You’ve found a property and now you want the best possible price for it. No one wishes to step over their budget when buying home, particularly when you could be paying for it decades later.

Negotiating effectively with the seller is an important part of saving money on your property purchase and these strategies should give you the winning edge.

1. Press the right buttons

Find out as much as you can about the vendor, including their motivations for selling. Negotiating is often more than just about the money – it may be that the vendor is eager for a quick sale, unconditional terms or a long settlement. Don’t just rely on the information supplied by the agent, do your own research to find out as much as you can about the vendor’s position: how long the property has been on the market? Has it been passed in at auction? Is it a deceased estate? Is it tenanted? Have any other offers been made?

Tailoring your offer to accommodate the seller’s situation will strengthen your negotiation position.

2. Know the market

Aim to have a good knowledge of the property market in the area you are buying into. This means attending auctions and purchasing comparable sales data from research firms so you know what similar properties have recently sold for. Going into a negotiation armed with the proper research gives you a good foundation from which to make a realistic offer.

3. Show you are serious

Organise a home loan pre-approval to demonstrate your finances are in order and you are a serious buyer. There is no cost involved to obtain pre-approval and as your mortgage broker we can guide you through the process, helping you to understand how much you can afford to realistically repay each month.

4. Don’t reveal too much

Revealing your maximum budget or how much you have fallen in love with the property will play against you in negotiations. While it is important to have open communication with the real estate agent and seller, it doesn’t mean revealing all your secrets.