Tips for real estate negotiation on the buyer's side (2nd part)
In the first part of the advice for effective negotiation when buying a property, we discussed the right way to assess the real estate market and when the negotiation starts. Here we are going to focus on pure negotiation: what amount for the purchase offer and how to get the best price.
The fundamentals
Each sale or purchase is unique because each seller and each purchaser is unique. However, the market in which the sale is located has its specificities that it would be harmful to deny.
All in all, the seller has a fairly limited margin of manoeuvre. It is the market that imposes its laws!
The purchase offer: what amount?
The start of the negotiation, strictly speaking, begins when the offer is written. Assessing the amount of this amount is important, because all the negotiation will result from it.
The first question to ask yourself: what is the value of the coveted property?
Evaluating the value of a property:
Ask your notary to give you real selling prices for similar properties in the same neighborhood. Check if the prices shown are net sales. If this is the case, 5% must be added to these prices. Attention: it is very difficult to know if these prices concern apartments that needed more or less heavy work. For information: the renovation of an apartment is estimated at around €1500/m² while refreshing work can cost €300/m².
At the same time, you can conduct an online assessment (see here). Finally, check out the Real estate barometer for notaries. You will find the average prices per m² by municipality and department.
Offer amount:
You have valued the apartment of your dreams. Are you going to offer a lower offer? Significantly lower? Are you ready to pay the asking price? Get as much information about the seller as you can. Is he in a hurry to sell? Is it a succession? Who are the decision makers? Why are they selling? etc. It's up to you to feel how much sellers could agree to lower their price.
Continuation of the transaction
Negotiating up to 5% of the sale price is very common, between 5 and 10% less frequent and above 10% rare. A negotiated purchase offer is rarely accepted directly. It will often result in a counter-proposal. So aim below the price you are willing to pay. And be careful, when the market is in high demand and has few suppliers, you have to know how to react quickly and sometimes buy at the price.
After several months of research (in a very targeted neighborhood), I decided to call on Parlez moi de Paris to get out of this spiral of visits that were not successful. An investment that proved to be very effective since I made an offer at the end of the 5th visit.
Great experience with Parlez moi de Paris. Patrick is a professional who accompanies his clients very well in the search for their future place to live. Very attentive, he creates a favourable environment that encourages exchanges with the various stakeholders.
We have established a partnership with Parlez moi de Paris for all the acquisition searches in Paris of our clients that we cannot support. I guarantee the seriousness, the sympathy and the expertise of Patrick and his teams. The research mission is carried out with efficiency and kindness. I recommend.
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