How To Negotiate Your Way To Saving Thousands of Dollars On Your First Property
How To Negotiate Your Way To Saving Thousands of Dollars On Your First Property: January 26, 2016
OPPORTUNITY KNOCKS: Experts say this price drop signals a slowing of Melbourne’s property market, which bodes well for buyers.
MELBOURNE’S median house price has dipped for the first time in a year and a half, spurred by a shift in buyer demand from the city’s pricier inner suburbs to its affordable outer ‘burbs.
heraldsun.com.au
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Sometimes I wonder why first home buyers aren't more assertive when hunting around for their first purchase. Do they simply accept the price that is quoted? Are they scared that there is too much competition and that they will miss out so they quitely comply and pay? One thing is certain...keeping abreast with what's happening in the economy and sharpening negotiation skills can pay huge dividends.
How is this done? For starters, make a habit of reading the paper every day. There is ALWAYS and article on housing. Read it carefully. What is it saying? Does it make mention of median house pricing? Does it say something about the apartment glut in the city? Does it remark on the banks' collective greed and jacking up interest rates for investors?
Are you getting my drift? So what can you deduce from this?
- Median Housing Prices: if they are falling, which they are at the moment, then you might, as a buyer, be placed in a more favourable position; that of negotiating a better price as the buyer loses confidence that he can still ask for the dizzy prices. This is called a buyers' market
- Does the report comment on the glut of apartments: This is something that has consistently cropped up in the news and it is a great thing for buyers. With a glut comes the opportunity to bargain. The seller will be willing to listen as the competition is fierce and he needs to offload. This puts you in the driver's seat.
- The banks raise interest rates on investment loans: Investors more reluctant to invest which means less competition and more stock...all conducive to some serious negotiation.
- Consumer confidence: this is a term that has made its way into our daily vocabulary. When you hear that consumer confidence is down, then jump in and buy. That's when you get your best buys.
TIPS:
1. Do your due diligence!!!! I cannot stress this strongly enough. Know all the fees associated with this purchase
especially body corporate that are an ongoing cost and can really put a dent in your budget.
2. Don't buy simply because it is cheap! Consider resale value, location, vacancy rates etc All these add up when
you put it on the market and could compromise your ability to sell at a good price.
3. Consider a buyers advocate who is more experienced at purchasing and will go through these considerations with
you. Shop around as their rates vary tremendously. Some charge a flat fee eg $3K whilst others charge a
percentage of sale which could really add up.
4. Approach the seller with an air of confidence even if you are trembling on the inside. Be firm with your offer. Have
your cheque book ready. Have your offer in writing and accompany this with a deposit. This is always a hard one
for a seller to knock back and underscores you as a serious contender.
5. Bring someone with you who has had experience buying. Walk away if you need to. If it is meant to be yours you
will get a telephone call. There are always opportunities floating around so don't let yourself get too emotionally
hooked or you will lose out.
The best tip I can offer you is to consider home co-ownership. This will catapult you into the market and take away a good deal of the risk if you do it correctly. ALWAYS invest in a co-buyers agreement to mitigate the possibility of things going wrong. Be smart when buying your first and subsequent properties. It is all possible with an intelligent and considered approach.
Contact Home Addressed if you require assistance in buying a property.