It is a dream of all to live in their own home, a home is where we like to live comfortably and peacefully with our loved ones. Owning a home empower us to save money and time by not seeking a new house every time after a contract expires. Buying a home is not shooting fish in a barrel, you have to be as sharp as tack.
It has been seen many times that whenever a property buyer decides to buy a residential property or office spaces he/she initiates with negotiating a price of property. Negotiation is a bigger term, other than pricing there are many broad terms that has to discuss with a seller before finalizing any deal, so price negotiation can be postponed. Price negotiation is generally done for products which have standard features, for example, products like furniture it has standard feature and its utility are very well known, you can initiate your deal with price here. But property is a non-standard product you cannot initiate its deal with price.
Problems associated when negotiation begins with price
Payment Terms –
If you have closed your deal and have decided to buy a house with some amount say 50-60 lacs, then at some point it may fragile your deal, let suppose in case if token money is already paid then chances of back out will be lesser.
Don’t Disclose your Budget Amount
Real Estate agents are smart it is a known fact, avoid disclosing your budget amount in a first meeting. As per psychology standard if he knew your budget is, let suppose 1 crore it concludes you are willing to pay such a big amount and he may try to sell you a house that may not worth your actual budget. Better you can tell them the range you are ready to spend and ask to show property accordingly.
Bearing of Miscellaneous Charges
It has been seen many times that a buyer has bought a resale property and after possession he found that all the articles/accessories like fans, tube light, curtain rods are taken away by the seller, these are appearing very small thing but if one goes to purchase such article in the market a high amount needs to be paid.
Take decisions smartly –
If you are buying property first time and feeling difficulty in evaluating the exact cost of property then assess property with SWOT analysis.
SWOT Analysis – SWOT analysis is nothing but Strength, Weakness, Opportunity and Threat, this term is widely used in marketing but here we are discussing for assessment of property value
Strength – In terms of property, your property strength would be nearby convenience like public transport, schools, grocery shop, banks etc. These amenities will always be a contributing factor in keeping property value higher.
Weakness – Weakness are those factors which depreciate property value –
- Improper location
- Less Rental value area
- Declination in city population
- Near busy highways
Opportunity – Opportunities for your property may be anticipation of commencement of some public sector projects or any other undertaken that may attract investors to invest within your reach
Threat – Threats are such surrounding factors which are hazardous to your property value.
- Flooded area
- Slum area
Above approaches can be considered for making decisions in critical situations. It is also suggested to inkling from familiar or experienced person who would have undergone the above mentioned situations. Don’t Miss: Common Issues Faced While Buying a Home India