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Hi
Garth - smooth and professional, and with one piece of advice alone,
you have saved us your fee. Can’t ask more than that.
Thank you again, cheers,
Paul
.
. . . . . . . . . . . .
Hi
Garth,
Just to let you know that we received our deposit back from the real
estate agent's office last week. Thank you for the service you provided
throughout the whole process (especially in helping to get the deposit
back a sap) - it was great, and really appreciated. We thank you again
and wish your business well.
Kind regards,
Lydia and Stephen - Artarmon
. . . . . . . . . . . .
Hi
Garth,
You are a champion!
Many thanks- I know it wasn't easy!
I'll be in touch on Monday.
Thanks again,
Bruce
Dr Bruce Schaefer
GEMOC, Earth and Planetary Sciences
Macquarie University
.
. . . . . . . . . . . .
Last month Garth was a Guest Speaker at National Australia
Bank discussing Conveyancing; buying and selling tips to
Home loan Brokers at North Sydney and Bondi Junction; Engagement pending
with Marrickville National Australia Bank as a Guest Speaker on Conveyancing.
He also met up with Vision Home loans where they started
working with and arranging a Guest speaker engagement.
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Brown
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Garth Brown
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"How to negotiate when buying a home"
Are you thinking of buying a home? You would naturally want the best price possible for a new property. Here a some great tips on how to negotiate the best deal.
Buying a home is an experience that’s both emotional (exciting, frightening, rewarding) and financial (probably the biggest monetary commitment you’ll ever make).
As property buyers, we naturally want the best price possible. Paying a lower price not only saves us money up front, but also in the long term. For example, every $5,000 saved on the purchase price saves around $4,700 in interest over the life of the loan (that’s $9,700 saved in total – assuming a 25 year loan at 6 per cent).
So, when buying a home how can you go about knocking the purchase price down? The answer is through the art of negotiation. Here are some tips on how to strengthen your negotiating position:
Know your limit
When negotiating, do your sums and know your limit, but never let on to the seller what your top price is. Stay calm during the process and never make an offer above what you can afford.
If price negotiations go higher than you can stand, walk away. It’s always better to find another property than to place yourself under financial and emotional stress.
Know your seller
During your negotiations, try to gather as much information on the seller as possible. Start by chatting to the estate agent, asking how long the property has been on the market, what price the seller is looking for, and whether or not there are circumstances that might necessitate a quick sale.
You might not get all the information you want, but you will get a feel for how the seller is placed and the potential scope for negotiation.
Keep your cards close to your chest
Keep your own position from the seller. This means not giving away anything that indicates how much you might be willing to spend, how much you can borrow, or even how much you like the property.
Start low
When negotiating, it never hurts to put in a low offer to see what happens. Even if the property is up for auction, the auction can always be withdrawn, and your offer might even be accepted.
When making a low offer, it’s a good idea to provide a credible reason – perhaps the roof needs repairing, the property needs modernising, or there is something about the property that reduces its appeal.
Set deadlines
By placing a time limit on your offer, you may be able to force the seller into making a decision. Make sure the reason for the deadline is reasonable, however. Perhaps there are other properties you’re interested in, or your loan approval has a set timeframe.
Don't be pressured
The seller may put pressure on your to act quickly, hoping you’ll make a rash decision. Gathering information about the seller’s situation – especially in regard to how quickly the property must be sold – will help you to determine how much of this pressure is bluff. Taking your time also introduces further uncertainty for the seller – something which can be to your advantage.
Offer something in return
To get a lower price, you may need to offer the seller some kind of compensation in return. One of the best ways to become an attractive buyer is to offer a quick sale. For maximum advantage, make sure your finances are in place before the negotiations start so that you’re ready to move as quickly as possible.
The art of negotiation
The most successful negotiations are those in which all parties walk away feeling that they’ve made a good deal. When it comes to property, parties can achieve this buy knowing what the other wants.
Of course, in Australia’s current market – where demand for properties is high and there’s a lack of supply – sellers often have the upper hand. To counter this, buyers need to strengthen their position as much as possible. When negotiating using the steps above, try to keep a clear mind and cool heart.
For each offer and counter-offer, remember how much you might be saving – or spending – in the long run.
Our
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