Negotiation Tips For First Home Buyers

Here are some useful tips when you enter into a negotiation to buy your first home:

• Be coy about your finances. Revealing how much you’re willing to spend may prompt the agent to push the price to the top end of your price range.

• Play it cool, even if you fall in love with a property. Showing too much enthusiasm may make the agent think you’d be willing to pay any amount.

• Show you’re serious by having your loan pre-approval in place so the seller knows you’d be able to follow through on your offer.

• Don’t be overly influenced by ‘sweeteners’. Sometimes owners offer to throw in white goods, or other perks, to push up your offer. But usually these goods aren't worth the extra you'd pay on your mortgage.

• Think about what else you have to offer. Are you buying in cash or with a large deposit? Are you happy with a long – or short – settlement time? These sorts of things can be appealing to sellers and are worth emphasising in your offer.

• Take your time to consider your options. While the agent may push you to finalise the deal, think it over carefully before you make a higher bid.

At the end of the day, always remember that you are the customer. You need to be in control of the negotiation. Walk away if you don’t feel right. There will be other property available for you to chose from in the future.

We’re here to help you

Dealing with banks can be a stressful experience but rest assured that our mortgage broker based in Glenelg (but our mortgage broker services the entire Adelaide Metropolitan area) can help you make the right decision about your mortgage. We will guide you at every stage of your loan process.

Contact us on 08 8376 0455 or drop into our office at 593 Anzac Highway, Glenelg SA 5045.

Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.