While listing volumes have been down as a result of the lockdowns, the good news is we should see stock and sales activity bounce back remarkably quickly now restrictions are easing.
Property prices have soared in recent months, so now more than ever it’s important to understand how to negotiate like a pro when it comes to your property purchase. Here are our top tips.
Tip #1: Do your research
You’ll be in a better position to make an offer or bid with confidence if your local property market knowledge is up to speed.
We offer several types of FREE reports that will help you cover your bases.
- Suburb Report (contains an overview of the suburb, median sales price, comparison data, a market activity snapshot, and information for investors).
- Suburb Statistics Report (suburb area profile plus comprehensive median sales price data, sales per annum, sales by price, and demographic information).
- Property Valuation Report (estimated value and price range of a property, property-specific details like year of construction, sales history, recent nearby sales and a suburb snapshot).
Hint: If you’re looking for a property on the lower end of the price range, CoreLogic’s Top Affordable Suburbs Report is another handy resource. It identifies the top 100 suburbs across Australia where the median value is under $500,000.
Tip #2: Make sure your finances are in order
If you do find a bargain, you’ll want to be in a position to jump on the deal. Speak to us about organising pre-approval on your finance, so that you’re ready to go.
Pre-approval means a bank has agreed, in principle, to lend you a certain amount of money. Having pre-approval gives you confidence during price negotiations with vendors. It may also give you an edge over other buyers without pre-approved finance.
Tip #3: Find out why the vendor is selling
Understanding the vendor’s motivation to sell may give you an upper hand during negotiations. What kind of type of settlement terms and deposits will be most attractive to them?
For example, they may be moving interstate, or need liquidity fast, in which case they may drop their price for a shorter settlement.
Maybe they need an extra-long settlement while they find somewhere else to live? Or perhaps a larger deposit would make you more favourable compared to other buyers?
Ask the real estate agent why the vendor is selling and use the information as a negotiation tool.
Tip #4: Get building and pest inspections done
Building and pest inspections not only alert you to issues with the property such as termites and structural defects, but they can also be used as ammo during price negotiations.
You may be able to use the findings from the inspection to negotiate a lower sale price.
If you’re in the market for a Spring property purchase, speak to us and we’ll line you up with the right finance for your needs.