After weeks and months of extensive hard work finding a dream house that checks all the boxes, the amenities, vicinity, home budget, etc., the homebuyer finally zeroes down ‘the one.’ Unfortunately, many buyers are queuing up for the same home, and everyone wants to make it affordable. Thus, it becomes crucial for the buyer to learn certain tricks of the trade while negotiating for purchasing a home.
When shopping, we always love to attain something at a negotiated or discounted price from the seller. But when it comes to real estate negotiation, it may be more complex than regular shopping. Thus, we will look at some tips and tricks that come in handy for getting the best deal.
How to Negotiate a Flat Price with the Builder or a Seller?
While shortlisting a house that fits one’s ‘dream home’ category is always good, getting it at a negotiated price is better. Here are some tips to help the buyer negotiate better with the builder or the seller
Fix a budget
The first step in buying a home or any other property is to be clear about the housing budget. One can always start by setting a budget. Since a seller is never too keen on negotiating,planning a home budget even before the buyer starts looking for a house and negotiating becomes crucial. In the end, even if the deal may not be at the same price one has in mind, it may still be close to the predetermined budget. Hence, set up a final budget and then proceed with the negotiation.
Research the property market
A successful negotiation comes from knowledge. Hence, before commencing the real estate negotiation, it is recommended to be well-informed and undertake preliminary research on the property market. This research must consist of the prevailing prices of similar property in the area and nearby zones, the reason for selling the house, the urgency of the settlement, etc. The pricing aspect can also be researched from various online portals, which can help one do the basic groundwork.
Evaluate the deals
To make the deal attractive, many builders may offer various freebies to appeal to homebuyers. These freebies or gifts may include gold coins, modular kitchens, domestic or international holiday packages, etc. If the buyer finds these gifts don’t really hold value, he may negotiate with the seller to replace them with a discount on the property value.
Many homebuyers are reluctant to include a broker or a real estate professional in the deal. The main reason here is to save on the brokerage fee. However, this may sometimes backfire as the professional broker can share some value-added insights about the property. Since they are well aware of the prevailing market conditions, trends, and other factors, they become the best persons to guide homebuyers. These real estate professionals are also skilled negotiators who can help one avail the best discounts.
Leverage from payment terms
If the buyer has ready cash or a pre-approved loan, chances for favourable negotiation can increase. Typically, sellers are inclined to close the deal with the buyer, who can immediately pay an amount upfront rather than in instalments. For example, if two buyers are competing for a property, one with a pre-approved loan stands a chance for a better negotiation price as the deal could be closed immediately. If buyer ‘A’ agrees to pay ₹60 lakhs in 4 months and buyer ‘B’ agrees to pay ₹58 lakhs in 15 days, buyer ‘B’ has a higher probability of securing the property.
Waive off certain conditions if needed
Negotiation and getting the best deal are not only price specific. One may negotiate on the duration of the settlement, the deposit amount that must be paid, the terms and conditions regarding existing tenants, dealing with the fixtures if they come along with the property, etc. These and similar points of discussion would then make or break a deal. It is always a great idea to start the negotiation with an open mind and be realistic. It is all about give and take, and both parties would have to attain a middle ground to come to a conclusion.
Once the buyer considers all the above factors, prepare to sit at the table then begins a fruitful real estate negotiation. However, before closing a deal, all buyers must conduct deeper research about the project, developer, or buyer to ensure all the legal formalities are met and there are no loopholes.
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