Offer price confusion
Home buyers often find themselves in a confused state after liking a home. How much exactly should he shell out for the new house? If he is naïve, there are chances of him ending up paying any amount of money the seller asks for. Arriving at an offer prices isn’t a cake walk. Here’s 4 tips for a home buyer for reaching a fair offer price.
1. Knowledge of the real estate price trend: if the price trend is such that the property rates are coming down, then the home buyer can wait for a while for further depreciation. Home buyer must have a fair idea about the per square feet (psf) property rates in the area before going for a entering into a discussion on offer price. Normally sellers hike the prices by 15-20%, for negotiation purpose. The buyers are advised to use online tools like Price Tends to check and compare the prices of short listed localities.
2. Cross verify the prices from individual sellers rather than 100% reliance on property agents: There is some chance of the quoted price going down as you are checking them with the individual seller. They always have more authority to play with the price. Also you can save on the agent fee.
3. Ask for what all comes in the offer price: Talk about all the fixtures – cupboards, curtain rods, fans, lights etc. Are they included in the offer price? Its good to be specific. These fixtures, can indirectly work out to 2-5% of the total cost specially in case of affordable and mid – segment homes.
4. Go slow and be cautious: if the seller has priced the property high and reduces the property prices over a period of time, just wait for a while, he might reduce it to something more desirable.
Be careful while revealing offer price expectations. A little bargain is never bad; but the offer price quoted by the home buyer must not be too low, that the seller does not even consider the deal.
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