If you're looking to buy a new home, now is the time! After a major inspection into the financial system of Australia has made a gloomy warning for the future of the contentious tax break. This will result in big relieves for the first time buyers, aiding them as they enter the market. Now, of course the prices of homes change depending on how urgent the sales is, so you should start form there: finding a good opportunity.
This might be as simple as finding home owners who are in a hurry to sell, e.g. they are moving abroad; if they are moving because of a problem that isn't a deal-breaker for you (loud neighborhood, far from the city...); they're simply cheaper than the ones on regular sales...
While the first step is finding a good opportunity, other steps will include a lot of negotiating, which is crucial when it comes to buying a new home. Unfortunately, not all of us are born with the innate ability for this and some basic negotiation training will get you far, like:
Start with a clean objective.
It may sound offensively obvious, but it's the obvious things people tend to forget. You must always be clear with what you want from the deal. Is it a small house for just you and your spouse? Then don't get be persuaded into a mini mansion that can easily house two families comfortably. You need to be very clear on what, when and how on the “want” part of your deal. If you're very clear from the beginning, the salesman will know you're serious and will be less likely to try and swindle you.
Always ask questions.
Don't hesitate. It's your right to know what you're going into. Whatever you're curious about it, ask away, before it's too late. You don't want to be the person sitting in a water puddle in the basement, wondering “Why didn't I ask about the pipes?”. You might irritate the salesman for one day, but you'll live better for possibly a lifetime.
Meet the homeowners.
Real estate agents don't like it when the buyers talk to the homeowners, do try to get around this if you can. If you happen to meet them, be nice, charming and try to get on their good side. If you're good enough, they might spill a few things that are problematic with the house. On top of that, if they end up liking you and you earn their trust, they are far more likely to lower the price.
Play neutral.
Don't let the seller know how much you're willing to spend on the house. If they assume or sense that you're rich, they'll raise the price. The key here is that you should reveal as least information as possible about your financial state. When you show up for the negotiation in a black Porsche, talking on the newest iPhone, they won't be impressed: they'll see a sheep for sheering. When you talk about the house, don't tell them about your plans for a pool in the yard, a wine cellar in the basement and so on... these things give away you're doing good and it will just up their greed.
Avoid some basic seller tactics.
These include:
Appraising: of course the seller or the real estate agent will talk good about the house, it's in their best interest to sell it. Of course there are going to be some vague statements like “It's in a good neighborhood, very stylish, built from the quality materials...” These things are pretty arbitrary, what if the huge oak in the yard that is a plus to them is a nuisance for you and you have to get it removed later? What is good for the seller is not necessarily good for you.
Estimate by the real estate agent: one thing is very certain and that is that real estate agents cannot be objective when it comes to estimating the house's actual worth. They have too much at stake here and it's in their interest to raise the price as high as possible.
Home improvement costs: some sellers might try to raise the price by showing you receipts of home improvements they did over the years. This, absolutely, in no way gives them the right to raise the price of the house.
We can see now how some negotiating tactics can lower the price and leave you with a better deal. Don't forget these when you're on the hunt for your new home.
