Purchase Price Negotiation

Discussion in 'The Buying & Selling Process' started by Sam654, 9th Dec, 2020.

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  1. Sam654

    Sam654 Active Member

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    I've found a property in Adelaide suburbs not far from the city centre and am thinking about getting some assistance in price negotiation. Would anyone have any advice or recommendations?

    The property is on the upper end of my budget AND needs quite a bit done to it, so I don't want to blow the budget on purchase and not have any left to renovate.

    I'm after a professional to negotiate price on my behalf and perhaps do an appraisal too.

    Thanks
    Sam
     
    Sam654, 9th Dec, 2020
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  2. willair

    willair Well-Known Member Premium Member

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    Just do a search within the site for a person that posts under the name of DaveM,I think they cover your investment area..good luck..
     
    willair, 9th Dec, 2020
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  3. Trainee

    Trainee Well-Known Member

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    A few things you want to decide tho.
    What is your maximum budget?
    Is this realistic based on comparable sales?
    What are the cost of renovations.

    What is your REAL maximum? What is the price that, if the property sold at or above that, you think 'well, I wasn't willing / couldn't pay that anyway, so fine'?

    What is the price that, if it sold at or below that, you think 'I would have been willing to pay that!'
     
    Trainee, 9th Dec, 2020
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  4. spludgey

    spludgey Well-Known Member

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    Put a 48 or 72 hour time limit on any offer you make!
    Offer a few percent less than you are willing to pay.
    You don't need a professional to negotiate on your behalf.
    Good luck.
     
    spludgey, 9th Dec, 2020
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    If your budget is tight you may be unable to afford a buyers agent who can assist with these services. You seem to be seeking a licensed agent ie a buyers agent. Contact some from REBAA or REISA and see if they are happy to be engaged for a fixed fee / service basis. Generally they base their fee on a package that includes property search etc.
     
    Paul@PAS, 9th Dec, 2020
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  6. Sam654

    Sam654 Active Member

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    My hope was that a pro negotiator would save me more than their fee.
     
    Sam654, 9th Dec, 2020
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  7. spludgey

    spludgey Well-Known Member

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    In Adelaide, I think that's certainly not a given.
    Also bear in mind that they're not directly dealing with the vendor, but either with the real estate agent or the solicitor, both of whom do this for a living.
    If there is competition, it's likely that a BA won't really save you much, if anything.

    Often, the important thing isn't the total price either, but the out of pocket expenses. Those will undoubtedly be higher if you engage a BA!
     
    spludgey, 9th Dec, 2020
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