6 negotiation tactics for Spring property buyers – Mango Money

​6 ​Negotiation ​Tactics ​For
Spring ​Property ​Buyers

​With home values and auction clearance rates softening in our Spring property markets, buyers will have the upper hand when it comes to negotiating on price. So, it’s a good idea to arm yourself with some sharp bargaining tactics before diving in.

Nobody wants to pay more than the current market value for a home. Here are six negotiation tactics to help you get the right price on your Spring property purchase.

3. Be confident of your finances

When negotiating, you’ll be more confident if you know your finances are good to go. Pre-approval gives you that peace of mind and it gives you an advantage over buyers who don’t have their finance in order. (If you’re new to buying property, pre-approval is an indication from a lender that you qualify for a home loan up to a certain limit).

​4. Understand the seller’s motivations

​Find out why the vendor is selling. If the sale is time-sensitive, you may be able to offer a shorter settlement period for a discounted price. This is often the case if the vendor is in a hurry to relocate for work or family reasons. Try to close the deal by changing the settlement terms or conditions to suit their needs, or perhaps the deposit arrangement (for example, you could offer a larger cash deposit).

​5. Use your building and pest inspection report as a negotiation tool

​If your building and pest inspection reports come back with a few surprises, it may give you leverage to get the vendor to lower the price. Of course, you may not want to buy a property that’s infested with termites, but if the issues are minor, you may consider buying anyway.

​6. Know when to walk away

The number one rule when buying property is not to get emotional. When you determine the fair price for a property, be firm. If the vendor isn’t budging on price and is unwilling to meet the market, you may have to walk away. Once you do, you may find they turn around and agree to accept your offer.

There’s an art to successfully negotiating the purchase of a property. However, with careful research and preparation, you can come out on top. Before you begin shopping for a home or investment property, remember to talk to your mortgage broker about getting your finance pre-approved so you’ll be all set to negotiate with confidence.

Happy property hunting!

​This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.  Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.