Buying property is one of the biggest and most important decisions in your life. And with a hefty average price at $656,800, you cannot afford to make any rookie mistakes. If you are keen on a particular property, get the real estate agent to send you the sales contract. Your conveyancing solicitor can help you review it, so that you can better negotiate for the property. Here are some strategies to help you do just that.

Offer A Lower Cooling-Off Period For A Price Reduction

If you're going the private treaty route, then you have a specified cooling-off period based on the state you're in. For example, the cooling-off period in NSW is 5 business days, while it is 3 business days in Victoria. Some sellers who are looking to quicken the sale may agree to a price reduction if you are willing to waive off or reduce your cooling-off period. This could be a good bargaining chip if you're looking to negotiate a better deal. Make sure you talk this through with your solicitor and get professional advice before you make this offer to the seller.

Reduce The Settlement Period

A settlement period usually extends for 6 weeks once a property sales contract has been exchanged, which can be time consuming for sellers who want to speed up the sale. To make sure your negotiated offer is accepted, you could consider reducing the settlement period after communicating with your solicitor.  While a certain settlement period is necessary, you can offer to reduce it as long as you do your due diligence on the property beforehand. This includes title search, land rate and tax checks, and obtaining unconditional financial approval from your lender.

Offer To Pay A Higher Deposit To Secure The Property

Since deposit amounts and how the seller can use the money can be negotiated, you can use this tactic to make sure your offer is accepted – even if it is lower than the asking price. For example, while standard deposits are 10 percent, you can increase that amount and give the seller authority to use the money a certain way during the settlement period. This can make a big difference especially if the sellers are looking to make an offer on another property and your deposit money can help them cinch their deal. Always talk to your financial advisor and solicitor before authorising any payments to protect your own interests.

Follow these tactics in your quest to negotiate for a property in Australia.