Whether you’re searching for an investment property that meets all your criteria or envisioning your dream forever home, negotiation often plays a role in the property purchasing process.

Negotiation typically revolves around the terms and conditions of the sale or the price you’re aiming to pay. Here’s an overview of what’s involved.

Mastering the art of negotiation

Effective negotiation entails achieving a win-win outcome for all parties involved. It’s about demonstrating your seriousness as a buyer while proposing conditions that need to be met.

These conditions may involve price adjustments, additional time for settlement, or specific remedial actions before the final agreement.

Truth be told, negotiation is a common aspect of property purchases. To succeed, it’s crucial to understand that it’s a give and take process where preparation is key.

Get your finances in order

If you intend to make an offer or negotiate on the price, it’s vital to have your finances sorted in advance.

Having pre-approved finance shows your commitment and gives you a clear budget for the property purchase. Essentially, it sets the benchmark for your affordability.

Do you research

To negotiate effectively, you should have comprehensive knowledge of the property market, including recent sales of similar properties in the specific area you’re targeting.

This helps you gauge if your offer is reasonable and fair. Additionally, research the specific property you’re interested in, including its duration on the market and the reason for the sale.

Don’t forget to conduct all necessary inspections, such as pest and building checks.

Be clear it’s a serious offer

Once you’ve determined your offer and the associated conditions, document it in writing and provide it to the agent.

This conveys your seriousness and ensures that your offer will be presented to the seller for consideration.

Embrace a give and take approach

Negotiation is not a one-sided process. It’s about finding the best outcome for all parties involved.

For instance, if you’re proposing a lower price or making an offer before the auction, provide compelling reasons for the seller to accept, such as a short settlement time, a substantial deposit, or a longer settlement period if that suits their needs.

There’s also a possibility that the seller will counter-offer, so be prepared to consider their terms for the sale.

Know your limit

Negotiation often occurs in stages, with you putting forward one offer, and then the seller indicating their terms and conditions.

Throughout the ‘to and fro’ process, be very clear on your limit and resist the urge to go beyond it.

Keep emotions in check

While purchasing a property can be an emotional experience, the negotiation phase requires a business mindset.

Negotiating is about finding a mutual agreement that benefits all parties. It’s not personal, so set aside your feelings and focus on achieving an outcome that works for both you and the seller.

Additionally, keep in mind that the market conditions and the seller’s circumstances will influence your ability to negotiate.

When demand for properties is high, there may be limited room for negotiation due to intense competition. In other phases of the property cycle, there may be more flexibility.