One of the keys to getting a property that is good value, is the art of negotiating. I bet you have come across a really good negotiator, one where they can get thousands and thousands off the price – of anything! From cars, houses, furniture, they see the price as a starting point rather than the end point. Here are a few trick they probably use.
When it comes to negotiating in property, there are a few key areas that can create a more favorable environment – for you.
You’re not the only one.
You need to convince the vendor that their property isn’t the only one you’re interested in. They need to know that you are prepared to walk away – no vendor wants you to walk away, which may mean they will be more willing to make a deal.
Beware however, they may throw this back at you by saying “Well that’s ok, as we have other interested buyers”. So through your agent (and theirs) you need to get across the point that you have other – better – properties that you have your eye on. This shouldn’t be lying, as you no doubt have found various properties that fit the bill.
The person who has more than one option, will be the person who has the most negotiation power.
Time is on your side.
A vendor who needs to sell, and needs to sell NOW will be more open to doing a deal. This is especially true if you’ve convinced them that there are other properties that you’re interested in. Of course you won’t always know their timeframe upfront, and the agents may or may not want to share this information, but you can get a general idea on how motivated they are by asking what other offers that may have received.
What do you know?
If you have done all your market research you will be in a strong position to offer a realistic price which is creates a good deal for you at the same time. While you are researching, see how much information you can about the vendor. You never know what you will find that could help you push the deal over the edge.
So what are your favorite negotiating techniques? Do you know someone who is a fantastic negotiator? How do they get the best deals?