The perfect property at an affordable price - its not a myth

Interest rate announcement – February 2018

Today the Reserve Bank of Australia met to review the official cash rate. After last cutting rates in August 2016, the RBA have again decided to leave the cash rate on hold at 1.50% this month.

So you’ve found your dream home, but it’s in need of a little TLC. While others may see this as a deterrent, this is actually a great opportunity to nab the house of your dreams at a price tag that’s within your means. Here’s how to tactfully negotiate the price without ruining your chances of securing the property.

Tip #1: Never enter a negotiation empty handed

Obtaining facts and figures about the property will give you ammunition when requesting a price reduction. Some things you may wish to consider arranging prior to negotiating include: building inspection, pest inspection and quotes from tradespeople for work than will need to be done to the property.

Tip #2: Separate your emotions

The most tactful way to negotiate is to eliminate all emotions.Try to separate yourself from the outcome and present your side logically. The owner is under no obligation to accept what you offer, no matter how well you present your points. So if things don’t go your way, being negative won’t do you any favours.

Tip #3: Remember, this is someone else’s house

Negotiation is a two-way street, so in order to come to an agreement, concessions will inevitably have to be made on both sides. Before entering the negotiation, think about any enticements you may be willing to offer the owners to counteract the price reduction you are after. For example, you may be able to offer them a longer settlement period so they can have more time to find a new home. Bargaining chips such as this can often be more valueable to owners than sacrificing a little on the sale price.

Tip #4: If you don’t ask, the answer will always be no

We have come across a variety of wierd and wonderful requests from prospective buyers. Not all of these have been granted by buyers, but you will never know what a seller may be willing to entertain until you ask. However, before going wild with your requests, be sure to think about what is really important to you because unreasonable requests may risk putting off sellers.

A house that requires a bit of work can be a great bargaining tool and generally presents a good opportunity to secure a good price. If you are thinking of purchasing a property and are interested in finding out more about how you may be able to secure that property at a more affordable price, contact us.