5 Hot Property Negotiation Tips

5 Tips Real Estate Agents Don’t Want You To Know

Buying a home can be a confusing process especially if you are a first home buyer. Worse still, your real estate agent may not be making things any easier for you either. So how do you deal with a vendor and make sure that you get a good deal?

1. Don’t make the first offer

The first mistake to avoid is making the first offer. In most cases, whoever makes the first offer ends up in a weaker position in the negotiation process. A good tactic is to say something like, “Yeah it’s on the market for $500,000 but what do you think it will actually sell for?” In this way, you can get a price from them and use that as a baseline to bargain.

2. Compare to other sales

When you’re ready to make an offer, look up properties with similar prices that have sold in the area in the last 6 to 12 months.

3. Don’t crack under pressure

Some agents will put pressure on you to buy quickly by telling you that someone else has a good offer on the property you want to buy. Well, two can play that game! Tell your agent that you too have other properties on your list and you will buy whichever deal comes through first (MWAHAHAHAHA!).

4. Act fast!

Like a particular prorperty? Act quickly because there are sure to be others who like it as well. Make your move while the competition is still making up their mind.

5. Apply for pre-approval

But what if you’ve already fallen in love with a particular house and you just have to buy it? Well, it’s always a good idea to apply for a pre-approval first. This is because most vendors are happy to deal with whichever buyer can buy the property the fastest. Having a pre-approval tells the vendor that you’re a serious buyer and they may even give you a better deal so that they can sell off their property faster!

Need more tips?

Take a look at our home buyer centre for more tips and resources including our LMI Calculator. Also, look like you know what you’re doing by reading up on common real estate terminology.

Once you’re ready to buy a home, call us on 1300 889 743 or fill out our free assessment form to find out if you can qualify for a home loan.