How to negotiate the price of an apartment, a complete guide to a skill that can save tens of thousands of zlotys

How to negotiate the price of an apartment, a complete guide to a skill that can save tens of thousands of zlotys

Negotiating the price of an apartment is one of those moments in the buying process in which a few hours of good preparation and a calm conversation can translate into savings of tens of thousands of zlotys. Despite this, many people approach negotiation with fear, uncertainty or, on the contrary, with excessive aggression that closes doors instead of opening them. It is therefore worth looking at this topic systematically and understanding what really works and what is a myth.

The first and most important foundation is knowledge. Negotiation begins long before the first conversation about price. It begins with understanding the market. The key is awareness of the difference between the asking price and the transaction price. The asking price is the amount the seller would like to obtain. The transaction price is the amount for which the property actually changes hands. In Kraków this difference currently averages 5 to 12 percent, although in the case of heavily overpriced offers it can reach 15 percent or more. Data on transaction prices can be partly found in the registers of property prices and values kept by counties, and also by analyzing the history of offers on portals. The better you understand the real price level in a given district and for a given type of apartment, the stronger your position.

The second pillar is understanding the seller’s motivation. Every transaction has its story. Someone is selling an apartment inherited from parents and simply wants to close the matter. Someone is moving abroad and has a specific deadline. Someone is divorcing and both sides want to divide assets as quickly as possible. Someone has already bought a new apartment and needs cash for the transaction. Someone else, on the other hand, has no pressure at all and will sell only if they get their dream price. These situations require completely different approaches. That is why it is worth asking questions, in a polite and natural way. Why are you selling? Do you care about a specific deadline? Is the apartment still occupied? The answers, and often also the way they are given, say a lot about the negotiation space.

The third element is time. The time an offer has been exposed on the market is one of the strongest indicators of negotiation room. An apartment that appeared yesterday and is well priced will probably not give much space. An apartment that has been hanging on portals for four, six or eight months is a completely different situation. A long exposure time means that either the price is too high or something in the offer discourages buyers. In both cases the seller, after many months, is more inclined to talk. It is worth checking the history of the offer, seeing whether the price has already been lowered, and by how much.

The fourth element is the way of arguing. This is where the most mistakes are made. Saying “this is too expensive” is not an argument, it is merely an opinion that the seller will immediately reject. Effective argumentation is based on specifics, ideally connected to a cost. The bathroom requires renovation, which means an expense of around 25 thousand zlotys. The windows are old and leaky, their replacement is another 15 thousand. The apartment has no parking space, and in this area this is a real problem. The building administration fee is higher than in neighboring buildings. The energy class is low, which means high bills. Each such point is a specific that can be put on the table. The sum of these specifics creates a logical, hard to reject proposal to lower the price.

The fifth element is readiness to walk away. This sounds trivial, but it is absolutely crucial. The strongest negotiation position is held by a person who is genuinely ready to give up a given offer. If you have fallen in love with an apartment and the seller senses it, your position weakens. If, on the other hand, you treat a given offer as one of several possible options, you are calm and not in a hurry, the seller feels they have to fight for the transaction. A good rule is never to view only one apartment and never to show the full extent of emotions during a viewing.

It is also worth remembering that negotiation is much more than just the price. If the seller does not want to lower the price, other elements can be negotiated. The handover date adjusted to your needs. The furnishings that remain in the unit, for example the kitchen, built in wardrobes, appliances, air conditioning. The split of notary costs. The date and form of payment. Leaving the apartment cleaned and emptied. Each of these elements has its financial value and can be a subject of conversation.

There are also a few things that should not be done. First, do not start with an absurdly low offer that offends the seller, because this often closes the conversation. The offer should be lower than your target but still within reason. Second, do not lie or invent nonexistent flaws, because an experienced seller or agent will quickly sense it. Third, do not negotiate in a hurry and under pressure, give yourself time for every decision. Fourth, do not forget that there is a person on the other side. Respect, calm and substance work much better than aggression or arrogance.

In a global context it is worth noting that the culture of real estate negotiation differs between countries. In the United States negotiations are fast, sharp and very transactional, often conducted exclusively by agents. In the United Kingdom the gazumping system allows the seller to accept a higher offer even after preliminary agreement, which creates a specific dynamic. In Middle Eastern countries negotiation is part of the culture and is expected almost always. In Poland negotiation is today a standard on the secondary market, although on the primary market, meaning with developers, the space is smaller but still exists, especially for the last apartments in an investment or when buying several units.

At Eternel negotiation is our daily work. We represent both buyers and sellers, which is why we understand the dynamics of both sides. For buyers this means access to knowledge about real transaction prices, familiarity with the local market and experience in conducting conversations in a way that protects the client’s interest while not closing doors. For sellers it means the ability to defend the value of a property and present its strengths in a way that justifies the price. Negotiation is a skill that can be developed, but in the case of one of the largest financial decisions in life it is worth having someone on your side who does it every day.