Why negotiate?

Bargaining is second nature for most of us…

We have nothing to lose but everything to gain.

Rupee saved is rupee earned. Makes more sense today..

Imagine what a 50Rs/100rs per sft discount will mean. And what all the discounted amount can take care of !!

When to negotiate?

Pre –launch

Post -launch

With whom to negotiate?

Try to understand the hierarchy.. Of the Builder’s sales Organization. Request for a meeting with the person higher up to the extent possible…

How to negotiate?

Once you have decided you want to buy a home and have filtered down on the most preferred location.

Scout for not just existing projects but also upcoming projects –if the timelines are comfortable..

Visit all possible property Expos

Check with good builders if they are coming up with any project in your preferred areas-if there is none at the moment that suits your budget/ or off your budget by a few lakhs.

Look for early Bird offers/Pre-launch offers.

Keep track of all the Property related offers that keep falling in your mail box. Useful to compare.

Keep your friends informed of your intentions to buy a home and ask them to inform if there are any special offers from their existing/known builders

Get to know more about the builder. Compare all the nearbye options before zeroing in on the builder for discussion/negotiation. What is the stage of the project Form a group or network with an existing group

Keep in touch with the sales staff of the Builders/Owners regularly and develop a relationship which will be difficult to ignore. You might soon become an ‘insider’ to the builder/his staff which is sure to work in your favour and get you a good price.  

Once you know the company staff –try to connect on linkedin and know other possible common contacts. Who knows you may have a great ‘common friend’ who could influence the final price…..

 

Get to know the recent priceFind out special offers if any and the basis.Find out a bit more about the ‘financial’ requirements of the builder thro a little informal chat with the sales staff. (how to get a better rate? Just drop a hint you might try for higher upfront payment if there is a scope for better price becoz of that.Unlock your idle savings and use it as higher upfront payment (makes sense in the present high interest rate regime)

If you are 100% liking the project and possibly the interaction with the staff—convey your willingness to ‘refer’ the project amongst your peers, friends and relatives—even if you don’t already have a group benefit.

The scope for discount will not be more than 5% in any case—if the project is already underway. Normally it varies between 1 to 3% max—except where the construction is not yet fully underway and/or the project is in pre-launch or pre-approval mode where it might take some more time for the builder to get access to Bank funds thro Housing loans. Builder is likely to offer extra discount based on his money cost he gets to save due to your remittances.

 

Try for a Win Win deal…. Always drive the discussions on a very ‘congenial’ note appreciating the constraints of the sales staff/Mktg head/Builder. Negotiation is not a ‘very’ pleasant task for either party so it is important to create the right atmosphere where by the builder gets to feel he has ‘benefited’ a genuine customer and not ‘lost’ to a hard bargaining customer. 

In closing, keep in mind that even though builders are eager to sell their homes; they also need to turn a profit. In your house hunting travels you may find that the builders that are still in business today have survived because they offer a good value at a fair price and they stand behind their product when you need them!

Not comfortable with bargaining still?

 

Try for the impersonal route: Thro the agent—and inform of your liking and the price you are prepared to pay for a given project.

Alternately tag along a group/with someone else doing the bargaining. You take the back seat and still benefit.

THANK YOU AND HAPPY BARGAINING!