How to bargain when buying an apartment? Now there is high competition in the market among those selling real estate. Many houses have been built in the last decade. Due to the economic conditions prevailing in the country, the ability to purchase expensive property, including housing, has decreased. In any case, you need to bargain correctly when buying a home.
Analyze
The first thing to do before buying a property is to decide how much you can pay for it. It doesn’t matter how the payment will be made: you can pay in cash, purchase a mortgage or other types of loans. In each case, you need to decide how much maximum you are willing to give. Set yourself up for the most realistic conditions, as you may come across a seller who refuses to reduce the price when buying an apartment.
Once you have resolved the cost issue, you need to analyze the situation on the real estate market. To do this, you will need to study the advertisements and select from them those that fit your criteria (conveniently located, have a suitable price). Pay attention to whether the advertisement indicates the seller’s willingness to reduce the price. Some do not provide such information.
Important! If you are determined to reduce the price of housing, then when meeting with the owner, do not talk about the fact that you have a high level of income, a prestigious job and expensive property. In this case, the seller will refuse to reduce the price of the living space, since he will be sure that you are a wealthy person.
Be careful with the realtor, because it is in his interests not to reduce the price, but to increase it. His income is directly proportional to the price of the property sold. It is much more profitable to create the image that you are a person from an average family who does not have large sums of money.
When to bargain
How to bargain correctly when buying an apartment? It's worth choosing the right moment. When the seller is ready to easily reduce the price of an apartment, the discount is already included in the final amount. This can be easily verified by examining advertisements with similar characteristics.
It’s rare now that you encounter homeowners when purchasing a home; this is mostly done by realtors. The likelihood that the owners will bargain is higher than if they are professionals. This is most often due to the fact that the owners do not know the real estate situation well and want to conclude a deal as quickly as possible.
Adviсe
When you have chosen an apartment that suits you in all its characteristics, you begin to think about how to reduce the price when purchasing. It is easier to bargain on the secondary market, since houses that were built recently are valued much more.
When we bargain, we need to point out the shortcomings that the apartment has, and in a tactful manner. Your goal is to point out the defects to the owner, but you want to purchase it at a lower price. The disadvantages include:
- the living space is located on the lowest or highest floor of the house;
- no repairs have been carried out in it for a long time;
- There are tracks for trams and railway transport nearby;
- there is a road near the house where cars often travel;
- the apartment has low ceilings;
- poor room lighting;
- the main systems (heating, water supply) are in poor condition;
- the building in which the apartment is located is dilapidated.
The interests of the seller must be taken into account. Often a person sells one apartment and at the same time is looking for another. After you have negotiated, you need to give the seller time to make another deal and move out of the apartment. If you are willing to make concessions, the likelihood of bargaining increases.
Pay attention to the desires of the seller: sometimes he needs to sell the property as quickly as possible. He will probably agree to complete the transaction promptly, by bargaining. You need to discuss with the seller his intentions and build on them.
How to prepare properly?
Do they immediately agree to inspect the proposed option? Do they start haggling from the door? No. Each buyer should prepare for the auction by collecting information about the apartment, the area in which it is located, the owners and the reasons that prompted them to sell.
How long have they been selling it? How to find out all of the above? You can call the owners, ask them about everything you are interested in, and also find out the exact location of the apartment. Knowing the address, you can determine it using Yandex or Google Maps . Using these services you can find out what is nearby. They analyze the situation on the market, looking through the ad databases, noting for themselves apartments in the same area and their prices.
All this information will be useful later, as it will allow you to think through the directions of bargaining and select adequate arguments for it.
Attention! Do not bargain during a telephone conversation with the owner. Why ask for a price reduction if there was no inspection? How can you explain your request? Lack of money? Why then decide on such an expensive purchase?
What to consider before viewing a home?
They do not agree to view the apartment until they answer the following questions:
- How much are you willing to pay for real estate, what budget is allocated for its purchase, or what amount will the bank give on credit to purchase an apartment with a mortgage?
- How much does the apartment you like in the ad cost? Is it worth the money the owner wants for it?
- How much money is missing?
The answer to the first question depends on the buyer’s budget, and the other two are answered by knowing the price of the apartment they like. An online calculator may be useful to calculate the average cost per square meter on the secondary housing market in the selected neighborhood.
The “strongest” arguments that have helped buyers more than once are also learned before viewing the apartment:
- Cheaper apartment in a building nearby.
- Carefully study the description of the apartment on the website/in the newspaper. It is better to memorize it so that while watching it you can compare the information from it with the realities of life. If discrepancies are identified, there is a reason for bargaining (the kitchen area is 8 square meters instead of 9 from the advertisement; the metro station is not 5 minutes, but a quarter of an hour).
- Before viewing, get acquainted with the banks' offers on deposits and interest rates on them. The most favorable conditions are subsequently announced to the seller if he refuses to throw off a couple of tens of rubles, but at the same time mentions that he is not in a hurry for money. On deposit, after a couple of months, the owner will return the amount of the concession in full.
- Before watching, learn what unreasoned bargaining is. Sometimes it is more useful than a reasoned one. If you look at some kind of housing in an advertisement, but the price is too high, they think about how much they wouldn’t mind paying for it. Then they calculate the difference, and it is its size that is announced in unreasoned bargaining as the desired concession.
What to consider when viewing housing on the secondary market in order to save on its purchase?
