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NEGOTIATION

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Written by Melanie Toye, July 18, 2013

How to negotiate the best price for your next property?

When buying a property, especially a property that may be currently tenanted, the pressure to not check if all the fittings and fixtures are working can be an issue.

If you are serious about buying the property, make sure you turn all the fans on to see if they are working. Turn on every tap, hot and cold, to make there are no blockages. The idea is, if you find your ultimate home, these expenses which involve electrician's and plumbers etc, are costly and when negotiating you can give the real estate agent the quotes you received, for fixing each defect and based on that price, you have a lot more buying power. Even flushing the toilets can show you instantly if there is a plumbing or water flow issue. 

The same goes for carpet, it can cost roughly a couple of hundred dollars or more (pending size and texture) to buy new carpet for one room. If the previous owners had spilled wine and had not fixed it. If they could not fix it and it looks like an old stain, don't let the real estate agent convince you it is an easy fix. Instead think of the worst case scenario - if stain removers and professional carpet cleaning do not work, then you will have to pay to replace the carpet. Get a quote and add this to your negotiation list.

See negotiation isn't just about how much you have to borrow from the bank. And it really is not a guessing game, where you pluck a figure that seems fair for the seller. 

When you have researched the area and checked the costs to fix any immediate issues of the property, then you have a better chance to sell your buying price to the real estate agent. And the agent has the detailed information to sell your negotiated price to the home owner. No one can argue with the facts.

Other negotiation tips include offering 20% less the sale price. Always get the relevant checks included in the contract such as building and pest inspection etc. Do not be afraid to add a cleaning clause to the contract. Especially if the property was previously used as an investment. 

Never feel forced to make a decision and never jump to an agreed price before considering if you can afford it. 

To discuss more about buying property, call our professional staff at Australian Mortgage Manager on 1300 799 266 or email: This email address is being protected from spambots. You need JavaScript enabled to view it. .