While a property’s asking price may seem fixed, it often serves as a starting point for negotiation. Many buyers attempt to secure a discount, and in most cases, the worst outcome is simply that the seller says “no.”
According to agents from Seeff Property Group, there are several factors buyers should consider when trying to negotiate a lower price.
READ: Get bond-ready: Why your documents matter
1. Check if a discount is possible
Some properties, such as off-plan developments, usually have fixed prices, although special promotions may occasionally be available. Older homes that require renovations or upgrades can also present opportunities for negotiation - especially if the property hasn’t already been discounted.
2. Time on the market matters
If a property has been listed for a long period, the seller may be more willing to negotiate, though this depends on whether they prefer to wait for another buyer.
3. Cash is king
Cash buyers often have an advantage. Offering cash with no contingencies can make your proposal more attractive, as the seller can access the funds quickly.
4. Pre-approved finance can help
If you don’t need to sell a property first and already have financing in place, you may secure a small discount - particularly if your offer has no contingencies and includes a substantial deposit.
READ: Cape Town leads: 5 suburbs with average prices above R20 million
5. Market conditions influence flexibility
In a slow market with many properties available, motivated sellers may be more inclined to negotiate. The more attractive your offer, the higher the chances of it being accepted.
However, if other offers are on the table, a discount may be unlikely unless your offer is significantly stronger - such as a cash deal. If you’re determined to secure the property, you might need to offer the full asking price - or even more, according to Seeff.
6. Be strategic and informed
Negotiating successfully is about being a knowledgeable and strategic buyer. Research the property, understand the seller’s situation, and make a well-reasoned, confident offer.
Quay 1 International Realty Regional Manager Christine Marsh and Meridian Realty founder Antonie Goosen emphasize the importance of pricing a property correctly:
Comparative Market Analysis (CMA): Evaluate the sale prices of similar properties in your area, considering size, location, condition, and amenities. This provides a realistic benchmark.
Consult a real estate agent: Agents with local market expertise can offer data-driven advice and recommend a competitive asking price.
Evaluate market conditions: In a seller’s market, prices can be higher; in a buyer’s market, competitiveness is key.
Consider unique features and improvements: Renovations or energy-efficient upgrades can justify a higher asking price.
Get a professional appraisal: A certified appraiser provides an unbiased assessment based on property condition, location, and comparable sales.
Leave room for negotiation: Set your price slightly higher to allow for negotiation without sacrificing your desired sale outcome.
“By combining these strategies, you can determine a competitive and attractive asking price, increasing the likelihood of a successful sale,” says Marsh.
READ: The Maranello - The perfect blend of lifestyle and investment value
Goosen adds that understanding local market dynamics is crucial. Research similar properties to gain insights into their asking and selling prices, and consider professional valuation for an unbiased assessment. “Knowing whether it’s a buyer’s or seller’s market is essential. Factors like demand, supply, interest rates, and economic trends influence property prices. Guidance from an experienced Property Practitioner can be invaluable,” he notes.
Want all the latest property news and curated hot property listings sent directly to your inbox? Register for Property24’s Hot Properties, Lifestyle and Weekly Property Trends newsletters or follow us on Twitter, Instagram or Facebook.
