HOW TO NEGOTIATE WHILE BUYING A HOUSE
Congratulations on deciding to your your own home! This is surely going to be one of the biggest decisions in your life and also one of the biggest investments you’ll ever make. Buying one’s own is an emotional moment and tells the world that you have reached an important milestone in your life. Your own home will be a legacy which you will pass on to your future generations. However, buying a home is indeed a challenging task, which requires you to smartly negotiate the path which will ultimately lead to your own house. In this article, we will share some tips on how to negotiate while buying a house. level up residency jogeshwari
Keep your actual buying price to yourself
Only you and you alone should know the absolutely final price that you are willing to pay for buying your house. If you’re going through a real estate agent, you should quote a price to him which is 20% lower than the absolutely final price. This way, you will have a buffer to increase the price for matching the seller’s price, if you really like the particular property and are not willing to let it go even if you have to pay the extra 20% amount which you have kept as buffer. level up residency jogeshwari west
Make a realistic offer
When you begin your house property hunt, tell your broker that you are looking for properties where the seller has indicated that the asking price is negotiable. Then when you quote your price is response to the selling price, make sure that your quoted price is not too low as this may turn off the buyer and the deal will not proceed beyond this point. It is in the interest of both you and the seller that the transaction goes through at a price that is mutually beneficial for both parties. On the other hand, there are sellers who do their thorough market research on the prevailing housing property prices in the locality, and then put their property on sale at a non-negotiable fixed price. We suggest you don’t make any offer to such a seller as they would have already instructed their broker that the price is non-negotiable, and thus will not entertain you.
Don’t show eagerness
Along with price and terms negotiation, property buying is a big mind game. When you enter the property on sale for the first time, do not show any trace of eagerness if you’ve instantly liked the property. You body language, and most importantly your facial expression, should not change throughout the entire duration of your property inspection. Never ever let the seller get the slightest indication that mentally you have finalised buying his property, as then he will not budge a rupee on the price, knowing that even if you leave the property without making any decision, you will surely come back and buy the property at his quoted price. Also, never make the mistake of openly discussing how you will adjust your existing furniture in the property, as that will be the biggest indication to the seller that you have mentally decided to buy his property. This will ruin your chances of any possible negotiation on the price of the property.
Do thorough research if it’s a distress sale
You must surely heard of the term “distress sale property”. This indicates that the seller is in need of money and is willing to sell the property at lesser than market price. While thi may sound like music to your ears, you should do a thorough research on whether the distress in selling the property is genuine or there is something more to it than meets the eye. Insist on seeing the original share certificate and sale agreement, as that will confirm whether the property has a clear title or in encumbered and mortgaged to a lender. Also verify the credentials of the seller to ascertain that there is no impersonation or forgery happening in the deal, and the property owner and seller are one and the same.
Infographic provided by Marketplace Homes, a realtor company