Information gathering, timing and agent representation can all play a part
Negotiating for the best deal on a home can be tricky, with both sides looking to get the most out of the transaction. Buyers are not only looking for a good price, but also high-end add-ons and other amenities to sweeten the deal. Meanwhile, sellers are usually hoping to make the most money with the least amount of effort.

 Pictured is the panoramic ocean view of a luxurious condominium namely Springtide Residences in Tanjung Bungah, Penang island. >>more

Luxury properties can be even more complicated, with both buyers and sellers having high expectations of the deal, realtors said. They may be dealmakers in their own right, priding themselves on their own negotiation tactics. This can lead to a more complicated or drawn-out deal, as the players can be more reluctant about conceding.
 
In addition, emotions may also be at play, adding yet another layer of complexity.
One of the first things to do is cut that emotion out.
 
Nothing is personal. The best way to mitigate emotions is setting expectations.

 Pictured is an exquisite ​corner heritage property in the heart of​ George Town, Penang island. >>more

Bring in a buyer's agent
Buyers should have an agent, no matter where they are looking. Getting someone to represent a buyer’s needs is essential.
 
Often buyers walk into a place, find it amazing and show all their cards before even saying, ‘hello’. A buyer’s agent knows what questions to ask. There’s a lot going on behind the scenes.
 
And although there are realtors who represent buyers and sellers, an exclusive buyer’s agent, or an agent who doesn’t have listings, only represents buyers with undivided loyalty. They do not care which property they buy except that it is priced correctly.

 Interior view of a post-war heritage property in the Core zone of Georgetown UNESCO enclave. >>more

Plus, for those buying a property in a state or country in which they don’t live, having someone on the ground in that area is crucial.

For instance, out-of-state buyers are sometimes taken with the photos of property listings online. The pictures may look great, but it is not possible always to see the little things.
In addition, an exclusive buyer’s agent might be able to share information with you that another agent could not. If she is an agent of the property seller, she may have information she can’t disclose because of her relationship with him.

That could include circumstances that could help a buyer negotiate a better deal. For instance, if the owners are getting divorced or other circumstances, that means the sellers need to move quickly on the deal. An exclusive buyer’s agent do their own extensive research on properties, shifting through public records and other information to figure out what the seller’s situation is, and can pass on all that information to their client.

 A cozy single-storey home in the tranquil cul-de-sac of Western Gardens neighborhood, Penang island. >>more


Preparation is key
Research, both of the home and the neighbourhood around it, is crucial.

Things like how much the current owners paid for it, what renovations have been done, how long it’s been on the market, how many showings its had and what comparable properties in the area sold for are all good things to know. If it’s possible to find out the situation of the seller, that can be useful, too.

 A cute and cozy detached home in Hillside, Tanjung Bungah, Penang island. >>more

If the seller needs the money, a lower offer might work. On the other hand, if money isn’t an issue, the seller might be in a position to wait for a more lucrative deal.

Buyers don’t just need to gather information on the properties they are interested in, but also their own financial situation. A good agent always has his clients prepare a package before even looking at properties.

There’s nothing worse than walking into the right property and not being able to act.


Negotiation tactics are based on the market
Knowing the conditions of the market is also important, and varies in different communities.

In Penang island, where property prices are very competitive, a good buyer’s agent would always recommend buyers to strip as many contingencies out of an offer as possible.

That means cutting out things like potential repairs or asking for add-ons, which might help the buyers to obtain a better and fairer purchase price. But one thing to never skimp on is the home inspection. Especially when dealing with heritage properties in Georgetown UNESCO enclave, buyers have to know what they are getting into.

 One of the rooms of an eclectic boutique hotel on Beach Street, George Town, Penang island. >>more

A good buyer’s agent always write up the contract to be dependent on the home inspection, so she can ask for repairs or for a discount on the price. She also leverages timing to help get a better deal.

Sometimes we can get a better price if we close later on the deal, noting that the seller may need extra time to close on his or her next home.

Or, if it’s an all-cash deal, that can sometimes get buyers a better price.


Unique deals can be made on new constructions
Negotiations take on a different tone when dealing with new construction that may not even be built yet. In Penang island, some buyers would eye on new high-rise buildings where developers often have set prices.

Sometimes there isn’t much wiggle room on new off-the-plan developments. But it is sometimes possible to get upgrades i.e. better cabinetry in the kitchen or more high-end finishes in the bathroom.

However at times, it can be difficult to negotiate with developers. Difficult, but not impossible.

 Artist impression image of the Angsana Teluk Bahang, Penang - an integrated resort and wellness centre which consists of the hotel encompassing suites and apartments, the latter for sale and leaseback. Due completion in late 2018. >>more

Extras or add-ons are definitely something buyers should investigate when negotiating for new off-the-plan developments. A good buyer’s agent would assist to bargain with the developer, i.e. having the unit built out by the developer instead of having it delivered “bare”, meaning it still needs floors, window treatments, lighting and other details.

Having the unit built out, sometimes into “almost” move-in condition, incurs an additional cost. But if the developer does the same for a number of other buyers, they will be able to offer a better-priced renovation package, as compared to purchasers individually seeking interior designers and contractors upon completion, which is not exactly time and cost effective.

In addition, new developments also often offers "developer discounts", which goes to the conveyancing lawyers, title and other closing fees. Comparing to purchasing secondary market properties, that can save quite a bit of money.


Currency rate negotiation for international buyers
Finally, for international deals, buyers might want to consider adding a clause about potential changes in the exchange rates.

Buyers want to limit the risk of currency exposure, a change in the rate could end up meaning a bigger payout.

To that end, buyers can lock in the exchange rate at the time of purchase. There’s a risk there, too, however, as the rate could change in the buyer’s favour.

 One of the last remaining pieces of freehold, residential lands by the sea in Tanjung Bungah, Penang island, sized at 2.5 acres. >>more