In most cities around the world, property prices are skyrocketing as there is a high demand for residential and commercial units. Property stocks are declining at a fast rate, and the landscape is becoming even harder for many people, especially first-time buyers who fear they will never own their homes due to the escalating prices.
Negotiation is a tedious process but can be a win-win situation too. As a buyer, you certainly hope to get the best price and terms. The seller also expects to reap big from the deal and will certainly try to get you pay more for the property. It is, therefore, important that you strengthen your position in the buying process by adopting the skill of negotiation. Remember that there is a swam of investors loaded with cash and are also looking for good buying opportunities.
So, how can you successfully secure a piece of real estate quickly and fairly? Consider using these property negotiation tips.
Carry Out Thorough Research
You cannot just negotiate a price for a property whose market position you do not know. You need to check at least more than 50 properties to understand the market trend. Take note of similar properties that have sold in the recent months(about three months) as this will help you determine whether the property is worth the price or not. Some companies sell property data. Look them up and find statistical data and comparable sales on the property market in your region.
Dig up some information on the vendor’s motivation for selling the property. In most cases, a property is put up for sale due to financial difficulties, purchase of another property in a different locality, job transfer, divorce/separation, or selling after inheriting. This knowledge can help you negotiate the price to an agreeable level.
Have a Positive Mindset
Any successful buyer will tell you why it important to have a positive mindset during the negotiation process. You need to understand that this is a win-win situation, and the best bidder will go home with the prize. Don’t let your emotions betray you if you even when things are not going your way.
Don’t let Go of a Good Deal
If you see a property you love, make it easy for the seller to let go. First, offer a large cash deposit. Make it about 10% to 20% and offer a fast release on the deposit.
Don’t Play your Best Cards too Early
A successful property negotiator always tries to purchase below the market value. It is common for property to be sold below the asking price. You may also find out that the vendor has a discount offer. Pace yourself and start low. Outsmart the other interested parties by offering a quick settlement. For this to be effective, have all your finances ready before getting to the negotiating table.
The Don’ts in Property Negotiation
Going into a negotiation without proper research is probably the worst mistake you can ever make. Do not act disinterested or the seller will be tempted to dismiss you.
Remember, not every deal is worth fighting for. Know when to walk away and keep looking.