The pandemic has skyrocketed the price of real estate but being informed, knowing what we want and what the seller wants can be key at the time of purchase. Do you want to get a reduction in the price of a home? Then read this note!
The COVID-19 crisis has disrupted the entire real estate market, which is recovering very well, with high demand but also with higher prices. The key is the negotiation at the time of purchase and that is determined based on the information that the buyer has at the time of being with the seller.
There are key factors that must be known to win and be able to negotiate the price of a home today. Next, we will detail you one by one.
You may also be interested New construction or second-hand housing?
Study the real estate market
To know if the apartment to buy has an adequate price, it is necessary to carry out a previous investigation on the current market prices. We recommend looking for the price of a home in that area, making a comparison with properties with the same characteristics as our objective to weigh the issue.
In addition, you can turn to other real estate agencies or use the virtual quotes of many websites to compare the prices of a property. It never hurts to ask for help from a real estate expert, at GLM we can help you in this search.
Ask for the complete information of the house
It is important to know how long the property has been for sale, if the price has been lowered before or not, how many people have seen it, if there are other offers. It is advisable to consult with the neighbors, gather information to know where we stand at the time of negotiating the price of a home.
Find out if you have debt
Asking for a simple note of the property from the seller to check if you really have no debts or liens or mortgage debts is key before sitting down to negotiate the price of a home. A simple note can be requested from the Land Registry for less than 10 euros.
Thoroughly review the house
If the property needs some type of reform, it is a letter in favor to lower the price with the seller. That is why we recommend thoroughly inspecting each environment so as not to miss any detail.
In this case, it is also advisable to visit the house accompanied by an expert in spare parts, so as not to overlook anything and be able to negotiate in a better position.
Ask if it has an energy certificate
New construction homes that have been built after 2020 must include energy efficiency measures established in the Technical Building Code. Second-hand homes often require very expensive repairs in the short term to adapt to them.
That is why we suggest asking about the situation of the property regarding this issue so as not to have headaches in the future and because the price can be lowered in the face of any repairs that must be done afterwards.
Study the location
Not only the geographical area counts when negotiating the price of a home. In addition, we must evaluate the amount of sun it receives, the orientation and the height. If the floor is very dark, for example, it is a fact that should be considered when negotiating the price.
In large cities and coastal areas it is more difficult to negotiate due to the high demand for this type of property. In rural areas or less demanded areas, the opposite happens.
Another factor that is related to the location and has an impact on the price is access to communications and services in the area.
Appear perfect solvency
If we want the seller to take us into account to accept our offer, we must demonstrate that our economic situation is optimal and that we have no debts of any kind.
It is key to establish a budget beforehand, try to know our maximum price taking into account the mortgage (if we request it) and the extra expenses that the deed entails.
Now, how do you negotiate the price of a home?
After collecting all the information detailed above, we will begin the negotiation process. This process usually lasts between 3 and 4 days and between each offer and counter offer there should be no more than 24 to 48 hours.
Discounts of up to 10% can be achieved, remember that the seller will always want to sell at the highest price and the buyer will always want the lowest price. The meeting point between these two extremes will be the result of the art of negotiation that we establish.
It is more likely to obtain a reduction in the price of a second-hand home, since those of new construction usually have closed prices. In addition, we must try to be cautious but not wait too long and another buyer will come before us.
Personal factors to consider:
- know how to argue
- demonstrate security
- know how to dialogue
- Being able to hear the seller
It is also advisable to sign a reservation or deposit contract if we are interested to prevent another buyer from getting ahead of us.
We should not put pressure on the seller, who is generally more urgent to sell the house than we are to buy it, and know how to wait for him to obtain better results.
The revival of the real estate market
The market was able to redirect itself after the pandemic, reaching levels higher than 2008. In September of this year, 53,410 real estate operations were closed throughout the country. In addition, the number of mortgages granted rose to 42,547, an absolute record.
Predictions for 2022 state that sales will be focused on the big cities and on the Mediterranean coast. Experts recommend fixed-rate mortgages given the current uncertainty of interest rates in the market.
On the other hand, the price of housing is likely to rise next year between 5% and 6% and will be conditioned by:
- The evolution of the pandemic and possible outbreaks
- The shortage of supplies.
So it will be a matter of analyzing the context and the market in order to get a reduction in the price of a home. We hope we have helped you with this guide of tips and recommendations.