In previous article, we’ve talked about the importance of negotiate a property purchase. Let’s us continue to discuss about how to negotiate a property purchase.6 Essential Tips To Negotiate A Property Purchase Click To Tweet
If you don’t think you good at negotiation skills and hence afraid to get step into property investment field, you must then read on this article as we will share with you the 6 essential tips to negotiate a property purchase. Let’s get started!
➊ Do Your Own Research
Nowadays, there are plenty of property listing website in Malaysia such as PropertyGuru, iproperty and etc allow the homebuyers to gather all of the details such as neighborhood of the property, time on the market, property price trend and etc in order to begin draw up their negotiation strategy.
➋ Get Pre-Approved For A Home Loan
Through the pre-approval letter, you will get to know the maximum amount that you can borrow from the bank and this is one of the most important process during property purchase. In addition, you can show the pre-approval letter to the sellers that you are ready to buy that property up to a certain amount. With a pre-approval letter in hand, you’re practically as much purchasing power as walking in with cash.
➌ Ask For A 5% To 10% Under The Price
In property investment field, anything is negotiable. You can ask for a 5% to 10% under the property price that you expect to pay for that property. For example, if the seller’s asking price is RM 370k and you can ask for RM 350k, then RM 320k and let the negotiations begin. On the other hand, if the seller comes up with the price higher than what you expected, you can negotiate to have some appliances or any accessories included in the purchase price. In this case, you’re likely to win concessions in a buyer’s market.
➍ Pick The Right Property Agent
Property agent who are not familiar with the property area that you are looking in may drag you back. While, a property agent who really know the property market conditions and they will know which properties are overpriced or under priced, which may be more useful for you to negotiate for a best possible deal.
➎ Negotiate Best Terms Instead Of Best Price
Like we mentioned earlier, it is quite difficult to change the property price sometimes, so why don’t you negotiate for a better terms instead? In certain situation, you can offer the seller some concessions on terms. For instances, you buying the property in cash or offer to move the closing date to benefit the seller. While, if the seller not willing to make way on the price, you may ask for concessions such as seller-financed closing costs.
➏ Make A Clean Offer
Last but not least, in seller perspective/ market, they don’t waste their precious time on a lower offer as they believe there will have the better offer approach them. In such case, you should make a clean offer. For example, you could ask for standard contingencies such as inspections and appraisal, but don’t ever expect to win any major concessions. In such competitive market, make your first best offer and then be prepare to move on to another property if the seller doesn’t appreciate your negotiation/ offer.
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