Buying Property, Negotiating is back!

Buying Property, Negotiating is back!

Why you can now negotiate again and how best to go about it. In the property market, buyers have been in a better position for a few months now.

All those who currently want to buy a property, do not have it easy. Interest rates and prices are high, as are the hurdles to getting a loan. And nevertheless there is the one or other ray of hope for buyers. Because in recent years, they have been in a worse position when negotiating. There were many interested parties, and if a buyer was not satisfied with an offer, there were numerous other buyers waiting in line. As a result, there was little room for them to manouver on price.

Now the tide has turned. There are more properties on the market again; properties that would previously have been gone in no time are now for sale for longer. At the same time, demand has declined. Sellers can no longer choose who they give their property to. So those who have found the perfect property can now be bold in negotiating again.

“Sellers must now agree to the conditions of the female buyers,” says German real estate consultant Alexander Lang

Sonja Kaspar, residential real estate expert at Otto, considers such low offers unserious. “The chances are high that sellers won’t even get involved in something like this,” and recommends starting with a ten percent discount and then meeting in the middle – she considers a higher discount than three to five percent to be unrealistic in most cases.

A comparison of asking and selling prices could provide some guidance. After all, most properties are advertised at a higher price than the one at which they are actually sold. There are figures on how high the discrepancy is here.

The world situation provides the best arguments for negotiations. Property ownership is expensive, you have to pay higher operating costs and interest rates, and there are many uncertainties, such as rising inflation. But the best starting point for negotiations is always the property itself, according to Kaspar. “You should look at it to see if it offers what is being asked for it.” If the price is non-negotiable, then possibly discuss the amenities. It’s helpful to know if a property has been on the market for a while, even then, there’s more room for negotiation. Well then, good luck! (Bernadette Redl, 26/2/2023)

Source: Der Standard – translated from the German for our English readers

Photo: Pixabay

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