Are you planning to purchase a house and expect good discount on it?
Not sure how to go about negotiating with developers?
Read this blog till the end. I've shared effective negotiation tips, which you can spin when negotiating with developers for good discounts on your dream house.
The fluctuating Indian economy greatly influences the real estate industry. Waning property value can favour property buyers [You] - you can expect a good discount on the interested property.
Now, let's discuss a few best ways to negotiate with developers for the best bargain on the dream property.
Developers with liquidity crunch due to unsold properties in many parts of the country are more open to offering good property discounts to buyers. Leveraging the circumstance, You can bargain and avail good deals on your dream house - Words from many industry experts.
" Due to sluggish property sales, leading to more inventory of new property outnumbering buyers, leaving large spaces for negotiations."
Awareness of the current market can favour you during your negotiations with the developers -You get to hold the ball in your court. It would be best to analyse the prices of similar properties in the locality. You must understand the time span the properties have been under for sale - properties that remain unsold for a more prolonged period have higher possibilities of sticking lowest price deals with the developer.
Pricing analysis is critical; compare the launch price with the current price of a property.
Approach a real estate broker who can clarify the best discount developers offer on their properties. Contacting people who have recently purchased houses in the project can give an accurate picture of the discounts that can be expected from the property developer.
Cash Flow and the number of units to be sold are the two factors that play a significant role in the price negotiation with the developer. Developers trapped in a property's unsold situation are likelier to extend discounts to clear the inventory and generate cash flow. Says an industry expert.
Once you get a clear picture of the discounts you can expect from developers. Contact a developer's sales team and convey that you are more likely to purchase a property immediately. Developers are more likely to extend incredible discounts to potential prospects.
Scout around and go on a property hunt. Find properties of your choice with the best prices from many developers. Let the developers know you are scouting for an attractive price and you wish to buy quickly. Hint the developer that you are comparing properties to select one with the lowest pricing.
You can start your negotiation with a 15% discount on the quoted price. However, you must be willing to settle on a 7%-8% discount. Says, Managing Director of a Real Estate Organisation. He adds, "Shoot your offer and let the developers decide if they will accept it. A few developers will not bargain until you make an offer."
Developers aim to sell their properties as quickly as possible, and if you are willing to make an initial upfront payment, you can certainly expect a good satisfying bargain. Rest assured, bring cash to the negotiation table and walk home with a great deal on your dream house.
Pre-approved home loans from housing loan corporations or familiar banks can work in your favour. You can have chequebooks and proof of approved loan. Indeed exhibits your seriousness in purchasing a suitable property at a sensible price. With such promising circumstances, You can negotiate and strike a better deal with the developers. You can even arrange a discount of 9% to 10%.
Real Estate sales works on two sales models -Developers have their own sales team, while some real estate brokers help to sell properties quick and easy. Many developers often incorporate both methods. Real Estate brokers are aware of the current market and can help you find genuine properties faster and also help you with home loans. Some brokers offer all these services on a "Zero Brokerage," which you can monetise to your advantage to find the best property at the best cost.
On the flip side, blindly trusting brokers can be risky; many fake brokers out there can take you on a ride, mooch money, and leave you no man's land. It is wise to analyse the market yourself because buying your dream home can be a lifetime investment. With trustworthy online real estate brokers, you can expect discounts anywhere between 5-15%.
Group Buying is another negotiation method you may consider while negotiating with developers. In the group buying method, you can team up with other potential buyers and negotiate with the developers as a group. A group negotiation is known to be much easier and yield better deals as compared to individual negotiations, says an industry expert.
Irrespective of your negotiation approach, understand that if your estimation is practically possible, the price is on par with the industry standards, and developers don't mind negotiating. Many developers have a cut-off price below, which they might be averse to reducing the cost. They may not desire to publicise that some buyers have paid less than them; they maintain their rationality. To avoid such difficult circumstances, they may extend freebies or incentives. - An Expert shares.
Developers aren't the haggling kind; summarise your negotiation points into a single offer with a take-it-or-leave-it approach. Developers are unlikely to agree to the lower price to which you want to bring them down. In such circumstances, let developers know that you will get back to them after a price analysis before making any decision.
Wait for a week or two while analysing the property price. And don't be surprised if some developers call you to show their willingness to close the deal at your offered property price or a price that mutually benefits you.
Reducing buyers' rates increases unsold property numbers. Developers aim to sell quickly-sell unsold properties by extending exciting discounts to property buyers. Buyers can take advantage and negotiate a good deal for their dream house.
Buyers must analyse the market thoroughly and understand the current properties' prices before negotiating with developers, which can work in their favour. A well-informed customer can come to terms much quicker than those unaware of the market.
Developers and buyers must seek the help of real estate brokers who are well versed in the current market, both the developer's and buyers' sides. These brokers can help buyers and developers speed up the property's sales.
Many online real estate brokers offer zero-brokerage helping buyers save money spent on the brokerage reducing the overall property costs.
Real Estate Brokers extend good negotiation with developers, which favour the buyers.
A. Yes, getting a good discount on the property you want to purchase is possible.
Approach real estate brokers aware of the current market and they can help you find properties in line with your requirements with the best discounts.
A. You can start your negotiation with a 15% discount, but developers can extend up to 7%-8%, which is the industry's standard.
A. Scout around and identify the properties that best fit your requirements. You can expect good deals from property developers with a liquidity crunch and unsold properties for a long duration.
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