{"id":7331,"date":"2016-10-04T01:25:49","date_gmt":"2016-10-03T17:25:49","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=7331"},"modified":"2022-07-01T04:04:09","modified_gmt":"2022-06-30T20:04:09","slug":"negotiation-tips-resale-flat","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/negotiation-tips-resale-flat\/","title":{"rendered":"Negotiation tips to get the best value on your resale flat"},"content":{"rendered":"
<\/div>
\"Play
Play the negotiation game right and you’ll reap the benefits!<\/figcaption><\/figure>\n

If you\u2019re on the lookout for a master class in negotiations, I\u2019d recommend looking no further than Tekka Market \u2013 those aunties could give Warren Buffet a run for his money. But what works in the wet market, may not translate so well to the property market. So if you\u2019re looking to get yourself a resale flat any time soon, here\u2019s our list of top negotiation tips that\u2019ll have you laughing all the way to the bank.<\/p>\n

Know your market<\/b><\/h3>\n

There are three main types of markets, and the type of market you find yourself in will affect your approach when negotiating:<\/p>\n

    \n
  1. Buyers Market \u2013 the supply of flats outnumbers demand. Here the buyer is king, so you have the luxury of making an offer below asking price, and perhaps even asking for a few goodies to be thrown in (maybe that nice dining set you noticed in the kitchen?)<\/span><\/li>\n<\/ol>\n
      \n
    1. Seller\u2019s Market \u2013 the demand for flats exceeds supply. Sellers will have their pick of buyers, so you\u2019ll have to at least match the asking price or, more likely, offer above what\u2019s asked to stand a chance amongst competing bids.<\/span><\/li>\n<\/ol>\n
        \n
      1. Balanced Market \u2013 demand and supply of flats are about equal, so there\u2019s less urgency on the Seller\u2019s part to close the deal. While you can try offering less than the asking price, there\u2019s less motivation for the Seller to accept your offer as they\u2019re likely quite confident of being able to secure a matching, if not better, bid down the road.<\/span><\/li>\n<\/ol>\n

        Research, research and…research<\/b><\/h3>\n

        A lot of preparation needs to be done even before you approach the proverbial negotiation table. As a rule of thumb, you should base your offer on the value of the property, not the asking price.<\/p>\n

        Research the recent transacted prices of similar flats in the area to get an idea of how much you should be paying (pro tip: <\/span>HDB<\/span><\/a> lets you to check the recently transacted prices of resale flats sold within a 200-metre radius of the one you\u2019re interested in).<\/span><\/p>\n

        Make sure you compare your flat with one that most closely resembles the flat you\u2019re interested in buying \u2013 there\u2019s no point basing your offer on the recent sales price of a 4-room flat, if the flat you\u2019re negotiating for is a 5-room.<\/span><\/p>\n

        Being able to justify your offer with hard facts puts you in a stronger bargaining position than if you just went in with a \u2018gut feel\u2019 of what the price ought to be.<\/span><\/p>\n

        Have a game plan<\/b><\/h3>\n

        Go into every negotiation assuming that the Seller won\u2019t accept your offer straight away.<\/span><\/p>\n

        Be prepared with a counter-offer if your first bid is rejected. Make sure you know the maximum bid you\u2019d be willing to pay on the flat, and if there any other concessions you\u2019d be willing to make in respect of the purchase.<\/span><\/p>\n

        Hire an agent<\/b><\/h3>\n

        Hiring an agent comes with a slew of benefits. It means you have someone who\u2019ll do all the homework for you like finding flats to view, evaluating the reasonableness of the asking price, and arranging for viewings.<\/p>\n

        But the best part is having someone handle the awkward business of negotiating a purchase price. If you\u2019re that person who stands in the corner while your friend haggles with the shopkeeper, this would be the option for you.<\/span><\/p>\n

        The downside, of course, is the added cost that hiring an agent involves – on average you\u2019ll need to pay your agent about 1 percent of the purchase price.<\/span><\/p>\n

        Show them the money<\/b><\/h3>\n

        Have your finances ready before you start serious negotiations with a Seller.<\/span><\/p>\n

        This means getting your loan pre-approved, or having your booking fee prepared. If you can communicate your readiness to the Seller, they might be willing to go with your offer instead of waiting for other as it shows you\u2019re serious about pursuing the transaction, and more importantly, that you\u2019ll be able to finance the purchase.<\/p>\n

        Ascertain the other party\u2019s interest<\/b><\/h3>\n

        Try and figure out what\u2019s motivating the Seller.<\/p>\n

        If the Seller\u2019s represented by an agent, a quick word with him might give you some insight into the Seller\u2019s reason, or preferences, in respect of the sale. Otherwise, speak with the Seller directly and see what you can glean.<\/p>\n

        For example, if the Seller is close to completing a purchase of another property, then a quick offer and a promise to move the buying process along quickly might sway the Seller towards accepting your bid over others.<\/p>\n

        To succeed in negotiations, you need to be able to offer the Seller something they want.<\/p>\n

        Practice your poker face<\/b><\/h3>\n

        The key to negotiations (and dating) is to act nonchalant \u2013 so try not to look too excited at your viewing. Act too keen, and the Seller will feel confident in sticking to his asking price, and won\u2019t entertain any negotiation.<\/span><\/p>\n

        Also, be sure not to give the Seller any indication of your walk-away price (i.e. the\u00a0<\/span>maximum amount you\u2019re willing to pay for the flat). Again, the Seller will find no\u00a0<\/span>incentive in accepting anything lower than the walk-away price you\u2019ve indicated, which means you may have talked yourself into paying more than you would have otherwise.<\/span><\/p>\n

        Be prepared to walk away<\/b><\/h3>\n

        Don\u2019t be cowed by aggressive sales tactics.<\/p>\n

        If the Seller insists on you making an offer, or pay the booking fee on the spot, without properly negotiating the price or giving you time to think it over, say goodbye, no matter how much you might love the place.<\/p>\n

        Best-case scenario: you call the Seller\u2019s bluff and can then take the time to properly discuss and negotiate the deal. Worst-case scenario: you\u2019ve lost the flat; but at least you save yourself the headache of dealing with an unreasonable Seller.<\/p>\n

        Don\u2019t lowball<\/b><\/h3>\n

        It\u2019s ok to make an offer that\u2019s below the asking price.<\/p>\n

        It\u2019s not ok, however, to lowball (i.e. make a ridiculously low offer).<\/p>\n

        A good rule of thumb is to pitch a price about 10 to 15 percent lower than the valuation of the property (or what your research tells you should be the value of the property). Go too low and you risk insulting and alienating the Seller, and losing the property altogether.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

        If you\u2019re on the lookout for a master class in negotiations, I\u2019d recommend looking no further than Tekka Market \u2013 those aunties could give Warren Buffet a run for his money. But what works in the wet market, may not translate so well to the property market. So if you\u2019re looking to get yourself a…<\/p>\n","protected":false},"author":31,"featured_media":54460,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53631,53643,57131],"tags":[],"persona":[],"class_list":{"2":"type-post","10":"entry","11":"has-post-thumbnail"},"acf":[],"yoast_head":"\nNegotiation 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