Having brokered home loans in the Rockingham area since 1999, we are in a unique position. We are able to watch the process of negotiating a price on a home happen without being involved in that process. Here are some tips to negotiate a better price on your home.
Buyer’s Market or Seller’s Market?
Whether you are in a buyer’s market or seller’s market will make a huge difference on how you negotiate a price for a home. If you are in a seller’s market, speed might be more important than negotiation because the seller may get multiple offers for the original asking price. In that case, if you really want a home, offer the full price.
However, if you are in a buyer’s market, you have free reign to negotiate. You will have the upper hand because it is more difficult for the seller to get their original asking price. In addition, homes in a buyer’s market spend more time on the market. You may find a seller who is desperate to sell.
Talk to the Agent
Find out why the home is on the market and how long it has been on the market. Find out if there are any problems that need fixing. All of these can lower the price.
Know Your Suburb and Neighbourhood
Make sure you know how much similar homes are going for in the neighbourhood and in the suburb. This will help you know whether an asking price is too high, too low or fair.
Make an Offer Fast
Making a low offer is a great way to gauge the seller’s mentality towards the sale. Find out how the seller reacts.
Consider a Buyer’s Agent
A buyer’s agent can do all of this for you. They can make you a lot more money than they cost.
Get Pre-Approval for a Home Loan at Smartline Rockingham
We can help you obtain pre-approval for a home loan. This lets you know how much money you have to work with. To learn more, call our mortgage broker today: (08) 9527 1800.