How to Successfully Negotiate the Price of Real Estate in Croatia

Negotiating the price is a standard and normal part of the buying and selling process. It would be banal to say that it is an integral part of tradition and mentality, however, it is increasingly becoming a necessity since sometimes real estate prices are not realistic because owners get greedy and follow the logic “if it works, it works.”

Why Negotiation Is Key When Buying Real Estate

Buying real estate is certainly one of the biggest financial investments we will have in our lives, so nothing should be left to chance. Good negotiation can save the buyer several thousand euros.

The seller’s time, or the time when the seller is in a better position, is when there are multiple interested buyers for the property. In such cases, they compete for the property, leaving little or no room for negotiation, since other buyers are also in competition. 

However, when the buyer has more choices, meaning when supply exceeds demand, we call this the buyer’s market, and then sellers are more inclined to negotiate prices.

Buying real estate is certainly one of the biggest financial investments we will have in our lives, so nothing should be left to chance. Good negotiation can save the buyer several thousand euros.

The starting price, which is usually set by the seller, is often not fixed. Sellers often set such a price that leaves room for negotiation. Inflated prices can be recognized if they deviate from market value, and this is often a green light for negotiation.

Preparation Before Negotiation – Market Research and Price Comparison

Before deciding to negotiate a lower price with the seller, we need to have at least some understanding of the market. We can do this simply – by researching the prices of real estate of similar size in the same or similar area. We can use searches through the most popular advertisers such as Njuškalo or Nekretnine.hr.

It is also important to check how long the property has been on the market, because if it has been listed for a long time, that means there is room to negotiate the price.

The condition of the property also leaves room for negotiation, considering how much needs to be invested in renovation or repairs. With the seller, we can negotiate to lower the price approximately by the amount of potential additional costs.

Tactics for Achieving a Better Price

When starting negotiations, it is advised to set a lower offer than the target amount, but not to overdo it and not to go above 15%. The reason is to create room for negotiation because the seller will likely not accept the lowest offer but will know in which direction the negotiation is going and will make a counteroffer.

Price reductions must be justified, so we should point out to the seller why the price should be lower. For example, if the heating system needs replacement or investment is needed in thermal insulation, etc.

Lack of parking space or poor location can also be arguments for negotiation. 

At this stage, you must be ready to compromise. For example, if we fail to reduce the price of the property, perhaps the owner will agree to include furniture. 

During the entire process, you should pay attention to common mistakes that real estate sellers make and capitalize on them in order to get the best price.

Mistakes to Avoid When Negotiating

It is important not to set a lower price without basis, so once again we emphasize that knowing the market is of fundamental importance. With the seller, you must maintain polite communication and keep it on that level. Needless to say, one should refrain from aggression and blackmail, as this will only discourage the seller from possible negotiations.

It is also not good to give up immediately if the seller initially refuses a price reduction. At this stage, good preparation, solid knowledge of the market, good nerves, and patience are important. 

How to Know When It’s Time to Accept an Offer

When we receive an offer that roughly matches the market situation, it is a sign that we should accept it. If the price is adjusted to the needs of renovation, we should also accept the offer.

If there are other interested buyers, we don’t have too much time to think, especially if the target property meets all our wishes. If other buyers are interested, the seller may not have much patience or understanding for us.

Legal Security and Hiring an Agency

Once we have agreed on the price with the seller, the next step is the process of signing a preliminary contract and contract. The whole process should be professionally guided, so we recommend hiring a real estate agency and agent to make the process as smooth as possible. 

When signing the preliminary contract, the buyer pays the seller a deposit, i.e., a guarantee towards the total amount. If the buyer withdraws from the purchase after signing the preliminary contract, the seller keeps the entire deposit.

The preliminary contract includes the price, method of payment, deposit, deadlines, and contract date, while the contract finalizes the entire process.

Better agencies also offer legal services. A lawyer will check the documentation, take care of the preliminary contract and contract, and provide legal advice if necessary.

Conclusion

Negotiating the price of real estate is not just an opportunity to save money, but also a way for the buyer to achieve a fair and realistic price in line with market conditions and the actual state of the property. The key to success lies in good preparation and reasoned communication. With legal security through proper documentation, notarized contracts, and professional assistance from an agent or lawyer, buying real estate can be a safe, easy, and satisfying process.