Buying a home is an exciting time! We understand that it requires a lot of prep work not only to ensure that you get the best price possible, but also to slow down the effect of diminishing returns. When embarking on your house hunt, here are a few vital points every home buyer should keep in mind to get properly ready for the home buying and negotiation process.
1. Compare prices in the surrounding area
Find out about recent deals in the immediate area, after settling on a property that interests you. Whether they are higher or lower than the price quoted, you will get a better idea about market prices which acts as a good starting point for your own negotiation. Note that it will vary with each property, and sale transactions for identical flats are most unlikely to be valued similarly.
Additionally, past transaction prices under each property listing are readily available not only in the Ohmyhome app, but in other platforms as well. Our past transacted data shows all past transacted properties with similar square metres within the same area of 200 meters.
2. Research all the financial considerations
You don’t have to be an expert at financial calculations, but it doesn’t hurt to understand the basics such as the Buyer’s Stamp Duty. Getting familiar with all the financial costs involved in the proposed property acquisition will only help you derive at the final sum required.
This will not only enhance your confidence during negotiations, but you will also stand to be in a better place with a working knowledge about the various steps involved in the home buying process. You will gain the ability to ask better questions and act as an active participant in the transaction.
3. Use our affordability calculator
By now, you should have a better idea as to what you can afford, as you learn about the flat you are viewing. The amount you need to purchase a flat may include cash and CPF savings, CPF Housing Grants, and the housing loan you can secure. Ohmyhome’s Affordability Calculator lets you find out whether the property you are considering is within your budget. You have the freedom to choose the right property that fits your budget.
4. Stop giving in to hard-sell tactics
Don’t forget to ask the seller good questions to better understand why they are selling the property! Maintain fairness and be genuine in your approach, so that you can build trust in the long term. Also, be assertive and communicate clearly what you are seeking and what you want. But if you ever feel pressured by the seller or agent during the course of a price negotiation, prepare to stand your ground and walk away, if need be.
On the other hand, don’t forget to allow the other party time to consider your offer. While negotiating hard on your original offer, you should take your time in replying to their offer or counter-offer seriously too.
5. Stay in control
Remain level headed during the negotiation process- you got this! Do note that Singapore is still very much a buyer’s market, so there is always room for negotiating the best price. Have patience when negotiating, but don’t hesitate to seal the deal once given a counteroffer close to your ideal target.
Remember, negotiation favours the prepared! Hunting down that one perfect property that suits all of your housing needs is a challenging process, as most are not without their flaws. But having patience in the negotiation process will eventually pay off, once you do find the desired property of your choice! After understanding what matters most personally, you will be able to prioritize your housing needs more effectively.
Looking to buy a resale house? Start your home search by browsing thousands of genuine and unique listings available on our platform. If you require more assistance on buying your flat, feel free to find out more about our Fixed-Fee Agent Services by calling 6886 9009 today!