Talk It Out: How Negotiating Would Help You Land A Better Deal
Buying a house is an achievement, and you can heighten the feel good factor by being a smart buyer. This is where your bargaining skills come into play. While there are no set rules for negotiating a property purchase deal, one needs to understand the underlying dynamics before doing do.
For instance, developers are less likely to negotiate on prices than property advisors who have a higher margin to play around with. Also, you are likely to extract a better deal at the launch stage than at the ready-to-move-in stage when you directly approach the developer. The ability of the developer or the advisor to offer you a good deal can also vary across markets, based on the margins in each region.
Here are some more tips that may help you negotiate a better deal:
- Improve your knowledge: Do your research about the local market. Find out and compare the prices of similar properties in the same area. Also try to know for how long the property you have zeroed in on has been up for sale. If the property is unsold for long, there are chances that the developer would be keen to sell it as soon as possible. Consult local advisors to enquire about price trends and analyse it with the price your developer is asking.
- Know the offers: Try to figure out discount schemes and offers being offered by sellers/developers. At times, developers offer free gold coins, free stamp duty and registration, international holidays, modular kitchens, etc. If you are not keen to take such offers, try and negotiate over a better price.
- Ask the expert: It is better to consult a property expert before finalising a property deal. Consult all available channels of transacting — brokers, online consultants and owners and buyers — to boost your knowledge.
- Get a pre-approved home loan: A pre-approved home loan will put you in a better position to negotiate. While this will help you decide the price you can pay, it will also project you as a serious buyer.
- Do not keep your decision on hold: Taking a long time for thinking and re-thinking about your purchase may result in your losing the deal. Do not forget that there are multiple buyers in the market.