When you like the apartment during inspection, they think through arguments for bargaining. You can refer not only to shortcomings (first or last floor, proximity to tram/railway tracks, problems with natural lighting, etc.).
You can act more cunningly, but this will require a trusting relationship with the owner. After talking with the seller, find out the answers to your questions:
- How long does it take for the owner to sell the apartment?
- Does the owner have any special “wishes”: receiving the entire amount in cash as soon as possible, quickly completing the transaction due to the need to travel abroad, etc.
- Was the redevelopment legalized (what are the risks of buying real estate with illegal redevelopment?).
- Are there “natural” encumbrances: debt for electricity, water, light, etc. (read about the consequences of purchasing an apartment with debt on utility bills here).
- Has the owner found a suitable option for leaving her ex-husband?
Having analyzed the answers to the questions and found the seller’s “weaknesses,” they form a list of arguments, so that they can then voice them one by one during the bargaining during the next inspection of the apartment.
Read more about what you need to pay attention to when buying an apartment and what to ask the seller about in our article.
Helps reduce costs
You should know what you can offer the seller so that he agrees to negotiate. Often discounts are given when payment is made in cash. It is better if the transaction takes place without an intermediary, as it will take less time and be more profitable for the seller.
Tell the owner that you will handle the paperwork that does not require his presence yourself. You can also offer assistance in organizing the move and finding a new home. Emphasize that you are willing to give the seller the necessary time to find suitable housing.
After the seller has agreed to negotiate and you are satisfied with the final amount, it is better to immediately enter into an agreement. Otherwise, after some time, the owner may reconsider the offer and refuse the discount.
The contract must specify the cost of housing, and if you paid a deposit, indicate in what amount and under what conditions it is transferred. Indicate the period within which all paperwork must be completed when the former owner leaves the apartment. Sanctions are prescribed that will be applied to those who do not follow the rules.
You should know the difference between concepts such as advance and deposit. In the first case, the amount acts as an advance payment for a transaction that will be concluded in the future, that is, the funds are reserved for you. In the case of a deposit, it serves as evidence that the parties have agreed to enter into an agreement for a purchase and sale transaction.
Can the price rise during trading and how to protect yourself from this?
This often happens if there are two or more applicants for one apartment. The seller can arrange a secret or open auction among potential buyers, promising to sell the apartment to someone who agrees to pay extra above the stated price.
A way to protect yourself against a sudden demand from the seller for additional payment after you have already agreed on everything is to enter into a deposit agreement. It is better to do this through a notary. After paying the deposit, the seller will be obliged to fulfill his part of the transaction according to the terms of the contract. If he refuses, he will return the deposit to the buyer in double amount.
Tricks
When you see that the owner does not intend to bargain, for clarity, you can take a list of your options and inspect the apartment with it, saying that you need to buy it urgently, so choose the one that is cheaper. At this point, you can add that you would buy this particular option if it were a little cheaper. If the seller wants to complete the transaction as soon as possible, he will make concessions.
You can, in the presence of the seller, contact the residents of the building in which the apartment is located and find out what disadvantages it has. This way you will have an advantage in reducing the price.
When you find defects in the apartment that the seller did not point out, ask for a discount. The main thing at this moment is not to “go too far”, otherwise the owner may become defensive and refuse to conclude a deal with you. All negotiations must be conducted in a confident and calm manner. Be sure to check the market situation before purchasing, because the main strength is knowledge.
How an apartment inspection will help you reduce the price
Take with you a piece of paper with the addresses of other apartments and prices. Sometimes look at your watch, complaining that you don’t have enough time to visit another 4–5 houses where the price is lower. It is better to do this manipulation in the middle of inspecting the apartment.
What not to do.
Finally you have entered the apartment of your dreams!
- Don't jump for joy or show too much emotion. For example, phrases such as “Oh my God! This is what I wanted!”, “What a view from the window!”, “Excellent renovation!”, “My wife will really like my gift!” etc. speak in your mind. Out loud - only nods, the words “fine, good, understandable, clear.” You can insert them into the seller’s pauses during his story. If you don't control your emotions, you won't be able to count on a discount. The seller has just received new compliments from you about his brainchild - this is what he will focus on. Don’t be surprised if, after your praise, the owner says that you misunderstood him and the price is half a million higher.
- Don't insult the quality of the apartment.
- Don't criticize dirt, smells, repairs, or anything else that you don't like but can be fixed. Remember that a person lived here and in his soul considers his home to be one of the best.
- Don't interrupt while the seller is praising his apartment.
What do we have to do:
- Look around the apartment. When demonstrating, ask leading questions. For example, about bathrooms, you can ask, when were the pipes changed in the whole house, and in the apartment in particular? Where are the nodes and how to get to them in case of a breakthrough? This is a very important question, since some owners wall up problem areas before selling.
- Nod understandingly. Let the seller forget for a while that you are the buyer, then he will share with you the problems associated with the renovation and the reason for selling the apartment.
- Say words of regret about the lack of any amenities or, for example, plastic windows. Talk as if to yourself.
- Create the impression of a person walking alone around the store and choosing a product.
Your goal is to show the seller that you are a real buyer with money here and now. The property has been on sale for a long time and it is unknown when another real buyer will appear. You are willing to pay and become the owner if the owner reduces the price to a certain, reasonable amount.
