Negotiating a price - some tips

Be realistic
If the property is advertised for €350,000 there is no point  offering €250,000. This just wastes everyone’s time. Aim for about 10-15% lower than the advertised price. If you like a property , don’t wait for someone else to bid on it. Then you’re in a bidding war! Get in first and low and if the seller is eager to buy it could happen very quickly.

Don’t give away your hand
Do not tell sellers just how much you have to spend. Remember, this could change too depending on your checklist for example, if repairs need to be carried out on the property.

Developers
In new estates developers are often eager to close the deal when they see eager buyers. Try not to look too eager. Some developers have authorised agents to give away allowances. Try to find out exactly how much you can push them. A white goods allowance might be a good deal but it might be conditional on you closing the deal within four weeks. Can your solicitor do the work in that time? Can you arrange finance in that time? DON’T sign anything there and then. Go away and think about any offer for at least 24 hours. It’s a strange anomaly in Ireland that if you take out a loan from a bank you have a ‘cooling off’ period to change your mind – that doesn’t apply once you have contracts signed for buying a property – an altogether bigger decision.

Early Closing
You might be able to negotiate a lower purchase price if you are available to move in quicker than other buyers. If you have your finance pre-approved you are in a stronger position to negotiate this. Remember that your approval in principal is not binding on the bank and they can revoke their offer at anytime if circumstances change. Don’t be too hasty in committing to things you cannot honour. If you agree to a four week closing period this is likely to be incorporated into the contracts and there might be penalties for every day you go beyond this closing date. Interest rates on these kind of penalties can be up to 14% and might eat away at any negotiated savings if you cannot keep your promise.

Chains
If you are not selling to finance your property you are not in a chain. If your sale falls through for any reason you might have to delay the purchase. A seller will be attracted to a buyer who is not part of a chain. Chains are more common in England than Ireland but are being increasingly common here as people are less eager to avail of expensive bridging finance. Do you need bridging finance? Find out how much it will cost and factor this into your calculations.

Know the market
Use the list contained in this guide, check out privateseller.ie and other property websites to see what other properties are selling for in the area and keep these in mind. Privateseller.ie has a new Estivalue service where you can check for free the average guide price for properties selling in your area.

Signs
Try to find out how long the property has been on the market. If the property is for sale for some time then the seller might be more eager to sell.

Don’t argue
If you and the seller cannot agree – just leave it at that. Move on and put that property onto the list of “maybes”.

The Extras
Here is a handy tip to have up your sleeve. Say for example, you and the seller are €5,000 apart on a price; you could offer to pay the extra €5,000 if all the fixtures and fittings are included in the deal. Bear in mind that if appliances are already in the property they are likely to be in working order. Remember to include a list of what is and what is not included. Alternatively you could offer to split the difference.  If there is a €5,000 difference in price between you and the seller remember that the seller wants to sell the property – that is why they have it on the market. Ask if they will split the €5,000; 50/50.

Don’t walk away from a good deal for the sake of upgrading a car for six months.