It is possible to work out a
lower rate for new homes in certain emerging locations as long as one is
well-prepared and follows some basic principles.
With new areas witnessing real
estate development and several builders launching affordable projects within
the same radius, the process of comparing options and making a final choice has
acquired a new dimension. It is possible to negotiate a better rate if one is
well-prepared and follows some basic principles.
The first thing to keep in mind
here is that negotiating for real estate does not mean bargaining as such. It
is all about doing your homework thoroughly, assessing the scope for
‘adjustment’ and timing your approach.
Moreover, it is not a strategy
that works with every project and every builder. The leading builders and
premium projects are to a large extent still impervious to such tactics.
Where it works
Smaller builders who are in a
hurry to dispose off flats can be persuaded if one ensures that the negotiation
is done subtly without making it too obvious. Similarly, fringe areas that have
opened up for development on a large scale offer the scope of negotiation.
How it works
If you make the effort to visit
every small project and then do a detailed comparison of their rates and
aspects like the actual carpet area, layout design, etc. you get a good idea of
the projects that have an edge over the others. After doing that, when you try
to negotiate, it is from a position of strength. You have specific information
at your fingertips and that makes it difficult for the sales person to refute
your logic while negotiating for a lower rate.
When it works
It is also important to time
your negotiation. Weekends are not a good time for this purpose. There are
several people waiting behind you with queries, so the sales person’s attention
is diverted to some extent. Also, he may not want to agree to a lower price in
front of the other customers.
The smart thing is to go on a
weekday, preferably in the afternoon. The month end is also a good time to
negotiate because every sales person has targets to meet. If you try and push
for a lower rate per sq.ft. during the last week of the month the chance of
getting a yes are more as compared to the first week of the month.
Why it works
Another new development that is
helping home seekers negotiate better rates is the ‘limited period’ offer by
certain builders. Such occasions are a good leverage to try and negotiate a
better rate from the builder of an adjacent project. After all, everyone wants
to make a sale. This way, you are putting forward a simple proposition that
cannot be denied because the adjacent project’s lower rate is being prominently
highlighted.
Basic tips for success
- Negotiating is not about bargaining over the price.
- Give irrefutable reasons based on solid research.
- Pick the right time to make your counter pitch.
