HOW TO NEGOTIATE?
Zagrepčanka: “Sellers tend to lower prices at this time of year. That's when I decided to buy an apartment, I saved 20,000 euros! '
Whether the timing is affected or is it a mere coincidence, we speak to experienced real estate agents
For five years I followed the advertising of real estate in online classifieds, analyzed and waited patiently. I was looking for a bigger apartment than the one we lived in, in the same Zagreb neighborhood, in Horvati. When I found an apartment that would suit my family, I was in no hurry, and I said to my husband: 'We will buy an apartment this winter or only next winter', tells me an acquaintance who did not want to enter the buying and selling process in the spring or autumn when there is a general rush and when prices rise further due to the great interest.
I noticed that ad views decrease in the winter period, that the number of ads published was then slightly less than in the rest of the year and that good opportunities stood for longer, which suggested to me that this was the ideal time to buy. We took a targeted tour of the apartment from the ad in January, at a time when people were wearing out after the holidays and when I assumed we could lower the asking price, which we eventually managed, and we capped it in early February. For our apartment of 63 square meters with additional storage and elevator in the building, 220,000 euros were asked, and we paid 200,000 for it - she proudly says, confident that buying in the middle of winter, when there was less activity in the real estate market, was a 'full hit'.
The most common arguments for lowering prices
1. Longer time on the market: If a property has been advertised for a long time, it signals that it may not be attractive due to the current price and is easier to negotiate.
2. Necessary investments: The condition of the property (adaptation, energy inefficiency, old carpentry, etc.) often serves as the basis for negotiations.
3. Lack of key elements: Lack of elevator, parking space, poor orientation, distance from public transport or other amenities also affect the seller's willingness to correct the price, emphasizes Jasna Biliškov Barun.
Is it mere luck, coincidence or is it really the right timing to buy a property in winter? Whether sellers are then more inclined to lower the asking prices and what would be the justifiable arguments for their correction, we asked several real estate agents. The answer is not unanimous.
Sanjin Rastovac Sky Real Estate Agency is convinced that right now is the best time to buy an apartment in Zagreb.
- Today, next month... I know, it sounds like a floscum that any agent will say, but personally I also told my brother, who is currently in the role of buyer, that he is additionally activating and planning a purchase by the end of the year. This year we have a decline in transactions, which, according to some statistics, is about 30 percent. Nothing unexpected. There were no APN subsidies, interest increased, there are fewer foreign customers, the offer is weak, and all of the above is returned again in some form in 2025 - says Rastovac.
He adds that it is also important that the state abolishes the tax on the first real estate, ie refunds half the tax, if a new building is purchased.
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- This measure will trigger buyers who depend on subsidies to afford real estate, and last year more than 5,000 of them used this option. A decrease in interest on loans is also expected soon, which will again result in a larger number of creditworthy citizens. The markets from which foreign customers come to us, on the other hand, are partially recovering and with the aforementioned lower interest rates, the number of customers can be expected to return to previous levels.
There are more reasons for the growth of demand, but these three are also enough to understand that the competition among buyers will be greater than it is now, and the supply, ie the number of quality real estate, will not be much higher than it is today - he says and adds that the new GUP, which will come into force in the foreseeable future, will only further 'add fuel to the fire', ie raise the prices of square meters with new provisions.
- Therefore, if you are planning to buy and still, if it is the first real estate, I advise you to hire and pay for the apartment on time - points out Rastovac.
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Jasna Baron Baron fromBiliškov Real Estate Agency confirms that the real estate market shows a certain seasonality.
- Activities in Zagreb are most intense in spring and autumn, and at sea it is in summer, while during winter there are fewer visits and inquiries. The reasons for this may be the holidays in December and the fact that many people sink into a 'winter sleep', the day is short, people do not want to think about big financial decisions... - comments Jasna Biliškov Barun andadds that the buyers of the apartment in Horvati took advantage of seasonality and less activity on the market, but probably also the fact that the apartment was advertised for a long time.
- Such situations are not uncommon, but they are not the rule either. The winter months can indeed be a favorable time for negotiations due to less competition among buyers, but the success of such negotiations depends on the combination of the right moment, realistic approach and motivation of the seller. Sellers who are in a hurry to buy another property or for other financial reasons, in particular, are more likely to lower the price, regardless of the season,” he says.
Price correction, he continues, depends on the condition of the property, location and motivation of the seller.
- In practice, lowering the asking price from 5 to 10 percent is common, and in the case of real estate with greater defects, for example without an elevator in a multi-storey building, without a parking space and the like, discounts can be even higher - emphasizes Jasna Biliškov Barun.
Diana Perger from Real Estate Agency Euro-interijeri on the other hand, comments that it is possible that the price correction is decided by sellers who started selling their property when the market was “alive”, but if they failed to sell it, they entered a period of stagnation.
