Whether you’re buying your first home or you’re a serial investor who is adding to your property portfolio, a well-negotiated deal is always welcome. If you’ve set your sights on a new property that you feel is priced just a little bit too high, you’re going to need good negotiation skills to close the deal at the right price. Here are some tips and tricks to negotiate while buying a property to ensure a win-win offer.
1. Have a Realistic Price in Mind
Every seller wonders how much is my house worth and every buyer wants to get a good deal on their new home. The first rule of negotiation is to be realistic. If you decide you want 50 per cent off the asking price, the seller is probably going to ask you to look elsewhere. So before you sit down to negotiate an offer, do your research. Find out the average market rate in the area, find out how much similar properties have sold in that area in the last 6 months and opt for a property valuation to get a fair idea of how much the property is worth. Once you have a few figures in mind, you can negotiate a good deal with the seller without making an offer that might be considered very low.
2. Don’t seem too Eager to Close the Deal
If you walk into a house and openly declare your undying love for the property, the chances are that the seller isn’t going to be willing to negotiate seeing your enthusiasm. So, you need to be able to play it cool. While negotiating a deal, don’t seem too eager. Lay down the figures on the table, make a good offer that the seller will be likely to accept and show the seller that you are willing to walk away unless you get the right price.
3. Let the Experts Do the Talking
There is a reason why you hire experts to help you buy houses and close deals. Estate agents and property agents have years of experience when it comes to negotiating and closing deals. And, you can always have a surveyor come in to evaluate the property. If you feel that you need to negotiate an offer but you might not be able to do it yourself, have your estate agent negotiate a deal. The chances of them closing the deal at a price point that you are happy with are actually quite high!
4. Always be Flexible
Just because you have a certain figure in mind doesn’t mean that the seller is going to accept your highest offer. Good negotiation requires flexibility. Be willing to meet halfway! If the seller is not willing to budge from their lowest selling price, you can always ask the seller to sweeten the deal in ways that might not be monetary. That way, you might be paying more than you initially assumed but at the end of the day, you will still have a good deal.
5. Offer to Close the Deal Quickly
There are quite a few potential buyers on the market, so you are not the only one who is willing to make an offer; every seller knows that. One way to get a seller to agree to your offer price is by offering to close the deal quickly. For instance, you can negotiate a deal by making your best offer and you can let the seller know that you are willing to close the deal within the next 48 hours. If the seller finds the price suitable, he or she might accept your offer just to make a quick sale. When it comes to negotiation, offering to close the deal quickly will certainly work to your advantage. Usually, cash buyers are able to close a deal quicker than others.
6. Know your Finances, but Don’t Announce Them to the World
Of course, you need to be realistic with your finances and make sure that you can keep up the payment terms. If you fail to meet the payment terms, your offer might be considered null and void. And you might have to forfeit the deposit. Essentially, you need to know how much you can afford to spend, but you do not need to tell the seller your budget as they will attempt to push you to the limit. One rule of thumb that you can follow is to offer 65 per cent of the target price you have in mind. You can increase the offer to 75 per cent, 85 per cent and so on, with 100 per cent being the maximum amount that you are willing to spend on the purchase of this property.