Negotiating a Deal When Buying a Home

When buying a house and land package, the only way you can negotiate is if you buy privately from the vendor, or through a real estate. Buying at an auction does not allow for any negotiation, as the price is set at the last bid - yours, if you win the bidding. Many people allow their emotions to cloud their judgement about whether a specific house and land package is a good deal for them. To prevent this, try and remain indifferent to the purchase. Never refer to the home as 'yours' or 'ours' until the ink on the contract is dry.

To get a good deal on a house and land package, never tell the agent what your maximum price is. Instead, start your offer low and gradually increase it if the seller does not accept. If you don't want to pay the selling price, be specific in the costs of what needs to be done and see if they will drop the price by that amount. The home may need repainting or have other obvious repairs needed. Get a quote and tell the owner what it is. This will sometimes budge a stubborn owner.

In Victoria you have to sign a Contract Note once a price and sale is agreed on and that is then a binding contract of sale. Make sure the Contract Note also has on it that the purchase is conditional on approval of your loan, on the sale of an existing property (if that is the case), and on a satisfactory property inspection.

Mel writes about house and land Melbourne, house & land packages and other home-related topics.