What to pay attention to when negotiating the price and terms of a real estate purchase?

Whenever it comes to buying, we all want to get the best possible price. This is especially true when buying real estate, considering the large amounts that can significantly impact our financial lives. And the goal is not only to pay less, but also to ensure that the terms of the purchase are in your favor as much as possible and that the transaction goes smoothly.

Therefore, if you are planning a purchase, take a moment and find out what to pay attention to in order to achieve the best possible deal.

1. Research the market and prices

Before you start negotiating the price of a property, you first need to understand the market. Real estate prices can vary significantly depending on the location, age of the building, quality of construction, area, and many other factors. Also, prices can be different in different parts of the city, so it is important to have a clear idea of what real estate prices are in which neighborhood.

In order to be realistic in your expectations, it is good to research the market before you start negotiating the price. This way you will be able to more easily assess whether the price the seller is asking for is actually realistic. Real estate prices have recently tended to grow unjustifiably, so it is important to compare similar properties in the area to get an insight into the average price per square meter.

Available sources and analyses can certainly be of use to you here, which will help you get a clear picture of the market. For example, the Croatian Bureau of Statistics regularly updates data on residential price indices, including data for the first quarter of 2025.

2. How to determine the maximum price of a property?

It is important that you know the maximum amount you are willing to pay before you start negotiations. This is especially important in situations where there is competition for the same apartment or house. When you set a limit, stick to it and don't be too emotional. Also, keep in mind all additional costs such as property transfer tax, notary fees, land registry registration costs, and any repairs that may be needed. These are all items that you must take into account when defining your budget.

Property transfer tax
In Croatia, the property transfer tax is 3% of the sale price of the property. For example, if you are buying an apartment for 150,000 euros, the tax will be 4,500 euros. You must add this cost to the total price, because the tax is paid immediately, and proof of payment must be attached for registration in the land registry.

Notary fees
A notary or lawyer will help you prepare the sales contract and all other legal documents. Depending on the complexity of the transaction, notary fees can range from 200 to 1,000 euros, and sometimes more, depending on the value of the property and the specifics of the contract. Always ask for approximate prices before starting the process, so that you have a clear picture of the costs.

Land registry registration fees
Registration in the land registry is the process by which ownership of the property is officially registered. The cost of registration in the land books usually ranges from 100 to 300 euros, depending on the value of the property. This cost should also be included in the total amount you will pay to become legally recognized as the owner.

Cost for property valuation
If you are taking out a housing loan, the bank will require a property valuation to secure itself against non-payment. The cost of the valuation can be between 100 and 300 euros, depending on the bank and the type of property. This cost is also included in the total expenses you need to plan for.

Possible repairs and renovations
You will often find that the property you liked needs a little refreshment or repairs, especially if it is not new. Renovations can be small, such as painting the walls or replacing the tiles, but they can also be larger projects such as replacing carpentry or renovating the bathroom. Although it may not always be necessary, it is good to immediately think about how much it could cost you to adapt the property to your wishes.


When setting the maximum amount you are willing to pay, be sure to include all these additional costs because they can significantly increase the total purchase price. For example, if you planned to pay 150,000 euros for a property, taking into account 3% tax, notary fees (1,000 euros) and land registry registration (300 euros), the whole amount can increase to about 155,300 euros or more, depending on additional costs such as renovations.

3. How to negotiate the price?

Remember: Always, but always, there is room for negotiation! However, it is important to be careful and thoughtful. Sellers usually always set an initial price that is higher than the one they are willing to accept, because they leave room for negotiation.

Here are some arguments you can use to lower the price of the property:

When it comes to negotiating the price of a property, there is always room for a reduction - but it is important to be careful and thoughtful. You will often notice that sellers set a price that is slightly higher than the one they are willing to accept, because they leave room for negotiation. However, be careful with too low offers because they can seem rude and make the seller not want to continue with the negotiations at all.

The best approach is to start with a moderate proposal, lower than the asking price, because this way you will have room for further negotiations. During the process, there are various factors that you can use as arguments to reduce the price:

Condition of the property – if the property requires large investments in repairs or renovations, you can use this as a reason for a lower price.

Location of the property – if the property is located in a less popular or less developed area, this can also be a good argument for lowering the price.

Market changes – if real estate prices in that area are falling or if the market is generally slow, you can use this as an argument for a more favorable price.

Negotiation is often a process in which both sides try to find a middle ground that suits them, so flexibility is key. The most important thing is to remain open to discussion and willing to compromise in order to achieve the best possible price.

4. Negotiating the terms of sale

When you start negotiating, the price is not the only item you can negotiate. Although it will probably be the deciding factor, there are other conditions that can affect the outcome of the transaction. For example, you may want to consider payment deadlines, delivery terms of the property, or even warranties from the seller.

Once you have agreed on all the terms, the preliminary contract can become a key document that ensures that all agreed terms are legally binding. Preliminary contract for the purchase of real estate defines the basic terms of the contract and gives security to both parties that the agreement has been reached. Depending on the specifics of the negotiations, the preliminary contract may also contain certain conditions that must be met before the final contract is reached, which is a useful tool for protecting the interests of both parties.

5. Legal advice: Check the documentation

One of the most important parts of the negotiation is checking the legal documentation. Before you make a final decision on buying a property, it is important to check the ownership list, cadastral data and other legal documents related to the property. For example, if the property is not divided into units, you will not be able to buy it through a housing loan, and the purchase of such a property can leave room for legal manipulations by other co-owners, which automatically lowers the price of the property. Also, if you decide to buy such a property, the least the seller can do is lower the price of the property for the amount you will spend after the purchase for division into units. All about division into units and why it is important, we have already written.

If you are not sure about any document you need to know that you are buying a property with which everything is okay, seek help from experts. It may cost you extra, but certainly much less than the mistake you can make.


Conclusion
Negotiating the purchase of an apartment or property can be exhausting, but understand it as an investment for the future, because you are buying a home for yourself. Therefore, the best advice we can give you is to follow these steps, set realistic goals and do not hesitate to contact experts and ask for help if you see that you cannot do it alone.

Good luck in negotiating and buying your new property!