The time has finally come. After endless searching through property listings, the inspections and back-and-forth between buyers and sellers, it’s time to seal the deal. Although, you shouldn’t exhale a sigh of relief just yet because the process doesn’t end here.
There are still some issues to be resolved and we’ve identified the top 5 talking points for contractual negotiations. Let’s start with the bigger picture and work our way down to that pen-in-hand moment.
Discuss market conditions
Real estate markets are in a state of constant change. And the insights these markets provide must be closely examined with the consideration to your own individual real estate transaction. Don’t be afraid to share your thoughts and opinions because as a buyer or seller, your reasons for making a purchase or placing a property on the market is valuable.
Do some research and form your opinion using the range of in-depth information available online. This may help you identify whether you’re in a falling or rising market, which may affect your decision. For buyers, it’s usually best to buy in a rising market, while with vendors it’s usually best to sell in a falling market. We cannot control the market but we can monitor it and make it much easier for you.
Upon closer consideration, this is a difficult task and valuations experts spend years refining their skills to provide accurate property values. If you remove the dollar value from your thought process and ask one important question; why does this buyer or seller want to transact?
They could be up-sizing for a bigger family, or accessing some equity. The reasons are many and varied. You should be clear on your intentions and your opinion on the property’s value. And if you are fighting for a price, you need to have a reason.
Take the option away
As the age-old adage states, ‘You don’t know what you’ve got until it’s gone.’ Buyers can become understandably nervous when their purchase moves closer to reality. They’re close to making a potentially life-changing decision. If a buyer is apprehensive about signing, remove the prospect of sale from them and see how they react. And if they truly want it, then they will fight to have it back.
If you think this might damage the relationship, simply discuss the possible outcomes if their apprehensiveness becomes an issue in closing the sale. Outline the potential outcomes and consequences if they don’t buy, but don’t unduly pressure them.
Conveyancing is important
Conveyancing is an important part of the buying process and it’s a prudent option to engage with an independent conveyancer when making an offer and negotiating a contact of sale. Remember to always approach negotiations with a certain degree of flexibility. This means you should understand which terms to negotiate.
Be ready to do the deal
It’s completely acceptable to request adequate time for ample consideration of the sale. But when the time comes to sign the agreement, a buyer or vendor should have had their queries and concerns addressed long before this point. This also includes having your deposit ready and creating clarity around your terms. If there’s a strong working relationship between buyers and vendors and you have discussed the above points, you should expect a drama-free transaction.
Author: Damien Sienkiewicz is a Senior Sales Consultant at Beller Real Estate. Damien’s extensive work history has him well placed to be one of the most highly regarded real estate agents in Melbourne’s south-east. Achieving his REIV Certificate in 2008, and having thoroughly studied negotiation, Damien is committed to enhancing the sales experience for all his clients.