The real estate market in Cambodia is fluctuating, which makes price negotiation on properties very challenging. When buying a property, the seller expects that you would haggle over the price. In reality, most sellers price their homes above market value to allow for discussions. Both buyers and sellers must understand the local market thoroughly and be ready with winning negotiation tactics.
One of the best ways to lock Cambodian property deals at the best price is to seek guidance from real estate companies. IPS Cambodia is a reputable real estate agency that provides clients with the best property prices through its extensive network and experienced agents. We also offer property management, valuation, and legal assistance services.
The tips mentioned below from our real estate experts will help you to negotiate a beneficial deal in the Cambodian real estate market.
Tips To Negotiate
Your negotiating power should be good to make the most out of the deal. Here are some tips that could help you up your game and save you a lot of money on real estate investments.
Researching the Property
- Consider the purchase price, current market value, and prices of similar recent homes.
- Analysing the project’s and builder’s strengths and shortcomings is vital.
- Digging through the property history could tell you about the time the property has been on the market, the number of times it has been put up for sale, and any price changes.
- If the property has been listed for a while, you can use this knowledge to bargain for a higher price.
- You should get a house inspection before real estate purchase. The results of an inspection may be significant in deciding the final selling price of a home. The home will be checked by a professional looking for foundation cracks and issues with the HVAC system.
- The inspector will then provide you with a copy of the report. You can ask for a better price from the seller if the home inspection results uncover any flaws that are a deal-breaker for you.
Evaluating the Seller
The seller is the most significant party in the deal from the perspective of the property buyer. Therefore pay attention to their needs first. Find out what is driving the agent to sell by conducting research together. You can learn about the seller’s situation and motivations, as well as their potential bottom line and level of pricing flexibility. For instance
- If the seller needs to move from Cambodia to another nation immediately, you could provide reduced settlement terms. Alternately, propose paying a 30% or 50% downpayment up front and the remaining balance over a longer time frame.
- Suppose the seller lacks knowledge of the current Cambodian real estate market or has inflated expectations regarding the property’s value. In that case, they might be more amenable to bargaining if they understand it better.
- An emotional relationship with the property may make the seller less willing to accept a lower offer. But, if money is their primary motivation, they might be more amenable to compromise.
- If a property has been on the market for a while or has undergone several price reductions, it might be a sign that the seller is more eager to sell and may be more open to haggling.
Assessing the Market
If you are familiar with the local market, you will be well-prepared to negotiate with the developer. You should research the costs of nearby properties that are similar to yours.
Try to determine whether the house you want to buy is in a seller’s market or a buyer’s market. The property has multiple offers since many purchasers are interested in it. You will have less negotiation leverage in that situation. If the home is in a buyer’s market and your local real estate market is slow, you have more wiggle room to negotiate concessions, a lower price, and renovations.
You can see from this how amenable the vendor is to negotiate. You might get a fantastic deal if the house has been on the market for a while and the seller is motivated to sell. But if the vendor has already received several offers for the property, you will have to make a better offer.
Preparing for Negotiations
The key to getting a better deal on real estate in Cambodia is to be prepared for negotiating. After researching the property, evaluating the seller, and assessing the market, the most crucial step is to set a spending limit and adhere to it. It will help you keep within your budget and prevent overpaying for a property.
Include the features of the property that are most important to you, such as the location, size, and facilities. It will assist you in deciding what concessions you are willing to make during talks. Be pre-approved for a mortgage if you intend to finance your purchase.
It can help you determine your financial capabilities, demonstrate to the seller that you are a serious buyer and also help you assess your financial capacities. Choose a qualified real estate agent with Cambodian real estate market knowledge. They can assist you in negotiating skillfully and offer insightful information on the state of the market.
Negotiation Strategies
- In a buyer’s market, you can begin with an initial offer that is less than what the seller listed. Yet, even in a seller’s market, you should be prepared to barter to get the best deal possible. Until you are sure the seller won’t budge, always be ready to make a counteroffer.
- For a better offer, provide recent sales information for comparable properties in the same neighbourhood.
- Be prepared to leave the deal if the seller refuses to compromise. By doing so, you might be able to convince the seller that you’re serious and persuade them to open the door to negotiation.
- Consider bundling your offers if you want to buy several properties from the same seller. It may give you more negotiating power and get a better price.
- Consider agreeing to other conditions, such as the closing date or putting specific fixtures or furnishings in the transaction. It can enable you to bargain for a lesser price.
- Let your agent handle all communications between you and the seller. Your real estate agent knows how to frame inquiries and demands to protect your interests.
Closing the deal
Once you get a deal within your budget, do not delay and close the deal. Other buyers might get interested in the property in the meantime, raising the price of the property. And no one would want to lose the property after all the negotiations because they were late in the closing deal.
Conclusion
A successful property negotiation begins and ends with being well-prepared with the necessary information, tools, and tactics. Hence you will need a reliable real estate agent to guide you and give insights into the market.
Our real estate experts at IPS Cambodia is the most preferred real estate agent in Cambodia because we keep our client’s interests foremost and get them the best possible deals. Our real estate agents are up to date with all the current market trends, prices, and years of experience in evaluating properties; you can contact us to get in touch with one of our experts.
KH