How To Negotiate a Fair Property Purchase Like An Experienced Property Lawyer
When the housing market is down and properties are plentiful, qualified buyers are clearly in the driver’s seat, but when things turn around, the balance of power shifts dramatically. If you are buying into a strong housing market, you will need to be a smart negotiator to do well, and that starts with shopping smart and determining a fair price for the property you want.
There are a number of strategies you can use to negotiate a fair price and drive a hard bargain, no matter what kind of market you are in. Here are some smart negotiating tips to get you started.
Here are 5 Simple Steps To Negotiate a Fair Property Purchase Like An Experienced Property Lawyer
1. Use Comparable Sales to Your Advantage
Comparable sales are very important when negotiating a fair price on a property, so use that information to your advantage. The real estate agent you are working with will have access to all the comparable sales data you could ever want, so ask for that data and use it to assess the value of the homes you view.
You can learn a lot on your own as well. Simply browsing listings and checking out homes for sale can give you a great deal of information. You can then combine the information you find on your own with the comparable sales data your real estate agent brings to the table.
2. Check Out Home Values Online
The Internet is another great place to start your negotiations. In Australia, sites like RealEstate.com.au provide home value estimates, and you can compare those estimates to the asking prices of the homes you are interested in. Keep in mind that these estimates are not exact, and the actual value of a home could be higher or lower. Even so, online valuations are good places to start and excellent tools for negotiating a lower price.
3. Use the Inspection Results as a Negotiating Tool
Unless the home you are looking at is brand new, the inspection is likely to uncover at least a few problems. Whether those problems are mainly cosmetic in nature or something more serious, you can use the results of the inspection as negotiating tools and bargaining chips.
Does the inspection show that the roof is starting to show its age? Maybe you can get the seller to knock a couple thousand off the price? Does the bathtub leak? Negotiating a lower sale price will free up money for the needed repairs. The more you know about the home and its condition, the easier it will be to get ahead of the game and drive a better bargain.
In a strong real estate market, sellers may be fielding multiple offers, many of them at, close to, or even over, asking price. If you want your offer to stand out while maximizing your negotiating power, getting pre-approved for the purchase is a good place to start.
It is not hard to get pre-approved for a mortgage. All you need is some basic information. Once the lender runs your credit and verifies your income and financial information, you can place your pre-approval letter right next to your offer document.
Do some thorough research before investing in any real estate property. Remember that a certain risk element exists when investing in real estate and consider your options carefully.
5. Hire Professionals
If you are selling, hiring a real estate agent is one of the first steps you can take to get your home noticed right away. An established agent already has several clients who are looking for homes and might be able to match your home with their interests.
If you are buying property, seek a quality property lawyer with conveyancing experience and track record working across a broad range of transaction types.