Buying or selling a property is one of the biggest financial transactions you’ll ever be a part of, regardless of whether you’re a first-time home buyer or a property investor. When you’re talking about spending a few hundred thousand ringgits or more, getting the best possible deal is crucial.
So, you need tactics. Once you understand the psychology of negotiating and the motivations of all parties involved in the property sale, you’ll be in a better position to negotiate favorable terms.
Negotiating a Good Deal When Buying a Condo
You’ve finally found a house for sale in Kuala Lumpur that meets all your requirements – it’s in the right location and it has all the right features. You’re ready to make an offer, but you don’t want to pay a cent more than you have to.
Generally, negotiation is about understanding the market, finding out which experts can help you, and sticking to a budget. If you negotiate well, you can enjoy savings not only on the purchase price, but also on stamp duty and home loan interest.
- Research the local property market
It’s impossible to work out how much a condo is worth if you haven’t done your research on neighboring region. Inspect similar condos in the area to see how they compare to one another. What price have similar properties sold for nearby in the past few months? Working out the true value of the condo will give you more bargaining power when it’s time to negotiate. You also can try to search for house for sale by owner or bank auction property as it usually offered in lower price compared to other properties in Kuala Lumpur.
- Dealing with real estate agents
Remember that a real agent is working for the homeowner, not for you. It’s the agent’s job to get the best deal for the seller, so they might use tricky tactics to get you to up your offer. Don’t feel pressured into offering more than you’re comfortable with, and don’t over-disclose when it comes to your budget or your emotional attachment to the condo.
At the same time, it’s important to be upfront and open with the agent. Communicate clearly with the agent and make yourself as easy to deal with as possible – this can help your chances if the seller is considering your offer alongside other interested buyers.
- Use a buyer’s agent
A buyer’s agent can help you find the right condo and then represent you throughout the negotiation process. A buyer’s agent will assess different properties around town and negotiate the purchase of properties on your behalf.
Using a buyer’s agent also gives you the advantage of being able to access off-the-market condos which can be achieved through their industry networks.
- Study the property
To work out exactly how much you should offer for a condo, it’s important to take a closer look at the features and drawbacks of the property and why the homeowner is selling.
Questions you should ask include:
- Why is the homeowner selling?
- Are they looking for a quick sale?
- How long has the condo been on the market?
- How much is the homeowner expecting to sell the condo for? Is that price flexible or is there room to negotiate?
- Does the condo have any known issues, such as building defects or pest problems?
The answers to all of these questions will impact upon the motivation of the seller. For example, a homeowner who wants a quick sale may be more likely to accept an offer below their asking price than one who is happy to wait for the right buyer to come along.
- Be disciplined and stick to your budget
Before you start your Kuala Lumpur house hunting, you need to sit to work out your budget. It’s also a good idea to speak with a bank officer to understand your borrowing capacity.
Make sure that you stick to that limit no matter what sort of pressures you face. Whether it’s competition from other buyers or simply the fear of missing out on your dream condo, don’t sway from your budget. If the price of a condo is taken out of your reach, walk away.
It’s a good idea to offer an amount less than your maximum limit. This gives you some room if the seller wants to negotiate, while it could also end up saving you a significant amount of money on the condo purchase. On the other hand, if you make an offer at the upper end of your price limit, the seller may think you have room to move and you could be priced out.
Avoid offering an amount lower than the property’s asking price. This will insult the seller and make them less likely to consider any future offers you make.
Finally, if possible, make sure you have home loan pre-approval before you make an offer.
- Avoid panic buying
To remain cool, calm and collected during the negotiations, try to remove emotion from your decision making. Keep in mind that if you don’t secure this condo, there will be many similar condos around the corner that will fit your buying criteria.
Fear of missing out (FOMO) can be a powerful motivator, especially in the excitement of an auction, so don’t let it overpower your plans or budget.
- Special conditions
A good tactic in your negotiations is to include special conditions in your offer which can make you stand out from the crowd.
For example, if the homeowner is keen for a quick settlement, you could indicate to their real estate agent that you are willing to finalize settlement within a reduced time frame, such as 30-40 days. Similarly, showing that you have home loan pre-approval and that you are willing to pay a large down payment for condo can also increase your bargaining power. Of course, you’ll need to be ready to pay a down payment for condo straight away if your offer is accepted.
- Look for a good deal in online property listing platform in Malaysia
With the advancement of technology in our world, everything can be done digitally including looking for a dream condo. One of the online property listing platform that you can choose is Wonderlist Property. From their comprehensive online listing platform, it offered you a vast option to look for a condo that suit your criteria. You can visit their online listing platform via desktop through https://wonderlist.property/ or https://wonderlist.my/ and you can download their real estate mobile application available on both iOS and Android platform.
Read More >> Buying A House Directly From Owner