Nowadays, the supply of real estate is greater than the demand.

There are many ways to bargain when purchasing a property. However, before you buy a property, it is important to do your research and learn the following facts:

How much are property prices in the area you plan to buy?

What is the reputation of the builder in the marketplace?

How many years has the company been in real estate transactions?

What facilities are available in this particular area? 

How much does it cost to pre-launch a project?

Why are the flats being sold at a higher price by the builder?

 Learn about the influencing factors that may have contributed to price appreciation.

You can bargain more to get a better deal, but it is important to remember the negative aspects of the property. This may be a plus for bargaining.

Most builders will accept a reduction in their property prices but not necessarily declare it.

Factors that affect bargaining

1. Builder/developer’s market reputation – An established builder will sell his project at the launching stage, so there is no room for bargaining.

2. In the event of a recession, you will have more bargaining power if the market/economy is in good condition.

3. It is important to determine whether the developer used his own money or borrowed money from a bank to develop the project. He can keep the property if he uses his own money and may not be willing to negotiate. He would want to sell the project quickly if he borrowed money from a bank. In this case, he may be more open to negotiations as interest rates will continue to increase the construction cost. It is important to determine if the land is owned, leased, or purchased.

People don’t do enough research before buying. They also don’t spend enough time researching the developer and his past projects. They are not able to negotiate well because they lack research.

Art of Bargaining

Pay attention and take the time to verify facts. Do not speak up during negotiations. Take notes and make sure to give a realistic rate. Keep a copy of your sanction letter and a chequebook handy, so developers don’t underestimate you.

Opportunity

1. Obtain a provisional letter of sanction from your bank. This will prove to developers that you are serious about business.

2. Make a group of property buyers. This group could include your family members, colleagues, or friends. Developers prefer group bookings because they can sell more flats with one deal, and members get a good discount.

3. Decide your budget.

4. Take a look at the area where you plan to buy the property. Ask people living in the area to determine the current market price of the property. You can bargain with the builder if you discover that many flats are vacant because of a slump in the market.

5. Property fairs and property carnivals are great places to get amazing discounts. These are the best places to look at all properties in your area.

Bargaining Procedure

Let’s say you decide to buy a flat in a specific apartment. You are now sitting across the table of the builder. With a chequebook in your hand, you ask the builder to give you his “best price” (maximum price for the flat). It would help to quote a realistic but lower price to the builder when he quotes the minimum price.

Offer a realistic price when you are bargaining. Don’t offer a price that is impossible for the builder. After you have presented a lower but realistic price, you can tell the builder that you will reconsider.

Keep your options open, as you want to buy the property and not defeat the builder by bargaining. Be flexible and Accept the offer if you are happy with it. If you and your family love the flat and can afford it, don’t hesitate to accept the offer. Take a step back, analyze the situation, and then work according to it.