In a sellers’ property market, there’s very little wiggle room for home buyers when it comes to negotiating the terms of a sale, while getting a bargain is almost impossible.
However, there’s a few strategies property buyers can implement to ensure their transaction proceeds smoothly according to Jonathan Charles from Canberra’s Independent Property Group.
He says in the current hot market, buyers are often frustrated, anxious and sometimes desperate after missing out on homes at auction.
“With the market being so strong, people are missing out at auction and, understandably, it can be stressful,” says Jonathan.
“In a hot market, vendors will always be firm on their price and their terms so it is important for buyers to negotiate in a positive and fair manner.”
With most Canberra properties going to auction, it doesn’t leave a lot of room for negotiating. However, being prepared for auction with finance ready can lead to a successful result for all parties.
If a property doesn’t sell at auction, Jonathan says buyers may be able to negotiate a price or offer favourable terms, such as a quick settlement or allowing the storing of furniture in the garage while the owners look for another property.
Most agents are advising their vendors not to sell prior to auction due to the record prices that are being achieved.
Jonathan says if a buyer really wants to make an offer, it would need to be a very good one.
“In the current market, the only way a vendor would accept an offer prior to auction is if it’s a really strong offer,” he says.
“It would pretty much need to be at the top of the price range because auction results are through the roof.”
But there is hope for purchasers, especially families and first-home buyers. Johnathan says some vendors are not driven just by dollars, but often nostalgia can play a big part in a sale.
He says if people explain their situation to their agent it can go a long way to achieving a win-win outcome.
“Some people who are selling their long-time family home really want to see it go to another family,” he says.
Jonathan says buyers should try to be prepared before they begin negotiating a sale or attending an auction, including determining what price they are prepared to pay.
“Before you start hitting open homes, it’s a good idea to determine your price range to help you focus on properties that meet your criteria,” he says.
“Speaking with a financial advisor or mortgage broker will help you to gain a better understanding of your personal financial situation, along with how much you can afford to spend on a property and what your ongoing mortgage obligations are likely to be.”
Having a good idea of the value of a home will also help buyers determine what to offer and allow them to negotiate more effectively.
“However, to negotiate from strength, you need to ensure any offer you make is compelling,” he adds.
Having everything in place – such as finance pre-approval and a deposit – will place buyers in a stronger position when negotiating a sale.
“Sellers will view a reasonable offer from a buyer who is ready to purchase much more favourably,” says Jonathan.
“However, people shouldn’t get carried away with their desire to own the home and offer more than they can afford.
“Once buyers start negotiating, they should try not to let their emotions get in the way or cloud their judgement.
“They need to be prepared to walk away if the property isn’t in their price range, or the settlement terms are not suitable.”
For more buying strategies, visit Independent Property Group, or call Jonathan Charles on 0413 909 158.
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