Is a property asking price always negotiable?

The asking price of a property is often the starting point for negotiation, and it is common for buyers to look for a discount. Negotiating a discount is part of most property transactions, and the worst that can happen is that the seller says “no”.

According to agents from the Seeff Property Group, there are some factors which buyers need to consider if they hope to get a discount on the seller's asking price.

Firstly, determine whether there is actually an opportunity for a discount. If you are for example purchasing off-plan, then the prices are usually fixed, but there may be a special deal as part of the marketing of the development.

Instances where you could perhaps get a discount on the asking price include where the property is older and requires upgrading and renovation. Then, there might be an opportunity to get a discount, provided it is not already discounted.

If the property has been on the market for some time, then there might be an opportunity to get a discount on the asking price. It will, however, depend on whether the seller is prepared to drop the price, or would rather wait for another buyer.

Cash usually tops all other payment methods. If you are paying in cash with no contingencies attached to the offer, there may be an opportunity to get a discount as the seller could bank the money quite quickly.

If you do not have to sell a property first, and you already have finance in place, then it may be possible to secure a small discount. There should, however, be no other contingencies as the seller will weigh the cost of having to wait. Pre-approved finance with a bigger deposit might also sweeten the deal.

If the market is slow and there are many properties on the market, and the seller is motivated to sell as soon as possible, there might also be an opportunity to get a discount. Again, the better the price, the higher the chance of getting your offer approved.

Bear in mind that in the event that the seller receives other offers, then it is unlikely that a discount will be contemplated unless the buyer’s offer is significantly better, a cash offer for example. If you really want the house, then you will likely need to either offer the full asking price, or possibly even more to secure the property, says Seeff.

Ultimately, getting a discount is about being a knowledgeable and strategic buyer. Do your research, understand the seller's situation, and use every tool at your disposal to make a well-reasoned and confident offer.

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