One of the keys to getting a property that is good value is knowing how to negotiate. I’m sure you know a talented negotiator, one that can get discounts off anything – cars, houses, and especially at their local farmers market. They see the price as a starting point rather than the end point. When it comes to negotiating in property, there are a few key areas that can create a more favorable environment – for you.
Do your research
If you have done all your market research, you will be in a strong position to offer a realistic price which gets a good deal for you at the same time. Make sure you are knowledgeable about the market and what you are buying. If you hesitate for a second, the seller will sense it and will be able to predict your next move.
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. Make it clear you have other properties you are looking at. The person who has more than one option will be the person who has the most negotiation power.
Your first offer will benchmark all other offers so go in high. The seller will undoubtedly come back with a lower counter-offer – you can always go lower, but you can’t go higher once the first offer is made.
Time is on your side
A vendor who needs to sell will be more open to doing a deal. 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 negotiating techniques have worked best for you? Let us know your successes.