I want to buy a property. How can the price be negotiated?

Hi Yogesh, 

Buying a property requires extensive groundwork and good negotiating skills. The basic thumb rule that the market swears by while buying is to get it as cheap as possible. But there are certain aspects associated with it that actually do the trick. Here are some tips that will help you in better negotiation with the seller.

When you are out in the market looking for a flat, do not indulge in hasty decisions. Do your groundwork, understand the real estate market in your preferred locality and then select the locality accordingly. If you are looking for property in or near Ghaziabad, you can look for projects in Vaishali, Vasundhara, Indirapuram, Sahibabad, Mohan Nagar, Siddharth Vihar or Raj Nagar Extension. The property rates are lower as compared to other parts of Delhi-NCR.

Another aspect of your research must be around the developer of the property. They give you the real picture of the property, cost, and discount, etc. You must get an expert opinion as well for better clarity.

Although, many believe that showing interest may result in a higher price pitch from the other party, however, curious buyers do stand out and may bank on some good deals and discounts. If you are truly convinced and interested in the property, take your time and make an offer after careful evaluation. However, keep your options open and get multiple quotes to make a comparison.

Did you know? Developers are interested in buyers who have cash in hand or at least have a pre-approved home loan. The reason? Well, they are interested in closing the deal faster and getting their cash soon so as to start working on their own future projects. Make sure that you show them that you have the funds, but at the same time, gauge your developer’s needs. If he/she has cash needs, you’ll have an opportunity to negotiate and crack the deal at your convenience.

So, off late we’ve seen the market surge for 2BHKs, hence, there is an option of getting a good deal at an upgraded property. You can try and get good discounts on 3BHK or large-size units. Builders are trying to find a market in these segments so this can be your golden opportunity. 

Consider getting into deeper research about the developer and the building project before jumping on any deal to ensure that the legal formalities are done and there are no loopholes. Read through terms and conditions carefully before closing the final deal.

Good luck finding the right property!!

Buying a property and negotiating on the property prices is a tough task. It requires good persuasion skills and a keen eye to negotiate and crack the best deal in a property transaction.

But how to negotiate property price is one big question that most of the buyers and sellers struggle with. Don’t worry, I have some awesome property negotiation tips for you that will help you get the best price for the property you have your eyes on.

1. Research for the property and all the alternatives available within your set budget and preferred locality. It will be a lot easier for you to lay the groundwork first and then proceed to buy the property. A rough idea of the prices of the properties in the desired price bracket will surely give you an edge in your negotiation. To avoid any confusion, involve an industry expert to get an in-depth review of the local market as they may help you crack a deal.

2. After going through the current market trends, try to get in contact with the seller. Let the seller know about your reasons of interest and give them a loose idea of your budget. By being specific about your property needs, your seller will see you as a serious buyer. Let them know that you wish to grab a good deal at the earliest. You might also end up with a decent discount offer!

3. It is always preferable to have the funds ready with you, which may be in the form of cash or home loan approval papers, by your finance company or bank. Absence of outstanding payments or any economic constraints, will let you negotiate better and grab the deal as per your suitability.

4. It is always possible to negotiate on the quoted price. A good bargain would lead you to at least a 5-10% discount of what you might have expected. You just need to be informed about the feasibility of your bargain and the seller will concur. However, do not be shocked if the seller comes up with an alternative pricing scheme, as you must be respectful to their reservations and agree at a mutually pleasing deal.

5. Try to crack a healthy deal with the seller, so as to develop a healthy real estate presence. You must also take care of the seller’s satisfaction with the deal and ensure a win-win negotiation, respecting the objectives of both the parties.

Finally, always take care of the legalities with utmost care and attention. It’s a prerequisite to have an in-depth knowledge about your seller. The terms and conditions of the deal must be cautiously read, before coming to the eventualities. This will give you a sense of security and will be a shield from any future legal complications that may befall. A wise choice and thorough research will surely let you close a lucrative deal.

Best of luck!

Well, negotiating is an art in itself. Although it is hard to negotiate, learning this art can help us along the way. I have read the answers written by Mr Aaryan and Ms Shreya and these tips should be followed when you negotiate property price. But I will also add two-three tips which can help you negotiate with your buyers.

How to negotiate for property?

