Last Updated on March 30, 2022 by Kravelv
When buying a property, having good negotiation skills is a must. Only then will you be in a position to acquire the desired property at the price you want. Else, you will have to accede to the seller’s demands completely and pay whatever they are asking for in order to acquire a home. And to help you improve your negotiation skills, the following five tips will definitely be of help.
Be A Master Of Property Prices
Improve your knowledge of the real estate market, and have full knowledge of property prices. Not just the property you are interested in, but the prices of similar properties in the area, the reasons for any difference in value among similar properties, and so on.
Being knowledgeable about such things will definitely give you an advantage while negotiating with the seller of a property. For example, suppose that you are interested in a home which is priced at $80,000. When meeting the seller, you can quote $70,000 as your price, showing how similar properties in the area are valued around $70,000 only. By doing so, the seller will realize that he cannot overprice the property while selling to you, increasing the chances that they might agree to your terms.
Be Direct And Honest
Be direct in your approach. Never try to play any game with the seller. Dishonesty is the one thing that can easily make sellers avoid you. So, always be honest about your buying intentions. However, be sure to not be too honest that you allow yourself to be manipulated by the seller. For example, imagine that you like a particular home which is priced at $95000. You may want to get it at $85,000 even though you are willing to buy it at $95,000. So, convey to the seller that you are interested in the property if they shave off $10,000 from the asking price. However, never let the seller or their agent know that you are also willing to pay the full value in order to acquire the property. That will essentially give them an upper hand and they might use your interest in the property to make you pay their asking price.
Get Information About Seller
The saying ‘knowledge is power’ is highly applicable when it comes to negotiating with a property seller. You should try to know as much as you can about the seller, and the reason why they are selling the property. While knowledge about the seller will give you an idea of their behavior and enable you to craft your negotiations accordingly, knowing the reasons as to why the property is being sold will give you incredible leverage. For example, suppose that you come to know that the seller is selling off the property because of a debt they have to pay and that the person generally likes talking to people in open spaces. Now, you can invite the seller for negotiations on a beachside pub and make an offer with a price that allows them to fully repay their debts. This will ensure that you have the best chance of turning the negotiations to your advantage. So, learn the psychology of negotiations and apply it in your dealings.
Explain Your Quoted Price
Be sure to thoroughly explain to the seller as to why you are quoting a lower price. If your arguments are sound and logical, then there is a good chance that the seller might actually accept the terms. For example, if you are quoting $5000 less for a property because you see that the house has to be renovated in order to make it ideal for families, then you should convey this to the seller. Draw up a list of renovations you will be making together with the price and show it to them. Professionals at http://www.visiononehomes.com.au/blog/client-home-tour-shorehaven-alkimos agree that explaining your quoted price in a reasonable way can increase the possibility of you winning in the negotiations.
Offer Ready Cash
If you are planning to pay for the property in cash, then let your intention be known to the seller. Many sellers will look to quickly get their property sold off since they might be in a hurry to utilize the proceeds for some personal use. And you can exploit their urgency if you offer cash payments. Firstly, you can get the seller to lower the price. For example, if the seller is asking for $80,000, you can offer a price of $75,000 with a promise to pay all the money in about an hour in cash. And the possibility of having money on the hands within an hour can be too tempting for many sellers that they might agree to your price. The second benefit is that you can easily win over other bidders. When a seller sees that you have the money in your hands, they are more likely to decide to deal with you rather than opting to wait for other bidders to get their mortgages approved.