Negotiation is our basic right when it comes to buying something; it becomes even more important if the cost of the thing we are buying is high. This article will help you learn negotiation skill while buying property. Although, negotiation skill is an art and people are equipped with such skill by birth. Women negotiate better than their male counterparts. Anyway, let’s get started with the topic “how to negotiate property price”.
Dear readers, you have to understand the real estate market in the very first place if you are planning to buy your dream home. There are basically two types of market in terms of real estate, one is the buyers’ market and other is the sellers’ market.
If you are buying home then buyers’ market will help you negotiate more because this is the ideal situation for you as supply exceeds demand. On the contrary, in the seller’s market demand exceeds supply so price will obviously goes up which does not give you freedom to negotiate much.
Understanding price trends
I urge you to make proper research to find out the property rate in your circle. Property price differs and fluctuates for so many reasons. It could be affected due to economic slowdown, government policy etc. Property price trend may not be the same in different cities in the same country. Rising job opportunities, educational institutions and medical advancement helps to increase property price in some cities. Make sure you have gone through proper research before sitting on the negotiation table to finalize the deal. Visiting more than one broker in your area will help you understand the current price trend.
Since huge amount of borrowed money is invested on constructing homes, so builders want to clear inventories as fast as possible. First, offering hard cash will get you a good deal as after completion of the project builders want payment faster. Second, if you have pre-approved loan then builders will see you as serious buyer and give reasonable discount. Pre-approved loan ensure that payment will be much faster if deal is done.
Capitalize the situation
You must be adept in capitalizing the favourable circumstances. Today the real estate market is going through very tough time. Tight liquidity, high leverage, rising non-performing assets in construction finance, demonetization, GST, RERA implementation and Covid-19 pandemic have all together devastated the real estate market completely. If you have money and don’t see financial crunch in near future then this is the right time to buy as builders will give you huge discount. Property rate is expected to go down by at least 20 per cent.
An agent can help you find a home very fast as they are aware of the market and the projects in the circle. They know the price trend and everything else that you might not be aware of. They are very good at negotiating the deal. Therefore you will get benefitted by hiring an agent as middleman. Huge amount of money is associated with buying property so hiring a middleman is always a better choice. Although, if you want to go solo and save commission for agent’s service then do proper research before entering into deal.