A simple ignorant remark can ruin a very promising deal. Keep the following points in your mind while making a real estate negotiation in order to avoid making costly mistakes.
8 Fatal Real Estate Negotiation Blunders
Failing To Understand The Seller
Looking at the deal from the other side of the negotiation table can reveal vital clues that can be used to leverage the deal in your favor. Try to understand the urgency of the seller to dispose the house. Maybe the seller has certain financial pressures, or is moving to another city. If it’s a developer, s/he might need to sell certain number of units in a fixed time.
Failing To Understand The Market
Many buyers do not spend enough time to study the market and find out the prices of comparable homes. Most information is readily available online. Local real estate blogs are a valuable source of information. Talking to people who live in and around the property you intend to buy or visiting a local broker will also give you an insight into current market trends.
Revealing More Than You Should
Details like whether you want to pay for the house in cash need not be revealed, as this gives the seller an idea about your purchasing power. Your aim should be to ask as many questions as possible, while giving away minimum information about yourself.
Making Your Best Offer First
Some buyers think it wise to make their best offer first, and let the seller come to terms with it. Throwing away all you’ve got leaves youwith nothing to fall back on.
Not Having Other Options
Not having other options to look into makes you look desperate. On the other hand, letting the seller know that you are looking at other properties gives you an advantage.
Negotiating On The Phone Or Email
Trying to close the deal on the telephone or through email normally works out in the seller’s favor. The most effective way to secure a good deal is to do it face to face, as it gets your voice and your body language into the equation.
Making A Specific Offer
Sticking to a specific number could backfire and close the real estate negotiations altogether if the number is considered too low. It is wiser to present a range of figure instead. For example, Rs. 35 lakhs to Rs. 37 lakhs.
Getting Carried Away
Some buyers get so carried away in the negotiation game that they forget that they are there to purchase a home, and not beat the seller. If you like the property but the seller won’t go further down, consider whether the price fits into your budget. If yes, secure the deal!
Real estate negotiation is an art that requires careful consideration of a few simple factors, which if followed, can results in great deals.
Have more tips to share with us? Let us know in the comments below!
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