Blunders Not to Commit When Negotiating Property Prices
There are sound reasons why we are advised to conduct Due Diligence before buying a property. If nothing, our bit of homework can ably reduce the price that we end up paying for the property. What the vendor/seller asks for and what you pay up need not be the same thing. ‘Negotiation’ is a word that keeps coming up during business exchanges and real estate deals are not aloof from them either.
Comparable sales figure
When you set your eyes on a property, you must engage yourself in finding out the comparable sales figure for the area. It will give you a clear indication of the ‘going’ rate. The list encompasses the price at which similar properties within the same short radius have sold in the past. If we fall short of determining the comparable sales figure, we may end up forking out a whimsical sum suggested by the vendor.
Restrictions and planning initiatives
Before negotiating property prices, it is prudent to find out how the property and the neighbourhood have panned out. To elaborate, is there an easement, a restriction, an encumbrance on the property. Is the neighbourhood chosen for immediate future development or contrarily does it fall within zoning restriction or within the council’s radar of dubious localities. If there are fallacies, you get a bargaining chip in your hand. I will give you an example.
Let us say your vendor did not fetch council approval for the modifications that he made to the property. Now, such approval entails a cost and because you will have to seek them in future at a price, you must ask your vendor to subtract that amount from the purchase price. Same is the scenario if the home needs urgent repairs and renovations.
Why is the vendor selling?
Find out the reason why the vendor is selling the property. If he has already bought a property elsewhere and wants to pay for that with the proceeds of your sale then you have got him trapped in the ‘despair’ mode. Most likely, he will be quite willing to negotiate in such cases.
What does the sale include?
While negotiating, it may be a prudent measure to prefigure if the vendor is selling the premises (only) or also the equipments and accessories attached with it. I know this grind is more to be used for commercial setups but even for residential properties it is wise to be sure what you get. Imagine getting all geared up to clean your swimming pool only to learn that the previous owner has taken the pool cleaning equipments away with him.
These are just a few aspects of Due Diligence but nonetheless all very crucial. A professional buyer’s agent who is experienced in the market and location you are wanting to buy your property can help your cause a great deal. You can get in touch with me here if you have made your mind on a property.