Who doesn’t love a good bargain? From vegetables to jewellery to services, we Indians love to bargain and are pretty darn good at it! Why exempt home buying from the same?
Levity aside, there’s no reason why you shouldn’t buy your home at a fair price. Does that mean you have to haggle like you do at the vegetable market? Well, negotiating a good home deal is a whole different ball game and requires some thought and finesse.
Here are some quick pointers on what needs to be considered before negotiating a home purchase.
Knowledge of market trends
This should be every home buyer’s starting point. It’s always a great idea to know what you’re dealing with, especially since the purchase will require investing your life savings! First thing to figure out is whether you are in a buyer’s market (supply is higher than demand) or a seller’s market (demand is higher than supply). If it is a buyer’s market, it should give you significant leverage to negotiate.
It is also important to understand what the prevailing trends are in terms of prices in the localities in question. That will give you a good idea of what is a fair price and what is inflated.
Seek expert/intermediary assistance
You don’t have to go the course alone if you don’t want to. Developers usually handle sales in two ways – through in-house sales teams and/or brokers. You can seek the help of a credible broker if you’re up for paying them the required commission. They can help you navigate through uncharted waters and get you a fair deal.
Clear expression of interest
Before negotiating, take a moment to pre-empt the developer’s mind set. No builder is going to be willing to negotiate if they’re not convinced that you are serious in your intention to purchase. Ensure that you clearly express interest in purchasing the property in question. Also, make it clear that you have figured out the financial plan for the purchase (home loan/savings etc.). These aspects will encourage developers to make you a better deal since you are not perceived as a window shopper.
Negotiate for cash discounts
Developers are known to make additional offers to entice prospects into purchasing. For instance gold coins, cars or appliances are commonly offered. You can, instead, ask for cash discounts on the value of the apartment. That way, you don’t have to be stuck with a freebie you may not need!
Don’t time the market
We have all felt at some point or the other that we should wait for the market to be favourable. This thought does no good for anyone. Timing the market is a speculative move that may not always work out the way you expect it to. It’s best to make the commitment when you think you’re financially ready.
Consider all your options before deciding what approach is right for you. Your dream home doesn’t have to come at an exorbitant price – it can be reasonable and within your budget.