Cheap properties don't come along every day. To find a bargain there are certain things that could help you negotiate the asking price. But how do you know what signs to look for?
Cheap properties do not come along every day, so how do you know what signs to look for?
In order to find a bargain there are certain things that could help you negotiate the asking price down. These could include:
Properties that have stayed on the market
Keep a close eye on the real estate market and look out for properties that have stayed on the market for a number of weeks or months. At the moment, the property market is running extremely hot with the average time on the market for houses sold last week (20th-27th April) was just 27 days, according to RP Data. So you may need to be patient and research thoroughly to find properties that aren’t selling.
Also pay close attention to whether the purchase price has changed. If a property has remained on the market for a long time, but has not changed the asking price could signal that the seller is set on their price and are not willing to negotiate. However, if the price has dropped a number of times on another property, you may have a better chance of negotiating with the vendor.
There are certain situations where a vendor may be eager to sell their property quickly and as a buyer, you should try and use this to your advantage. Speak with the seller’s agent to try and find out the vendors reason for selling. Some situations may include:
The seller has already bought another property: If a vendor has already bought a property, they will most likely want to get rid of their current property before settlement and they may be more open to negotiations.
Divorce settlement: This is not a situation anyone wants to be in, but a divorce can often result in assets being divided and sold. Most vendors will want to move on as quickly as possible, whether the relationship ends amicably or not and may be more eager to sell the property.
Deceased estate: If the property is given to the next of kin, depending on their own circumstances, they may want to sell the property quickly to help them move on.
With the help of reality TV shows, the way people view renovating has changed quite a bit over the past few years. Properties that used to be considered dumps are now being snapped up by keen renovators and then fixed up and sold for a profit.
If you have a renovator’s eye and can see opportunities over problems, then consider looking for a renovators delight property. Not only will you be able to try out some home improvement projects, but you can also use the property’s downfalls to help negotiate the property price down.
Below average marketing
How a property is advertised is extremely important and can affect how quickly the property is sold. If the advertisement is not eye catching with little to no photos that are low quality, they may not receive a rush of potential buyers. This could then snowball into a long listing time which could make the vendor more eager to sell and you can then start to negotiate the price down.
Astute buyers are always on the lookout for things that may help negotiate on the purchase price of properties. These are just a few examples, keep on the lookout and you might discover even more.