11 Absolutely Must-Know Tips to Crack Best Deal on House Purchase

Buying a new property is a herculean task, more when there are chances of getting duped and defrauded in the process. Staying vigilant and aware of the current real estate scenario of the place you are trying to find a property is of utmost importance. And if you have found the house of your dream, reading our guide on negotiation tips is the best way to get a smart deal.

So where to start?

1. Know the basis and basics of negotiating for houses

Negotiations are going to happen on the basis of location, distance from subway and other public transport, novelty of the house, amenities provided inside, and things like haunted-ness. Moreover, get to know developer’s reputation on negotiations along with his financial state and expectations.

Developers expect you to haggle, so if you don’t negotiate, you will end up paying more than his expectation. Of course you can’t control all the factors, but don’t let go of what you can and make the best of it.

2. Evaluate your needs and set aside a budget suitable to you

Chances are the price of the house is inflated, so make attempts to know the prevalent prices for similar new builds oxted property in the area. Don’t go overboard to pay for the property without ensuring that it’s worth it. You can go on popular valuation sites or ask local real estate agents. Since valuation of the flat start depreciating as soon as you move, overpaying can keep you in negative equity for many years.

3. Seek first-time buyer leverage

Since Government want you to own a house, you can pay anything between 25%-75% under "Help to buy: Support for Shared Owner Scheme" and pay the remaining amount as rent. The developer might still want to charge high but you should make your stand clear.

4. A developer’s lost sale can be your gain

That might need some insider information or willing to share your details to show interest on any sale that doesn’t complete. Sales that have fallen through make the developers anxious since they are still bound with timely meeting of sales targets and uninterrupted cash flow. This might make them willing to sell for less, even more if you can move shortly.

5. Enquire for properties in early or later stage

Early sales create good impression for additional sales and help their cash flow. Late sales give a sense of closure and urgency to move on to the next project. However, this demands to be accurate on timing; see if you can do that.

6. Buy at specific times

End of the financial year, end-of-quarter and end-of-month are sales checkpoints on which the efficiency of sales person is measured. So these times can lend you additional leverage. Though don’t be spot-on, start working a couple of months before.

7. Always ask for a discount

Your developer is expecting this, believe us. And don’t immediately agree on what he’s saying. Weigh on your collected knowledge and experience, haggle as much as you can. Often the approach is what decides if your negotiation skills are going to be fruitful or not. Keeping consideration of factors aside, single digit percentages are acceptable. Still, prices paid by various buyers can differ in the same development. You wouldn’t want to be a case of over-paying for new builds lingfield house owner in front of your neighbour. Still, if the developer is unwilling to give discount, ask some alternate benefits.

Alternate benefits that makes a deal worth taking

8. Ask for a stamp duty contribution

Some developers might agree to pay part or all of your stamp duty instead of a direct discount. So, you get a better price; the discount won’t be reflected in the final sale price (making perceived value better). Just make sure if it’s consider a cash incentive as it could be deducted from the mortgage money. It could backlash and come as a shock.

9. Fixtures, fittings and finishing for free

Moving in a home that needs to erode your pocket further can be an exhausting thought. Consider it getting free in place of getting discount. What’s more you would not have to call individual tradesman to do the ‘fixings’. The list could include anything from carpet to lawn grass, satellite TV to bathroom fittings. However, be vigilant to not get upsold as this can also set the standard for future buyers. Don’t include the things you don’t need else the deal is still not what you wanted/budgeted for.

10. Part exchange your old home

If you are not planning to keep your older property, it would do good to offer part exchange to the developer. Save time, money and your breath needed to sell that separately. However, don’t be in rush so much as to not ask valuations from at least three estate agents. Benefits? You can actually get an overlap to do the shifting a better-than-market price.

11. Ask for support with other costs

Purchase of a property comes with many other costs; look that you get some relief on this aspect if not on the discount front. That could include removal costs, legal fees, estate agent fees, etc.

Additional tips

Best deals are received when you:

• Buy not with your heart
• Don’t pay deposit soon and big
• Seek help from those who have already been through the process
• Are ready to play waiting game
• Are flexible with location
• Know how to deal with the sales negotiator
• Move immediately (and thus not block money)
• Ensure you get everything promised and in writing

We hope that you have got some clarity on how to work your way through the negotiation and purchase of a new property.

Cook Hood is a freelancer social media expert love to write on various topics.