26 May 13
Investment property is still one of the key wealth building vehicles available to people with some spare capacity who want to start an investment portfolio, or add to an existing one. There are all kinds of variables that affect the return on investment of individual properties, but one of the most important has little to do with the actual property. The negotiating skills of the purchaser can affect the price of the property by thousands of dollars.
The key to getting the best deal is to spend time researching, investigating and preparing for the purchase, before taking any direct action to acquire a property. There is a whole range of issues to be resolved before getting to the point of making an offer, but once that point has finally arrived, there are other things still to consider.
Don't Back Away from Due Diligence
The investor should know the length of time the property has been on the market, and if there were any advertised price changes during that time. Knowing what the previous purchasers paid for the property, and the median sale price and historical capital growth of the region where it is located is also essential information.
What are comparable properties in the area selling for and how much are they bringing in on the rental market? Does the chosen property lend itself to renovation and would this be profitable? Based on all this information, the investor should be able to nominate a market value. Before doing their own negotiating, however, they should check with All Residential Real Estate who have years of experience in this area.
Leave the Negotiations to Experienced Professionals
After doing all this due diligence and investigation, the investor has not even made an offer at this point. This is why most people prefer to have a professional real estate expert find their investment property and negotiate on their behalf. By this stage the investor should have in mind the highest price they are willing to pay. This is the time to make an offer, and this is where most untrained people lose money.
Professional negotiators like All Residential Real Estate do these kinds of deals every day, and provided they have instructions from the investor regarding contract conditions and price, they are best left to do their job. There will always be some haggling back and forth as each side tries to get the best price, but at some point, common ground will be found. A contract will then be prepared.
Any changes to terms and conditions in a contract should be made in writing and signed off by all parties to indicate agreement. The purchaser should make sure they understand everything, and if they don't, ask for clarification. Again, this is an area where a professional agent can get the best outcome for the client and add thousands to the investment value of the property. Go to www.realestatewollongongnsw.com.au for additional information.