 1. Justify your point of view:

The first thing we learn for how to negotiate a property price, is to think about how can we justify our point of view. Compare the other projects and then try to find out the cons the project has. Even though the project is located in a prime location and it provides different types of amenities you should try to find out the cons. One con is enough though :P! Don't try to anger the builder though. I will provide an example:

I wanted to purchase an apartment worth Rs. 40lacs. But the apartment was located 10 mins away from the main road. I asked the builder to negotiate the pricing since the apartment is far away from the main road and it will take me a good amount of time to travel to my office.

2. Always have two-three options available: 

Before making a final decision try to finalize two to three offers. A good builder will be flexible enough to sell the apartments at a reasonable price. Before making an offer try to check out the market value of the property. This is a very important aspect of purchasing a new property. Share with the builder why this property is important for you and why you like it so much. If the seller doesn't negotiate you can walk away because you have some other properties you like. This will help you save both your time and resources.

3. Check the discount

Property at times is sold at discounts, even properties which are a little old are sold at a decent price. Look out for those properties and negotiate with the buyer. Well, we all know, that the value of the property depreciates as time passes.

One thing I will suggest is that while checking out the discount do calculate the stamp value, registration fee, and processing charges of the property. These points need to be taken care of when you see a discount is available. 

I would also suggest you avoid contacting agents and brokers. On the surface, you may feel that they are negotiating but they have contacts with the builder and they can lure you in to purchase a property. So, be a little careful while dealing with them.

The best way to know about the market value of property is check real estate websites and social media. Since these are vast platforms, and everything is visible there is a lesser chance of discrepancies. I hope you like the points I have written about negotiating property price.

When buying a home, the seller will probably assume that you would negotiate over the asking price. In reality, the majority of sellers price their homes somewhat above market value to allow for discussions. Knowing what to predict may help to make the procedure less stressful for you. So let’s see how to negotiate with builder on price.

What are the best real estate negotiation tips?

1) Never communicate without your agent's help

There's a large amount of real estate language to know, as you may already be aware. It's important to keep in mind that several of these concepts have legal standards and are commonly used in connection with one another. Insist on having any interactions with the seller handled by your agent. Your real estate agent is knowledgeable on the best ways to word inquiries and demands to protect your interests. Do not approach a seller directly.

2) Find out the reason for the seller's move.

If you are more knowledgeable about a seller, you can bargain even more successfully. Let's say your seller is moving since they just bought a new house. In that situation, requesting a concession might help you get a better offer. You will be unable to get repairs or improvements done before closing because the seller probably wants to leave the house as quickly as possible. Ask your real estate agent to research your seller on your behalf. Find out if the seller often favours a quick or slow ending. This is what you must keep in mind when negotiating real estate price.

You are now aware of how to negotiate with builder.

If you’re looking to buy a new property and don’t know the answer to how to negotiate flat price with builder, then I’m your guy. I recently purchased a duplex in New Delhi. I followed a few processes and was able to avail a good discount from the developer. 

To make it easier, I have added three key factors which will guide you on how to negotiate house price. You can find all the information below. Kindly scroll down to read.

How to negotiate with builder on price in India

• Do your Homework

First up, you must be on top of your game when it comes to the latest property trends in the market. Within your city and specifically in the area, you should be aware of all the real estate opportunities and their market value. A good buyer knows the seller and the property’s history. For example, if a society has a lot of unsold flats in the bucket, the developer would be willing to lower the prices. This will take some time, but a detailed understanding will help you to negotiate with solid points.

• Know the Range

It is crucial to know the pricing of any property. Figure out the launch price and the current value of an existing project. A good way to know the ground reality is to chat with the people who bought the property where you’re interested as well. They will tell you the pros and cons of the place. Moreover, with real anecdotes, you’ll be able to crack how to negotiate flat price with builder smoothly.

• Present your offer

As Aaryan mentioned, being upfront with your offer works well in the property market. The seller would feel that you’re not here to waste their time. A thing to take care of is to quote a price up to 15 per cent less than the pitched one. This is a safe range to play with. The dealer will take you seriously. In the end, you’ll have the chance of settling at a discounted offer of 7-8 per cent.

I hope this will give you a clear picture of how to negotiate apartment price.