The Secret to Saving Lakhs when Buying Your Dream Flat in Pune
One of the biggest mistakes you could make while buying a new flat in Pune is paying too much for your apartment. But how do you go about negotiating a better price and how low is too low?
Here are some useful tips to give you the edge during those all important negotiations while buying a new flat:
Be sure you know your numbers before you even begin to look at new flats. What is the maximum amount you can borrow comfortably?
That doesn’t mean how much the bank will lend you. It means how much can you realistically afford to repay each month. Don’t borrow any more than this, even if it’s offered. You may be able to buy a bigger flat, but if you are under major financial stress you won’t enjoy it.
Once you have an idea of your maximum budget you can get to searching for suitable apartments. This brings us neatly to the next important negotiating tip i.e. Dig for information.
Try to get a feel for the sellers position. Are they eager for a quick sale so they can move, or can they wait till someone comes along and pays the asking price? Finding out as much as you can about the seller gives you an idea of how likely they are to negotiate.
Don’t be afraid to go in low:
Some new buyers end up paying a high asking price for their new flat because their first offer is to high. If a new flat is on the market for 70,00,000 and your first offer is 69,00,000 you’re only saving 1,00,000 and it indicates you really want the new flat. The seller may say there’s no negotiating on the asking price.
The industry “standard” is to knock of somewhere between 10-15% of the asking price. This depends on how the market is performing generally, how many offers are already on the table and how much you really want the new flat.
If you offer 60,00,000 for the new flat and the seller wants a sale, they’ll try and push you up but may still offer you a nice saving somewhere between the two figures. Judge the reaction to your offer and make your next move from there. Buying new flat is a little like playing poker and instinct and luck does
play a part.
Don’t be bullied, just as you want the best price, so does the seller. They’ll also have some negotiating tricks of their own so don’t feel pressured into a rash decision.
They may tell you there’s lots of people already interested, they might say another couple have put in an offer too, or they could say they don’t want to drop the price at all.
Don’t be pushed and don’t pay anymore than you feel happy with. If it means you walk away from the new flat so be it. If the seller wants a sale that much they’ll soon be chasing after you with new enthusiasm.
Choose the right loan for your dream flat
Buying a new flat is expensive, but even if you miss out on saving money on your purchase during the negotiation phase you can save thousands by getting the right loan for your dream flat.
Remember buying a flat is a huge financial commitment. A few thousand knocked off the purchase price could save you thousands in interest repayments over the years. Arm yourself with as much information as possible, don’t be pressured into bad decisions and don’t be afraid to walk away from a deal.
You’d be amazed how quickly you’ll stumble into another “perfect” dream flat at the right price. Take your time, think long term and most importantly leave your emotions at the door. If you don’t, you could end up paying for it decades later!