You may have heard this a lot of times: buying a house is no joke, it could be exciting but it’s also sometimes a pain on the backside, especially if you did not prepare well for it. It’s also a huge financial achievement and responsibility at the same time.
What makes it even more [financially] nerve-wracking is the fact that there’s a huge amount involved and you could be clueless as to how much you should really buy the house for. Well, truth is what you offer will determine how much will be left in your money stash and how much you should pay in mortgage repayments each month.
If you think you’ll only have enough (in deposit and approved mortgage amount) that you may not have as much for the associated (and upfront) costs, maybe it’s time that you learn the ropes of negotiating your offer. It is a skill, but it doesn’t have to be complicated. You just need to know these five things as you make your decision.
Make time for viewings and be sure to be there. Also, try and bring someone along to help check out the property with you. You may choose an expert or someone you trust enough. Ask questions, but do not always count on an honest answers especially when you’re buying a previously owned home with potential repair works needed in it. Use the flaws you see in the structure to your advantage make a reasonably low offer. Always factor in how much you’re going to spend on the repair when negotiating a lower price. Once a price is agreed on, make it subject to contract and survey and put it in writing. Any other issues found in the survey can still be used to renegotiate.
Consider this: a lot of sellers will out their properties in the market at roughly 10%-20% higher than what they are actually willing to accept as they need room to negotiate and still get their desired price. They won’t tell you this, but to make sure you’re hitting the right price, check the properties in the same area and of roughly the same built and see the average selling price of such.
Don’t Get Excited
Just because you thought it was nice enough and it’s got everything you need doesn’t mean you should give in to the asking price. Sellers or estate agents can see you’re quite excited about the house and they can use it to their advantage. try to show a neutral face (not hostile, though) when looking at the property and commenting on what you are saying.
Reason for Selling
Find out why they are selling. Are they in a rush and buying somewhere else? Is the neighbourhood quite problematic to make them sell and move out? Use the seller’s reason for selling to your advantage and negotiate reasonably. If they’re quite too eager to sell, find out what the catch is, and see if you can actually lower your offer to something in your favour.
Line up a conveyancer
Once you have made an offer, make sure that you have selected a competent conveyancer to handle the legalities of buying a home. Shop around, get conveyancing quotes online and pick one which offers a great service at reasonable cost.
Don’t run out of them. Always look at a couple more homes in the same or a different area to compare the features and the prices. If this is the only thing you’re looking at, the seller or the estate agent may just push you into closing the deal at the price you may not have a lot of choices for. Get the agent, too, on your side and ask them if they’re selling similar properties that you can look at. Do not forgo the “shopping around and comparing” bit. Once the seller learns that you’ve got other choices, they may be willing to negotiate a lower price or agree to your offer.