As a potential homebuyer, when you find a property that suits their needs perfectly, sometimes emotions can overshadow logic. It isn’t difficult to be caught in a wave of emotions and end up paying far more than you probably should.
Whether you are an investor or a home buyer, it’s crucial that you don’t allow emotions to take precedence when it comes to negotiating on a property’s listed price. Instead, you need to focus on approaching the entire process in an objective and detached manner. Here are some things to keep in view of you want to buy a home prior to auction:
#1 Conduct research
You need to have a reasonably fair understanding of what the property is worth in order to feel more confident entering the negotiation conversation with the real estate agent. For this to happen, you need to assess the property carefully. Conduct thorough research on comparable sales in the local area then set the value you are able and willing to pay for that house.
#2 Get the contract reviewed
It’s important to have clarity on every point mentioned in the contract. Hire the services of a property conveyancer to review the contract. This will help you identify whether there are any points that don’t work for you, and you can ask the agent to make the necessary amendments to the contract before proceeding with the deal.
#3 Be an early bird
Most sellers will be reluctant to take the property off the market if you make an offer very close to the auction date. If you are keen on acquiring a property and find that everything is in order, make your offer at least a week prior to the auction day; keep some breathing room in the offer price for negotiation.
Put forth the offer in writing and ask the agent to forward it to the seller. Do not make a low-ball offer; if a property owner wants to make an urgent sale, they may just consider your offer of it falls within their range. If there is sufficient time, and they find the offer price too low, they may also come back with a counter-offer before the auction.
#4 Get a pre-purchase inspection done
If you are serious about purchasing a property, getting a pre-purchase building inspection done is one way to impress this upon the seller’s mind. A professional building inspector may also report structural discrepancies that you can use to negotiate a lower price, if you want.
#5 Be prepared to negotiate
If the owner doesn’t accept the first offer you put forth, be prepared to negotiate the price. You can ask the agent for their opinion on what the new offer should be; this can help ensure the seller doesn’t reject it the second time around.
#6 Choose the offer value carefully
When you up your offer, make sure you keep it well below what the owner has counter-offered; this will clearly indicate it is the highest you are willing to go. You can also add some punch by including a deposit check in the offer.
It’s important to follow these steps even when you feel you have finally found a house you really want to buy. Be level-headed and show your keenness, but don’t go overboard with quoting too high a price at the outset. Once the seller recognizes that you are serious about buying the property, they will accept your offer and you will be on your way to owning the house of your dreams.
Thanks for reading,
Inspect It First Team
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