- We can also look at it from a different angle: what was worth was sold, and in the case of overpriced properties, it does not matter at what time of year you sell them. Until their price is corrected, they will stand in the market. There is also the question of how much real estate prices have risen in those five years. More precisely, if we look at the bigger picture and take the example of a 'saving' of 20,000 euros, questions open up about the decline in the value of money in those five years, the growth of interest on loans, whether subrents were paid in the meantime, the quality of life during that period. I would conclude that we cannot take this example as a rule, and that each buyer, regardless of the season, should decide for himself when is the right time to buy - he warns.
The reason why activity in the real estate market is reduced in summer and winter is that in summer citizens are engaged in vacations, preparations for the new school year and the focus is on tourism, while in winter the focus is holidays and skiing.
So we see that none of the above is a real economic impact, simply the focus of buyers is not focused on the market.
The problem of equalizing prices with new construction
One of the biggest drivers of price rises in a neighborhood is new construction, for whose high amounts sellers of second-hand real estate 'tie' as a kind of reference. According to unwritten rules, says Sanjin Rastovac, in the best case, the price of an adapted apartment in an old building should be about 20 percent lower than an apartment in a new building.
The experience of Rina Broqi from the agency Rina real estate also shows that spring and autumn are the most attractive seasons on the market, in previous years additionally activated by APN.
There is a well-known opinion that Croats like to buy real estate after the tourist season, when college starts, so they buy their children their first apartments so as not to pay rent. Likewise, let's not ignore the fact that the human mood also greatly influences the purchase and the will to the same. As soon as the days are sunnier, people are willing to inspect real estate and then prefer to buy them. But I must admit that in our agency December has always been extremely active, and we felt a smaller decline in January and February - says Rina Broqi.
He adds that real estate was sold even during inflation, and without lowering prices, but believes that now, with the increase in new buildings with more affordable prices often within reach of Zagreb, a certain decrease in housing prices may occur.
- Let's understand each other, we are talking about smaller percentages, the activity on the market is still in full swing and I believe that there will be no more drastic drop in prices in Zagreb. We will see what impact the proposals of the new related laws will have, but I believe that a slight 'shifting' could be achieved - Rina Broqi believes.
HOW TO NEGOTIATE?
Diana Perger:
“Negotiating the price is an extremely complex topic and enters the sphere of psychology, which is why I highly recommend leaving it to professionals. Why? Because it is necessary to realistically look at the advantages and disadvantages of a particular property in financial and emotional terms, to have knowledge of the achieved prices in the area, to meet the seller personally, to find out his reasons for selling and plans for the future and to identify the best approach to it. Also, during the negotiations, it is necessary to take into account all the conditions of purchase and sale such as payment deadlines, flexibility around eviction, amount of advance/deposit... What I want to emphasize is thatthe highest price offered does not necessarily mean that it is the best offer for the seller. If buyers engage in negotiations on their own, they should refrain from criticism at the expense of real estate! The price does not go down by pointing out to the seller the flaws of the property.
Sellers are mostly emotionally attached to their properties and will take this as a personal attack for good reason.”
Jasna Biliškov Baron:
“In the conversation with the seller, negative comments such as 'the apartment has a bad floor plan' or 'needs a lot of investment', which can cause resistance, should be avoided. On the other hand, it is preferable to focus on realistic arguments, such as comparing the prices of similar properties in the neighborhood or highlighting specific disadvantages with a realistic price proposal. It can be said, for example: “Given the condition of the property and the current prices in the neighborhood, we think that the 'this and this' amount would be realistic”.
Sanjin Rastovac:
“There are different ways of negotiating, but the first step is to try to figure out who is the main seller and figure out what type of person you're dealing with; whether it's an emoticon or a type of figures and facts, or something else. Only then can you know in which direction the negotiations should go in order to make a sale. Negotiations like this need someone skilled. As for some basic tips, I would say that the most important is the first impression. Try to arrive on time when sightseeing, shake your hand tightly when greeting and look the man in the eye. As you tour the apartment, don't bother to pull out any negativity you see and say it out loud. Keep it for yourself, because the seller does not want to hear that the apartment in which he lives is a bottomless hole. Through the conversation, in a subtle way try to extract the reason for the sale as this can be of great help in the negotiation. When making an offer, count that most of the time the price can be corrected about 5 to 10 percent of the advertised, if, of course, it is set realistically. The goal is for one side and the other to feel that they have got something.”
Rina Broqi:
“I think the agent is the best shock absorber between buyer and seller. He will keep an eye on how he communicates the information between the parties, so that both can extract what is important from the same, and yet not be offended. Sellers who are attached to real estate find it difficult to accept criticism regarding the property, the floor plan, the price. But the price can be lowered by real problems such as humidity, high floors without an elevator, visibly poor-quality construction or poor condition of the property. In this case, it is important to warn the owners of the disadvantages because the buyer could also be aware of this and ask for a price reduction”.
Published: 24. November 2024
for Jutarnji list - Home & Design, Diana Perger