The perfect property at an affordable price. It’s not a myth!

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

Whether it’s hiring inspectors for a building and pest report, or obtaining quotes from tradespeople, obtaining facts and figures will give you the ammunition when requesting a price reduction.

Even if it costs you extra, it’s worth getting all the information before making your offer. People often underestimate how much repairs will cost.

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 offer 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

Negotiating is a two-way street, so in order to come to an agreement, concessions will have to be made on both sides. Prospective buyers should try to understand what is important to the owners. What can the prospective buyer offer to the seller to counteract the price reduction you’re after? Perhaps a longer settlement period, so they can find a new home? It’s little enticements like this that can often be much more valuable than a couple of extra dollars.

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

Real estate agents commonly observe all different types of weird and wonderful requests when it comes to purchasing a property, buyers can ask for anything. Whether or not it will be accepted by the vendor is another matter.

From wanting certain fixtures included in the sale price, to extra inspection requests, you won’t know what the owners are happy to give if you don’t voice your desires. However, before you go wild with requests, think about what is most important to you, as realistically the owners aren’t likely to budge on everything.

In theory, you can inspect a property as many times as you like. In practice though, it will depend on the real estate agent’s availability and whether or not the owner is currently living in the property. You might put off the owner if you are constantly disrupting their day, prospective buyers should aim to visit the street at different times during the week. You don’t have to enter the actual home to get a vibe of what the neighbourhood is like.

A house that requires a bit of repair work is a great bargaining tool and generally an opportunity to secure a good price. With the advice of industry professionals, such as your trusted Mortgage Broker, securing your dream home may be closer to a reality than you think.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.