How To Negotiate A Good Price On A New Property

Tuesday, April 25, 2023

If you want to buy a new property, there are many different things to keep in mind. You’ll need to think about the location, the budget, the decor, and perhaps what you could do to the property in the future to increase its value or make it more comfortable. A lot of the time, you won’t be able to find your ideal home, and you will need to compromise at least a little (and sometimes a lot).

Something important to remember is that if you need to compromise, it’s likely that the seller will need to as well. After all, they’ll be just as keen to sell their property and move elsewhere are you are to buy it and move in. So this is where negotiation comes in, and it’s something you’ll certainly need to bear in mind. If you can negotiate a good price on a new property, you could save a lot of money and instantly give yourself more equity and less of a mortgage payment to deal with. With that in mind, here are some tips on how to negotiate a good price on a new property.

Photo by Jessica Bryant

Understand The Market

If you intend to make an offer on a property and expect to negotiate on the price, you’re going to need to know what the property market is like right now. You’ll need to know whether the price of the property you like is a fair one or not, and you’ll need to know what comparable properties have sold for over the last few months. When you have this information, you can determine whether or not there is a negotiation to be had in the first place and, if there is, how low you can start with your offer.

The importance of knowing the market is crucial. If the property owner rejects your offer, you can explain why you made that specific offer in the first place and back up all your arguments. It might not help to change their minds, but it will definitely give them something to think about.

Use A Realtor

Realtors can be hugely helpful when it comes to negotiating a good deal on your home. Although you might assume their only job is to find the property and the rest is down to you, the fact is they can be the ideal mediator between you and the seller. When you use a realtor, you don’t have to speak directly to the vendor, which is something that can cause a lot of stress. You’ll be more likely to offer a price you’re happy with rather than one you think won’t cause offence when there is a realtor to broker the deal for you.

Not only this, but the realtor will be able to help you determine the right price to start negotiations at initially. Even if don’t know all the details about the current market, they will have that information, and they will be able to guide you in the right direction. It’s their job to get a deal done, so they will work hard to make sure both sides are happy, and it will be less stressful for you.

Have A Mortgage Deal In Place

It’s vital that you are in a strong position before you start negotiating prices for a property. There has to be some incentive for the seller to say yes, and if you are in a weak position, they are unlikely to agree to your low price. They might not even agree if you offer the asking price - it will depend on how willing they are to take a chance.

This is why it’s essential to put yourself in a strong position to begin with, and one of the best ways to do that is to already have a mortgage deal in place. If you have this and you simply need to tell your lender which property you have chosen and the exact price, the process will start much more quickly. If the vendor has found somewhere to move to, that will increase the chances that they’ll say yes to your offer, even if it’s a lower one than they might have wanted.
Other positive situations for you to be in are being a first-time buyer because you’ll be at the end of a chain with less chance of something going wrong, and if you own a property, it should be under offer or sold. If you satisfy these things, you can negotiate much better and have a more positive outcome overall.

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