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When negotiating on a property

When negotiating on a property be prepared to ask any questions you may have about the property.

Why they are selling?

Ask the agent why the vendors are selling their property.

You may want to know if they are upgrading to a bigger home, or moving interstate, or downsizing because their children have moved out. This information out will help give you piece of mind as to why a seller is selling.

Sellers Asking Price

Ensure you have researched the property and suburb to determine whether the price the seller is asking for is realistic.

Deciding on your purchase price

Factors such as a detailed Property Valuation, research on similar properties and your financial situation will determine how much you are willing to spend on a property. When negotiating with the seller always bare in mind your absolute maximum price so that you do not negotiate above this.

Competition

Competition and buyer interest can play a small part in negotiating the sale price of the property. Find out from the agent if there are a number of interested buyers, or if they have received any offers. Don’t be afraid to ask what price and settlement terms they are offering.

Settlement

Prior to negotiating an offer, make a decision on what settlement period you require. A seller may already have an idea of what settlement period they would like, however, it is still appropriate to suggest your preferred length of time. As a general rule, settlement ranges from 35, 42 or 84days .

Putting in an offer

When submitting an offer you will most likely be asked to provide your legal advisers contact details. Both legal advisers will work together to arrange the required legal documentation, primarily: the Contract of Sale. Your offer is only verbal until the Contract of Sale is signed and exchanged with the seller’s signed Contract of Sale.

Don’t rush in

If a seller is asking for a price which is out of your range, don’t panic and put forward an offer which you will not be able to afford. Put in your best offer and if the seller does not accept, inform them that you will come back to them shortly to see whether they have changed their mind.

A seller can sometimes reconsider a price once they have had some time to think about it.