Having a place to call your own is the dream of many of us. For around 70 per cent of Australians, this goal of home ownership is a reality, according to data from the Bureau of Statistics.
However, taking the plunge and buying your first home can be a daunting endeavor, especially when you’re faced with one big challenge before reaching the end-line: negotiating the price.
Here are some useful tips to ensure you know how to overcome the hurdle of negotiating, like a pro.
Do your homework
When it comes to deciding on your target price – so what you’re hoping to get the home for – you first have to get an idea of the surrounding area’s value as well as that of the property. This means thoroughly comparing prices, looking at recent sales and asking as many questions as possible.
Adam Grant and Adam Galinsky from the Northwestern University, who have done extensive research on effective negotiating, also suggest having a fixed walkaway price, over which you won’t go. Setting out clear boundaries before actual negotiations will give you the confidence to base any offer within your limits.
While it might seem more natural to be guarded with the information we provide to the other side of negotiations, it actually works against you in this case. Grant suggests that from a psychological point, you’re more likely to have a positive outcome if you reveal something of yourself.
Now this information doesn’t have to relate to the actual negotiation and simply allows you to set a positive tone and build rapport. Sharing some of your hobbies or interests will make you seem more personable and trustworthy, therefore increasing your chances of coming to an agreement.