Negotiate well to get the
best deal
- Mr. Ramesh Nair, MD (West India) Jones Lang LaSalle India
It is possible to negotiate with residential property developers or promoters. As house sales continue to look sluggish in many parts of the country, developers are becoming more open to a bit of creativity on their stated terms.
Room to negotiate..!
How can you, as a buyer, put your best foot forward at the negotiation table? Above everything else, the Scout's Motto holds true:
You should be conversant with comparable sales in the project's vicinity and know how long the project has been on the market.
It is important to establish what the launch rates were, how they have moved since then and what the current demand for apartments like yours is in the stated locality.
You should also find out by word of mouth how much the developer/promoter is willing to negotiate. Typically, developers make decisions on pricing based on how a particular project is performing, as well as on how they are faring in general.
If you are interested in an apartment but feel you can't afford it at the quoted price, have no apprehension. Many sale prices today are quoted prices, and there is room to negotiate.
Offer freebies..!
While developers today are willing to relent off the radar, they are averse to reducing the official quoted price below a certain point. This is partially because they don't want to advertise the fact that certain customers paid less than the others. They are often likelier to offer freebies or incentives.
If possible, try to find a group of buyers and negotiate for a bulk discount. Keep in mind that that if you have the ability to pay a larger upfront amount, you have extra bargaining power.
Pre-approved loan...!
Ensure that you have obtained a pre-approved loan from a home finance company for a home loan based on your income. A loan pre-approval will show the developer that you are serious. Let him know that you are prequalified for the amount you are offering.
If sales volumes have dropped and there are many unsold apartments in the vicinity, point this out to the developer and use the fact to your advantage. An unsold apartment will cost the developer more over time than lowering the price and selling the unit quickly.
If market prices have fallen since the property was completed and several units remain unsold, a larger discount may be possible.
Best project, Best price..!
Submit an offer to purchase the flat even if you are unsure whether the developer will accept the offer. Some developers will not begin negotiations until you make a firm offer.
The best strategy is to drive around the locality you are interested in and get the best prices from each developer. Then shorten the list to the options you are really interested in and go on a result-oriented, two-day property safari.
Let each developer know that you are looking for the best project at the best price, and that you are definitely buying that weekend. Let them know that that you are weighing their offers against the other ones available.
Remember, without making a formal offer, there is really no way to know how low a developer will go on his price. While making your offer, volunteer information such as where you work and how much you earn to assure the developer that you can afford the property. Always offer to close the deal fast - make sure you mention this during the negotiation. Also ensure that you get the developer to commit first.
Src: ET
 |
| Ramesh Nair, MD (West India) |
- Mr. Ramesh Nair, MD (West India) Jones Lang LaSalle India
It is possible to negotiate with residential property developers or promoters. As house sales continue to look sluggish in many parts of the country, developers are becoming more open to a bit of creativity on their stated terms.
Room to negotiate..!
How can you, as a buyer, put your best foot forward at the negotiation table? Above everything else, the Scout's Motto holds true:
You should be conversant with comparable sales in the project's vicinity and know how long the project has been on the market.
It is important to establish what the launch rates were, how they have moved since then and what the current demand for apartments like yours is in the stated locality.
You should also find out by word of mouth how much the developer/promoter is willing to negotiate. Typically, developers make decisions on pricing based on how a particular project is performing, as well as on how they are faring in general.
If you are interested in an apartment but feel you can't afford it at the quoted price, have no apprehension. Many sale prices today are quoted prices, and there is room to negotiate.
Offer freebies..!
While developers today are willing to relent off the radar, they are averse to reducing the official quoted price below a certain point. This is partially because they don't want to advertise the fact that certain customers paid less than the others. They are often likelier to offer freebies or incentives.
If possible, try to find a group of buyers and negotiate for a bulk discount. Keep in mind that that if you have the ability to pay a larger upfront amount, you have extra bargaining power.
Pre-approved loan...!
Ensure that you have obtained a pre-approved loan from a home finance company for a home loan based on your income. A loan pre-approval will show the developer that you are serious. Let him know that you are prequalified for the amount you are offering.
If sales volumes have dropped and there are many unsold apartments in the vicinity, point this out to the developer and use the fact to your advantage. An unsold apartment will cost the developer more over time than lowering the price and selling the unit quickly.
If market prices have fallen since the property was completed and several units remain unsold, a larger discount may be possible.
Best project, Best price..!
Submit an offer to purchase the flat even if you are unsure whether the developer will accept the offer. Some developers will not begin negotiations until you make a firm offer.
The best strategy is to drive around the locality you are interested in and get the best prices from each developer. Then shorten the list to the options you are really interested in and go on a result-oriented, two-day property safari.
Let each developer know that you are looking for the best project at the best price, and that you are definitely buying that weekend. Let them know that that you are weighing their offers against the other ones available.
Remember, without making a formal offer, there is really no way to know how low a developer will go on his price. While making your offer, volunteer information such as where you work and how much you earn to assure the developer that you can afford the property. Always offer to close the deal fast - make sure you mention this during the negotiation. Also ensure that you get the developer to commit first.
Src: ET
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