Searching for a second-hand home can be a budget-friendly solution but without negotiation, you could be missing out on savings. Whether a first-time buyer or an investor, knowing how to assess a property, negotiate wisely and close at a fair price can save you thousands. Here’s a step by step guide to help you navigate the buying process if you’re planning to buy second hand home.
Note: If you are looking for a house or second-hand property in Bangkok and its metropolitan area, Bangkok Assets Company is a trusted provider with over 14 years of experience, ready to assist and support you.
Review the Market and Establish a Budget
To understand the market trends in your target location is must before embarking on house hunting. Knowing average property prices, demand levels, and potential appreciation rates can help signal to you whether a seller’s asking price is reasonable.
Check the prices of other second-hand homes in the area.
Consider also expenses like renovation and legal fees and taxes.
Make a realistic budget tailored to your financial capabilities (mortgage eligibility, etc.
With a clear financial plan, you are in control you will not overpay.
Be Sure to Examine the Property Closely
Whereas new homes are spotless, second-hand properties often show signs of wear and tear that you don’t notice at first glance. A proper inspection is important to figure out the home’s true value and if it needs to be repaired.
Key Areas to Inspect:
-Integrity of house systems (plumbing, electrical, roof, framing, foundation)
– Plumbing and electrical systems
– Conditions of flooring and ceilings
– Security amenities (locks, gates, cameras)
– Mold, signs of water damage, or pest infestations
A professional inspector can help you discover hidden defects that may help you negotiate with the seller to reduce the price.
You have data up to October 2023.
It can be beneficial to know why the seller is listing their home. Some common reasons include:
Motivated seller — If sellers are relocating for work or family reasons, they may be willing to negotiate quickly.
Financial distress — If the owner requires cash urgently, they may be willing to accept a lower offer.
Longer time on the market — Homes that have languished on the market suggest room to negotiate on price.
Knowing the urgency of the seller gives you an edge to negotiate better terms.
Make a Strong Initial Offer
Your initial offer establishes direction for negotiations. Don’t go too low, as that may alienate the seller, but try to negotiate just under your best number to give yourself some bargaining room.
Make their offer based on market data and home inspections.
Use any needed repairs or renovations as reasons to support your price.
Expect counter-offers and be flexible.
If you accompany a well-researched and reasonable opening offer, you signal to the seller that you’re a serious buyer.
Negotiate Beyond the Price
Negotiating for additional benefits can help enhance your deal, even though the price is a key element.
Negotiable Factors:
-Furniture/appliance inclusion
– Asking for repairs prior to buying
– TO COVER LEGAL AND TRANSFER FEES
– Making the closing date work for you
If the seller’s price is non-negotiable, ask for extras that are of value to the home but won’t cost the seller anything extra.
Leverage a Real Estate Agent
If you’re uncertain about negotiating, an experienced real estate agent can help make a huge difference. Agents know the ebb and flow of the market, are great negotiators, and can talk to sellers with professionalism.
Many assist with paperwork and other legalities.
They may be able to uncover hidden deals that are not publicly listed.
Experience that keeps them from making expensive mistakes in negotiations.
While hiring an agent does come with a fee, their negotiating skills can often save you more than what you would pay in commission.
Be Ready to Walk Away
The power to walk away is one of the most effective negotiation tools. If a deal’s not to your liking, or the seller’s unwilling to move despite major flaws, don’t be coerced into agreeing.
There will always be more decent second-hand home deals to be had. If you turn down an overpriced property, sometimes that will force the seller to regroup and return with a more conciliatory offer.
Final Thoughts
When negotiating for a second-hand home, it is essential to be well-versed in the market to use patience, and ultimately negotiation strategies to help seal the deal. You can get the best deal without compromising on quality by researching prices, inspecting the property, and making informed offers. For those looking to buy a second hand home, preparing yourself with the right knowledge will help you make a successful purchase at the best price.
