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Negotiation items on every purchase

Discussion in 'The Buying & Selling Process' started by Leo2413, 9th Aug, 2015.

  1. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Just thought I'd share a list of items I make in order of least important to most important when I'm planning a negotiation for a deal. I haven't listen them in any particular order.

    1. Price
    2. Amount of deposit
    3. Where the deposit should be held
    4. Date contract becomes unconditional and deposit balance to become payable
    5. Who should get the benefit of interest on deposit
    6. Prior access of tradies, consultants etc
    7. Final settlement date
    8. B&P clause, Subject to finance, subject to satisfactory due diligence
    9. Delayed settlement
    10. Vacant possession etc

    (these are just mine, but would love others to add more that I didn't mention)

    What I do is put them in order of most important to least important. Then I decide which ones I am 'happy' to concede, and which ones I can't. For me it helps to give me some starting point. Of course it always depends on the market. Not all of those will apply to every deal to.

    Would love to hear from others on points to negotiate.

    Cheers
     
    Last edited: 9th Aug, 2015
    Peter L likes this.
  2. FireDragon

    FireDragon Well-Known Member

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    Good list. I normally negotiate the price and prior access of tradies if renovation is required.
    I will also ask if they can open inspection before the settlement for getting a tenant.
     
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  3. jaybean

    jaybean Well-Known Member

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    Is there really room to move on #3? Doesn't it always go to a trust account?
     
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Yeah most of my transactions have been where the deposit has been entered into a trust. On two deals we had some create financing (private negotiations between myself and the vendor) where we offered to pay slightly more if the deposit can remain in our account for an extended period. It suited our purposes at the time and the vendor was happy with the small reward for it too.

    But yes most of them have been held in trust.
     
  5. jaybean

    jaybean Well-Known Member

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    Oh I see. To remain in your account. I thought you meant seller negotiated to have it right away!
     
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  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    haha no. Not a chance in hell.
     
  7. Be Developer

    Be Developer Property Developer Business Member

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    Furniture package/appliances package on OTP purchase.
     
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  8. Peter L

    Peter L Active Member

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    Great list - how successful you been able to put in special conditions (e.g. subject to financing, pest and building inspections etc.)?
     
  9. Leo2413

    Leo2413 Well-Known Member Premium Member

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    HI @Peter L , It really depends on the market and my strategy to a deal. Sometimes I will put in conditions I don't really want in there like B&P especially if I know I am tearing down the place. I do that so when I have to concede something in a negotiation or show how 'serious' I am I will 'unhappily' say ok i'll take away the B&P condition for X in return, which is what I really wanted from the beginning :)

    But generally with clauses like Finance and B&P usually there is no objection unless the market is really hot (but I never buy in a hot market anyway). I have had clauses for DD on development sites which were no issues, but I think they do give some leeway on DD for development sites as they know many developers will need to do DD anyway.

    So by and large in markets that are not really hot, I would say most of the standard conditions are not really a major problem.
     
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