Finally, the dream property is found, but before the move to your own home can begin, you still have to face the price negotiations . Now it’s time to keep a cool head and prove your negotiating skills .
In the next two blog posts, we give you some important tips on the topic “price negotiations when buying a home” and prepare you for the upcoming home purchase. In our first part you will learn what preparations you should make before the price negotiation.
Proper preparation is the nuts and bolts- why should this be different in the price negotiations for your dream home?
1. Compare prices
If possible, compare the estimated purchase price with the selling prices in your city or community for similar properties. This gives you a first overview and gives you a basis for argumentation during the negotiations. Otherwise, you still have the opportunity to compare prices online. If you can find out about the house prices in the region, you have at least a first guideline, which you can compare with the indicated purchase price.
2. View documents
After you have compared the prices, you should definitely take a closer look at the documents of your desired property.
The most important documents when buying a home include:
• Land register extract
• List of all consumption costs
• Energy pass
• Annual statement
• Building permits
• Valuation report
A look at the property outline can already provide you with initial information such as the blueprint, floor plans and the calculation of living space. Such an exposé is usually created by a specialist and contains the most important information for potential buyers. Nevertheless, you should also show all other documents of the property.
Good to know: sellers are obliged to provide you with certain documents, this does not happen should you in any case follow and demand the appropriate documents.
3. Condition of the property
Another point that can significantly affect the price negotiation is the condition of the property . Take a close look at the object during the viewing appointments! This applies both internally and externally. In addition, you should pay attention to any equipment of the property. This includes, for example, a fitted kitchen. Even if the condition of a fitted kitchen can be judged without further ado, it becomes already more difficult with the building substance. Here is “trust is good, control is better!”. When in doubt, always consult an expert. An independent appraiser will also detect minor defects and can give you accurate information about the condition of the property. If you consider the above points, you should be able to roughly determine the value of the property.
4. The price
Before you make an appointment now, you should consider what price you enter into the negotiations and what is the upper limit for you. Your price proposals should of course be based on the price of the seller, so that an agreement is even possible. When calculating the purchase price, keep in mind that additional costs, real estate transfer tax, notary fees, brokerage fees, etc. are also incurred at the actual purchase price.
Although many people find the price negotiation unpleasant, you should jump over your shadow here and negotiate with the buyer. If you shy away from the negotiation, you may pay too much.
Do you still have questions about price negotiations? Or would you like more detailed information on mortgage financing, financing, subsidies or similar? Your TGI financial partner in Kiel, Hamburg and Flensburg is at your side from the initial consultation through to the purchase price payment. For TGI your wishes and possibilities are the focus of personal consultation.