Knowing how to negotiate on house and land packages Sydney-wide isn’t something to go into unprepared. On their own, house and land packages are stressful. There’s a lot to consider and it’s understandably overwhelming.
So, we’re starting out with the basics of how to negotiate on house and land packages and why you need a buyer’s agent to negotiate on your behalf.
Know What You Want
The key to getting what you want in a negotiation is knowing what you want. So, the first step in negotiating house and land packages Sydney-wide is knowing what you’ll be asking for.
Perhaps you want to pay less for a specific piece of land (as is often the case). Maybe you want a certain add-on that doesn’t normally come with the base price of a house and land package. You might even be negotiating with a lender about interest rates or payoff schedules.
It’s essential that you figure out your maximum budget, your expectations and your must-haves versus your “would be nice” list.
At the end of the day, you shouldn’t expect to get absolutely everything on your dream list. Remember, there are many moving parts when it comes to house and land packages and not everything will be up for negotiation. So, you’ll want to keep an open mind about things like timeline and potential adjustments - especially if you want to meet certain government grant or budget criteria.
However, knowing when to put your foot down and when to go with the flow is key. In other words, know what you must have and know what you can live without.
When you work with a buyer’s agent, they can help you nail down what you can realistically expect and what you should be able to fight for in a negotiation. After all, it won’t be much help if what you want is totally out of left field. It’s a huge reason why so many buyers opt to work with a buyer’s agent to help them negotiate their house and land packages.
Stick to Your Budget
But keep it to yourself. There are countless negotiation strategies out there but, in general, you never want to show all your cards. So, don’t let the opposing party know what you’re actually willing to spend and start out with an initial offer that’s slightly lower than you’d be willing to pay.
Keep in mind that you also don’t want to offer a low-ball figure, whether that’s an outrageously low price or an aggressively specific ask. Keep it in the ballpark, so to speak, but don’t offer what you’d be happy to spend right out of the gate.
However, make sure you’re happy with your actual maximum budget since a good outcome would be paying this much. The cherry on top would be an even better deal. But, you shouldn’t go over your maximum budget. Make sure you know where you’re willing to draw the line.
This part can be complicated because, especially when it comes to house and land packages, Sydney owners can become emotionally attached to their potential dream home or to an unrealistic outcome.
It’s the reason why working with a third-party (such as a buyer’s agent) to help you with your negotiations is highly encouraged, which leads to our next point.
Hire a Buyer’s Agent
Buyer’s agents not only help you find and vet the best house and land packages Sydney has to offer. But they’re also expert negotiators who won’t be as emotionally involved in the property-buying process.
Buyer’s agents are legally bound to advocate on your behalf and can be the difference between paying too much and getting a deal that seems too good to be true. In fact, at Wealth 360°, we’ve even been known to make money for our clients thanks to our negotiation strategies.
Long story short, working with a buyer’s agent means you have solid strategies on your side and an expert negotiator to advocate on your behalf who can stay cool, calm and collected. While, of course, your buyer’s agent is rooting for you and definitely cares about the outcome, they’ll be less emotionally attached, allowing them to think clearly and reason effectively.
All in all, no two negotiations are the same. So, your best bet is to have a real estate expert on your side who knows the ins and outs of the market and can confidently approach any negotiation for you.
Looking into house and land packages in Sydney? Contact Wealth 360° and we’ll help you through a foolproof negotiation strategy.