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In order to get the best price on a property, negotiating with the seller is a given. However, many buyers rush in before doing their research and make mistakes that could have been avoided.

           

In order to get the best price on a property, negotiating with the seller is a given. However, many buyers rush in before doing their research and make mistakes that could have been avoided.            

So what are the most common negotiation mistakes buyers make?

Not understanding the seller

Gaining an understanding of why the seller is selling could help your negotiations. For example, if they have already purchased another house or are facing bankruptcy, they may be more desperate to sell compared to other sellers. Anything that you can find out about the seller’s situation or the local property market could help strengthen your negotiating position.

Not doing your homework

Buyers can end up overpaying for a property because they haven’t done their research beforehand. It is important to look at a range of other properties to see what they are selling for. This will give you a good sense of what the property you are interested in should be worth to guide you on what offer to make.

Not having other options

Even if you think you have found your dream home, it is important not to think that this is the only home for you. Only having one property in mind risks developing a ‘fear of missing out’ condition where you become desperate and lose your objectivity. Having a few properties on your wish list could help keep you level headed.

Acting disinterested Even though you don’t want to seem too desperate, it is still important that the real estate agent knows you are interested. If you act too disinterested, the agent won’t want to waste their time with you, especially if they have other interested buyers.

Offering a specific number

When you make your first offer to the seller, it may be beneficial to offer a price range rather than one specific number. Giving a price range will provide more flexibility, especially if you are making an offer below the asking price. For example, if the asking price is $550,000 and you offer $520,000, it may sound too steep for the seller and they may move on to the next buyer. However, by saying between $520,000- $550,000, it allows for some wriggle room and you may be able to negotiate down to the price you want easier.

Forgetting key inclusions

Although the purchase price may seem like the main thing you should negotiate, don’t forget to think about the other terms. It is important not to assume certain things will come with the house. For example, if the property has a pool, you may assume that all the cleaning equipment comes with it, but then find out after you move in that the sellers have taken it as their next house has a pool.

Not having your home loan ready to go

Don't forget that before you make an offer on a property, you need to have your finances in order. Do you have formal pre-approved for a home loan? Many buyers get caught out making an offer on a property before speaking to their lender about how much they need to borrow and the property they are interested in. Staying close to your lender during your search is very important to ensure you can exchange unconditionally quickly before any other buyers swoop in.

State Custodians has a quick and easy Online Pre-approval which can give you feedback instantly on what you are looking to do. Click here to start. Once you have this initial indication, you can proceed to completing an Online Application to get a formal pre approval locked in. You can also chat to our Lending Specialists about your options. Call on 13 72 62 or you can leave your details here and they will contact you.