When you are purchasing a property, one thing you should be aware of is that you can negotiate a discount if you want to do so. Reducing the price of a property will not only leave you with more money to take care of renovations, stamp duty or legal fees, a significant discount could contribute to purchasing another property.
In this article you will learn how to negotiate a discount on a property purchase, this is useful for novice property buyers and up and coming property investors.
Be bold, polite, yet bold. If you discover some issues with the house, speak your mind and let them know that you are interested in buying the property but the problems that you have discovered are holding you back from committing. Use this as grounds for a discount. Remember this, if you don’t ask, you don’t get. Be bold enough to start the process of negotiating a discount on the property.
Prepare before you begin negotiations. Knowledge is power here, prior to starting negotiations arm yourself with plenty of information about the property. Use the “good, the bad and the ugly” method. Investigate everything about the property, the positive aspects of the property, the negative aspects and the really negative things.
Once you have done this, you will have enough information to negotiate how much you are willing to pay for the property.
Know Your Limit
Know how much you are prepared to spend on the property. You should be aware of your highest point and your lowest point before you start negotiating. Write down your figures and try to get as close to your lowest figure as possible. If you are purchasing the property for investment purposes, the lower better. You need to make sure the numbers stack up. If you spend more than you want to spend, it might not be worth your while.
Try and Deal With The Actual Seller
Try and deal with the actual seller. This can be difficult sometimes if the property sale is being handled by an agent. However, dealing with the actual seller is always best when trying to negotiate a discount on a property purchase.
Have a Plan B
This is crucial, having a plan B will help you to close a cheaper deal especially when you let the vendor know that you have a couple of other properties in mind. Either way, if the deal falls through, you will always have other properties to consider. A plan B will also create a sense of urgency, and the vendor will be more likely to sell the property to you at a discounted rate if they know you have your eye on similar properties.
Discuss, don’t argue. Remember, diplomacy and decorum is key here. Never argue your case for a discount. Discuss politely and professionally.
Once you start putting these tips into practice, you will soon develop your own negotiation style and eventually negotiating discounts will be like a walk in the park for you. Remember, practice makes perfect.