Published on : 26 April 20193 min reading time
Every home purchase is unique and real estate trading is a factor that depends on many factors. However, there are certain criteria to take into account to successfully negotiate the purchase.
Know how to decrypt the purchase budget
Of course, before entering into any negotiation for your real estate purchase, it is essential to determine what your available budget for that purchase is. This is called funding capacity.
This is calculated from elements such as:
- Your personal contribution
- Your employment situation (contract and salary)
- Your purchasing power
- The desired repayment period
An evaluation on the Internet is not always enough to identify your possible purchase budget. That’s why we recommend that you also contact your banker or mortgage broker to get a better idea of what you can invest.
Things to watch for before negotiating
Evaluate the work
The potential work is, today, one of the arguments invoked to negotiate the price of a real estate purchase. If the house turns out to be old and you have to rehabilitate it or carry out renovation or upgrading work, this can play in our negotiation. In these cases, do not hesitate to ask some estimates from construction tradespeople to have an encrypted base to provide to the sales organization.
Be careful to check the dates of the various technical diagnostics files (gas, electricity, asbestos, lead, etc.)
Examine the state of the market
Again, before you start buying real estate, find out about the state of the real estate market in the area that interests you (neighborhood, city). What is the average price at which properties similar to yours are sold?
You can ask real estate agents or search specialized sites that use big data for example to know the price per square meter. You can also ask for a value notice on the property on myavisdevaleur.fr to have an outside view.
Inquire about the date of sale
The date on which the property is put on sale conditions your negotiation. Indeed, if it was put on sale a few days ago, your trading margin is relatively low. But, if you discover that the house is on the market for 3 months or more, you have a card to play, because it means that the selling price is too high. You can then offer a lower price of about 10%.
Negotiation is a duel, here are your weapons:
- Choose the most suitable for your personality and that of the seller.
- There is no universal strategy.
- Everything is in the right mix and mix of these elements.
You need: Audacity.
- Make a proposal that you think is unacceptable.
- The seller will be destabilized.
- But if he judges you credible, he will tend to reveal his floor price through his counter proposal.
- You are free to accept it or to do a second electroshock.
You need: Cold blood.
- Make a non-negotiable proposal of at least 20%.
- It goes or it breaks!
You need: Patience.
- List all the elements that will justify the proposal you will make: Bad energy balance, noisy environment, high floor without elevator, vis-à-vis, etc …
- If these remarks are indisputable, you will shake the certainty of the seller.
- He will lose confidence in the quality of his property and will be more willing to accept the estimate that you make of it.