With a lot of money at stake, every buyer would want to get the best deal possible in the market. Here are a few helpful real estate negotiation tips to help you increase your success rate on the negotiation table while closing the deal on your dream house.
Eight Effective Real Estate Negotiation Tips
Plan Your Budget And Know Your Upper Limit
Once you know how much you can afford to spend, it becomes easier to bargain for the best deal. Plus, knowing your upper limit will stop you from making an offer that would hurt your finances later.
Research The Market To Know Where You Stand
Find out the prices of similar properties in the local market. Meet local brokers and get an idea about how much you can quote for a particular property. Knowing the present market scenario helps you counter the seller’s prices with a reasonable and fair offer.
Put On Your Poker Face
Remain calm and neutral. Do not reveal your personal limit, your interest in the property, or your borrowing capacity. Try not to get excited about the property as this gives the seller an idea about how much you like the house.
Know The Seller’s Reason For Selling
Knowing why and how quickly the seller wants to dispose the property will give you a lot of leverage in the negotiation process. Also, check for how long the property has been up for sale, and if there are any problems with the property.
Start Low And Never Make The First Offer
Let the seller quote a price before making your offer. Always start at 15 % to 20 % lower than the seller’s expected price. Be moderately flexible, and gradually come down to about 7 % to 8 % lower than the seller’s initial price.
Walk Away Politely If Negotiations Fail
If negotiations fail, or you cannot secure a deal that falls within your budget, make your best offer and walk away. Do not make the mistake of getting stuck in a deal that you’re unhappy with. Often the vendor will get back to you if he or she doesn’t find a better buyer.
Be Armed With Cash Or A Pre–Approved Home Loan
Developers are always keen on selling inventory. If the seller knows that you are serious about buying the property, he or she is more likely to come down to your terms to seal the deal as quickly as possible, before you go to somewhere else.
Let The Seller Feel Happy Too
There will always be multiple items to negotiate over. Negotiate primarily on the price, and let the other party believe that they have won the negotiation by providing them with more favorable settlement terms. This way everyone is happy!
Sealing the final deal might involve meeting the seller or the seller’s agent more than once. Be calm and do not lose your patient. Use these real estate negotiation tips to your advantage, and always remember, if negotiations fail, you always have other interesting properties to check out.
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