you enter negotiations with greater confidence and more leverage. A position of confidence will appeal to property owners, which can only be of benefit to you, if you’re looking to negotiate the best price. Make sure that you are ready to move If you can show that you are ready to move quickly, you will strengthen your negotiating position. Many prospective buyers have caveats attached to their offer or there may be potential delays attached to the deal. If you have sold your home, you don’t own a home, or you are in a position where you can move home without too much notice, a seller is more likely to take your bid seriously. Appoint a solicitor Being able to move quickly is a very appealing trait to have when buying property. You can show that you are serious about the deal and that you are keen to process the offer by having professional assistance lined up. When you appoint a solicitor, you indicate you are ready to progress the deal and for a vendor looking to sell, this is a highly attractive feature that will stand you out from other interested parties. Are there aspects of your offer that you can use to leverage a better deal? It may be that aspects other than the price you bid for a...