Buying a property can be stressful and nerve-wracking, especially if it is your first time to do so. Some even say that property buying can be an emotional rollercoaster. Hence, it will be very beneficial to know some strategies that can help you deal with property buying.
Here are seven tactics to help you save thousands of dollars on the price of your property.
1. Arrange for a Pre-approval Loan
Having a pre-approved loan lets selling agents and vendors see that you are serious and feasible in buying a property. You can also focus on properties that are within the borrowing capacity of your loan. Consulting to a mortgage broker with regards to securing a pre-approval loan can save you time and effort.
2. Collaborate with your Team of Specialists
It will be beneficial to communicate early with your team of specialists, such as your conveyancer, solicitor, and/or building inspector. In this way, everything you need will be locked in place and any time delays will be avoided.
3. Control Your Excitement
Once you found the property of your dreams, try to control your excitement and give the impression that you are not as interested in the place as you really are. This will enable you to negotiate on price with less difficulty than doing so with an obvious glee for the property.
4. Tick all Your Checkboxes
It is important to complete all the vital tasks on your checklist. Have you legal representative to examine your sales contract and schedule a property/pest inspection. In this way, you can easily deal with any issues with the contract, with the help of your mortgage broker, and negotiate for a better price if there are any flaws that were shown in the property/pest report.
5. Familiarise Yourself with the Trade
Through research, you can know the market value of the property you are buying, along with other similar properties.This will help you know if the vendor is being unfeasible with their selling price.
6. Establish a Margin of Freedom
It is usual to have the asking price to be around 5-10% higher than the sum the vendor is prepared to take. You can try offering 15% less if you are convinced that price for the property is reasonable. Remember, you can always negotiate upwards if you start low.
7. Review the Terms and Conditions
In making an offer for the property, certain conditions are imposed. However, the more conditions you impose, the less likely a vendor may accept your offer, or another buyer may come along who is agreeable to sign the contract without conditions.
Here are some phrases in terms and conditions that you may use to make an offer:
- I want to make an offer of $X for the property.
- My offer is subject to a complete building report to be arranged by me.
- I prefer to have the settlement within 90 days.
- I will need a finance approval clause. I need to get a formal approval for finance of $X from XYZ Lender and this may take up to 10 business days.
In conclusion, remember that at the end of your negotiations, you will be signing a legally binding contract, which makes it necessary to seek legal advice on the purchase, even if the deal seems to be too good to be true.
Are you planning to buy a new property? Or have you already bought one?
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