How to Negotiate with Desperate Seller

Before I start talking about negotiation strategy with a desperate seller, firstly how do you find a desperate seller? Usually these sellers advertise their units with phrases like fire sale, must-sell, and urgent sale. Their advertisement may tell you to bring a checque.

When a price is offer by a seller, try to offer a price that is 10-15% lower to see if the seller is willing to sell quickly. Normally, the seller will counter offer, which is probably his reserve price. You will need to decide quickly whether you want or not. If not, then immediately offer a price you are willing to pay.

Everything had to be done in very fast pace. So make sure you had done your hmework and calculations beforehand.

Tips When Considering Purchasing Property

Following are the questions or tips that you need to think about when considering a purchase of a property :

1. The amenities surrounding the property.
Is it near shops, markets, F&B outlets, MRT?

2. Near local Schools

3. Simple and Easy to Maintain

4. Easy to attract tenants
Is it near university, office buildings, beach?

5. Do you like the neighbourhoods if you live in that location?

6. The condition of property during inspection
What are the repairs needed?

7. Check the unit's past transactions to gauge whether the demand is strong and whether you have bargaining power

Applying for In-Principle Loan Approval from Bank

Following are the documents needed when applying for in-principle loan approval from bank :

• CPF statement for past 12 months

• Photocopy of Identity Card

• Pay slips for past 3 months

• Income Tax Statement for past 2 years

Payments needed when buying property

Following are the payments that are needed to be paid when buying a property (apart from mortgage loan) :

1. Conveyancing or Legal Fees
Usually about 0.5% - 1% of purchase price

2. Stamp Duty
First $180,000 - $1 for every $100
Next $180,000 - $2 for every $100
Subsequent amount - $3 for every $100

3. Agent Fee
HDB Flat - 1%
Private property - NIL

10 Tips on Buying Property

Following are 10 valuable tips on buying a property :

1. Be very disciplined and only look at something that you can afford.

2. Never reveal your budget to anyone.

3. If you are not a good negotiator, try NOT to negotiate face to face at the start. Get your agent to do it for you.

4. Never spend more than 30 minutes checking out the property. If not, you will reveal that you are very interested and will never get a lower price.

5. Be brave and decisive. Don't get fickle-minded. Or else good bargain will go away soon. At most, you lose only your 1% option fee if you wanted to get out later.

6. When buying unit with patios or rooftops, remember that they only cost half the per square foot price of the unit (as they are not liveable space).

7. Make sure your option - including any amended copy- is acknowledged by all parties involved.

8. Do not buy properties without viewing.

9. Be careful when buying unit next to a vacant plot of land because of the unblocked view. There is possibility of new development coming out of that plot of land.

10. Do not ONLY look at the last done price or the highest caveat price when you are checking whether your price is a good one. That particular transaction may be manipulated by the seller or that was a very unique unit.

Questions to ask when making a deal

Following are some questions that we need to ask when we are considering a deal :

1. Who are the partners (eg. developer)? Do I want to be partners with them?

2. What is the financing structure and is it favorable?

3. How competent is the management?

Quote of the Day

Life can only be understood backwards; but it must be lived forwards.