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How To Negotiate The Purchase Price When Buying A House

<img src="https://cdn.sanity.io/images/3023m6wi/production/af8a38dff63ea1d8794fe9b8cacd6a2c2f33a912-1200x765.jpg?rect=0,45,1200,675&w=1200&h=675&fit=crop&auto=format" alt="How To Negotiate The Purchase Price When Buying A House " />

How To Negotiate The Purchase Price When Buying A House

Once you’ve found yourself the perfect house, and are ready to make an offer, it’s time to prepare for the negotiation period. Make an offer too low, and you’ll be left out of the loop, too high, and you’ll be buying a house with no room for negation.

The negotiation period can be tricky, so let us guide you through it. We’ve prepared the perfect breakdown on how best to negotiate the purchase price when buying a house.

Compare:

Before entering the negotiation period, it’s imperative to have a strong understanding of the property’s value. Scope out similar listings within the area or price range in order to accurately gauge the houses true value.

Location:

Location will greatly affect the value and price range of a house, do research on the area and look for any ammenities or assets in the local viscidity. Public transport, trendy cafes, parks or beaches are all wonderful additions to a property, and can greatly affect the asking price for a property.

neighborhood

They will also play a huge role in your lifestyle, if you intend on living in the house. Similiarly, you will want to keep an eye out for any eyesores in the local area. See if the property is near any major roads, smoke stacks or flight paths.

Put in an offer:

When you’re certain that the house is right for you, and you have a good understanding of it’s value, it’s time to place an offer. If you want to make an offer that’s non contractual and more of an ‘offer of interest’, consider making a ‘Claytons offer’, this way you can make offers on multiple properties, and decide which property is right for you dependant on the responses you receive.

When making an offer, it’s a good idea to have your finances in order, this will speed up the process for you, as well as demonstrate your legitimacy and commitment to the vendor.

Negotiate:

The response to an offer will be one of the following:

  • Acceptance of offer.
  • Counter offer.
  • Rejection of offer.
  • No response.

The ideal response from a vendor is an acceptance, this means that your original offer was exactly what they were looking for, and they’re happy moving onto contracts and sale.

If you receive a rejection you may choose to submit a secondary offer with different conditions or price. If a vendor is interested in your offer, they may send a counter offer, this is a response to your original offer, with amendments. The counter offer may include a higher asking price, or different terms or conditions of sale.

Keep in mind that a vendor has no legal obligation to respond to an offer, if you don’t receive a response in 3 days, we recommend moving on.

Counter offers:

After receiving a counter offer you can choose to accept it, and agree to the price and conditions of the vendor, or you can continue the negotiation with another offer of your own.

The negotiation process can be a back and forth, with counter offer after counter offer. Don’t stress, both you and the vendor want the same thing: The best price value for the property.

There are a range of tips and tricks for the negotiation process, but at the end of the day it comes down to the three simplest, and most important steps:

  • Don’t rush.
  • Don’t make assumptions.
  • Don’t take things personally.

Buying a house is a commitment, and certainly not something you want to rush into. Take your time carefully deciding on the property that’s right for you, and don’t rush into accepting an offer unless it truly meets all your needs. Don’t make assumptions during the negotiation period, these things take time, and establishing trust is essential.

Although the vendor may be considering other offers, this doesn’t mean that they’ve forgotten about you. If you’re confused or unsure, you can always reach out and directly ask the vendor.

The process of buying a house can be tough, you may face rejection, dismissal or even rudeness, don’t let this get in the way! It’s not personal, it’s business. Vendors are looking for the best possible price for their property, and if they receive an offer that’s better than yours they might leave you behind.

house

Don’t stress, there’s plenty of other property on the market, your perfect house is out there!