How to negotiate the price of an apartment?
13 February 2019
The basic premise when buying an apartment is its price. It is worth considering how to negotiate to buy them for the lowest amount possible? Bargaining is a good option – there is no doubt about it. A lower price of a flat means less financial burden in the form of a loan, which means more money in your pocket.
The starting amounts of real estate are usually inflated on advertising portals. According to the NBP, flat sellers issue ads with a higher price than the real amount of the transaction. The actual reduction may be very different, depending on the condition of the flat, location, size and the market on which the flat is sold. According to the data, the disproportions between advertising and transaction prices range from a few to a dozen or so percent. As many as 8 out of 17 cities for which the NBP provided price data, the difference exceeded 10%.
In which places are the biggest negotiations?
The highest negotiated amounts can be made by buying a flat on the secondary market in Gdynia (24%) and Warsaw (22%). In these places, prices in ads are over 20% higher than final and final prices. The average reduction on the secondary market was 11%. Approximately on the property issued for the price of 300 thousand PLN 20,000 can be negotiated zł. However, the case only affects buyers who are looking for a used flat. It is relatively hard to make a cut when buying a new flat – this average is about 4% according to NBP research.
How and when to negotiate?
Whoever does not bargain, usually overpays. It is always profitable to negotiate the purchase price of a flat, and with such a significant sum, each percentage will be noticeable. If we incur a lower cost of buying a flat, it will affect the lower loan. Consequently, the commission will also be lower, as will interest.
Already during the first viewing of real estate, it is worth discussing the issues that will reduce the price. For example, if we manage to negotiate a price of 270,000 PLN not 300,000 at first PLN, we will not only save 30,000 PLN, but also an additional 17.8 thousand. PLN, which are the result of lower costs around loans. Price lower by 30 thousand PLN actually gives a savings of 47.8 thousand. zł.
How and when should the price negotiation process lead to the largest possible price reduction?
If we make appropriate efforts in negotiating matters and we give arguments, which the owner did not even think about, we will get a lot of cash.
Here are some useful tips and information that you can use when negotiating.
observe how long the offer is published – if the flat has not found a buyer for a long time, there is a chance for a lower price;
get knowledge about shaping the prices of similar flats in the area;
more willing to negotiate are the sellers of large apartments that require renovation and, above all, those who care about time. If the owner wants to finalize the transaction quickly, you can use it by proposing his own price with a guarantee of speed in completing the formalities;
make an accurate inspection of the apartment, try to be meticulous – the easiest way to negotiate in the case of visible shortages, pointing to the owner any cons: for example, peeling paint, u-plates, panels requiring replacement, or an apartment suitable only for general refurbishment;
use facts such as 3-4 floor in the block without access to the elevator, the top floors of the skyscraper, low standard of the building, unfinished staircase, no garage, basement or balcony, a problem with the garage, view outside the window, surroundings or noisy neighbors;
remember to emphasize your strengths, for example, cash payment on hand (especially if the owner wants to sell the apartment quickly), a quick decision to buy, the option to postpone the deadline for the owner to leave the premises;
The phrases like “this flat is very cool, but we are going to see similar, at a lower price”, “we like it very much, but we are still wondering about the one we have just seen. It was much cheaper. ” The longer the owner of the flat and waits for the buyer’s decision, the larger price discounts he is willing to give. It is worth using if you see that the advertisement has been published for a long time. Remember, as a rule, time works in favor of the buyer;
It’s easier to negotiate a more favorable price when, instead of making a claim, we will be friendly to the seller and make a good impression on it.
As a negotiator, you must be sure of your reasons. Be confident, firm and composed. Operate specific sums. Try to strike a compromise with the other side, while feeling that you have his arguments in mind. Buyers and sellers usually meet between their starting positions. The seller (artificially inflated) will minimize the price, and the buyer will raise his (highly understated) offer;
The seller can be urged to say that your offer is valid only