Negotiating a deal when buying a home

The developers are facing a serious liquidity crisis and are leaning backwards to attract buyers with attractive offers and discounts. Currently, a buyer’s market is in action where there’s more inventory than the demand for the housing units. Hence, there’s room for flexible payment plans, free club memberships and so on. Negotiating on a deal depends on the number of buyers a developer has. If the number is much more then, the negotiation will not prove much fruitful. You may also not get the expected discounts.

According to HomeCapital, before jumping into the negotiation battle you must:

Thoroughly Research Market: Researching the local market will give you an edge over the developer getting him into the terms of negotiating. You should also check online real estate portals to know the price of the similar properties in the area.

Understand Price Trends: You should be able to talk price trends and compare the price of the property now with the price at the time of launch. Speak to the people who have purchased home in the same project/area and know how much the prices are appreciated.

Place Your Offer: Now that you have done your homework and know the market trends, it's time you place your offer. Get a quote from the developers of all the properties you are interested in. Once you have the quote make an offer supportive of your market and price research.

Be Cash Ready: Developers love to sell their properties as soon as possible. So once you have a lock on a particular property, make an Advanced Payment to mark the deal. For some aggressive buyers the developers might also offer some irresistible deals.

Realistic Approach: You should always go with a realistic approach. It means you should remember that the developers may not be able to sell the inventory below a certain amount due to the costs involved and his own expectations of margins.

Finally, the conclusion here is that negotiation is much different than bargaining. It means that the negotiation is done to an extent which will give decent profits to the seller after the deal and discounts in the favor of the buyer. One should do a complete research on the property, the developer and his overall records and credibility about the previous projects, the locality and the trends of the market.