Here’s how you can get the best price for your home

 Here’s how you can get the best price for your home

Take control of the negotiation process and get the most out of your investment

    In a real estate market where prices fluctuate often and there are many players in the field, securing a favourable deal requires careful consideration, strategic planning and a deep understanding of the factors that influence home prices.  Whether you’re a first-time buyer or a seasoned investor, mastering the art of negotiation is essential to ensure you secure the best possible price for your dream home.  So, if you need some aid, we are happy to help.

The very first thing you need to do is figure out the demand-supply dynamic

    “Find out if there are many unsold properties in the area or if supply is more than demand.  This will mean that developers and homeowners will be more than willing to negotiate to sell the property.  When negotiating with a developer, it’s important to give the impression that you are a serious buyer as it will further encourage them to sit across the table and close the deal”.
      At times, there are a few distress sales where the owner is in an urgent need of money and would forgot the property for a price lower than the market value as well.  So, keep a close watch on them.

Usually, one would find lucrative deals around festive seasons

      When developers often lower the prices of homes.  However, market slumps too can be a factor that could cause developers to lower prices.  He says, “Offers and discounts tend to be rolled out during the festive season, and also during market slumps.  Whether to avail of them depends on whether the property itself ticks all the right boxes.  Certainly, discounts and offers shouldn’t be the main reason to seal a deal, but they can certainly sweeten the deal if the property is the right fit”.
If you want to buy a home, there are certain ways through which you can reach a consensus agreeable to both parties.

Few ways using which buyers could negotiate the right price for the property are:

Do your research:

     Research and compare the prices in the desired area; this way you have a fair idea of how much the home should cost and so you would negotiate in the right ballpark.  Consult real estate agents in the area and evaluate different properties based on location, quality, legal status, and potential for capital appreciation.  It would be best if you also understood what offers and discounts are being offered for similar properties in the same area.  Such knowledge is your primary advantage at the negotiation table.  It empowers you to make informed arguments and counteroffers.

Establish good rapport:

      Building a positive relationship with the developer/seller can significantly impact your negotiation success.  Ensure all discussions are friendly, open, and respectful from the outset.  Make it clear that you are well-versed with the pricing trends for properties in that location without being unduly aggressive.  This creates a foundation of trust and goodwill, increasing the likelihood of reaching a mutually beneficial agreement.

Show sincere interest and intent:

      Developers sales teams know the difference between window shoppers and genuinely interested parties.  An offer to make an immediate down payment if the price is right will make a big difference.  One of the most effective strategies for getting a good price is to have a pre-approved home loan.  This shows the developer that you mean business and can close the deal quickly if the price is right.

Know the limits:

      Do not counter-offer a ridiculously lower price.  You can start the negotiation at 15 percent but do not expect this to stick.  During the negotiation process, you can highlight your doubts and concerns about the property but understand that the seller knows you are interested in it (otherwise you wouldn’t be negotiating).  Avoid criticising the property.  Instead, ask the developer how the property compares to a similar, cheaper one by a competitor and why his asking price is higher.  If it is a seller’s market where lots of properties are being sold and sellers are not desperate, there is a limit to how far you can bargain the price.  This is especially true in the case of highly reputed developers.  In a seller’s market, you are ahead of the game if you have managed to bring the price down by three-five per cent.  In a buyer’s market, if the developer’s project is competing with a much more well-known builder in the same area, you can try for a slightly higher discount.

Leverage project completion stage:

      Prices quoted for properties in recently launched projects tend to be lower than those for projects that are either fully developed or nearing completion.  This is because the demand for fully constructed properties is higher, and the developer will be able to sell them much easier.  The stage of completion is one of your most important negotiation powers.  Your willingness to wait for a year or so is a strong argument in your favour, and it will usually be considered.

Factor in other potential savings:

      The price of a property is one part of the final price you pay.  You will incur other expenses, for instance, the statutory fees, furnishing charges,etc.  If the developer is unwilling to bring the base price down (which could happen if his project is selling very well), ask if he will waive GST (in the case of under-construction flats) and/or stamp duty and registration charges.  If these charges are already officially absorbed by the developer, ask him what he will offer additionally to sweeten the deal for you.  For instance, the inclusion of a modular kitchen makes a considerable difference.