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6 Strategies for Property Negotiating Success

6 Strategies for Property Negotiating Success

Negotiating doesn’t come naturally to a lot of people. It’s seen as stressful and intimidating. But with a bit of research and insider knowledge, you too can negotiate like a pro using the tactics buyer’s agents use every day.

Step 1: Arrange a firm limit

Before embarking on the road to property ownership make sure to set a firm limit that you will not go over. Having a limit will help locate properties within your budget and clarify when it is time to walk away and find something else.

Step 2: Know your market

Each area has different trends and price points. Researching the area you hope to buy in will uncover what properties are available in your price range and whether different sections of the same suburb achieve different results.

Step 3: Know your property

Once you have found a property you would like to make an offer on gather information to determine why the current vendors are selling. At times this information can be used to your advantage:

  • Why is the house up for sale? If the current owners have bought a new house, they may be willing to reduce the price if you offer a quick settlement
  • Is the asking price comparable to other homes in the area? Research recent sales for properties in the same location with similar features
  • Is there damage to the property? Mould, dampness and structural defects can be very costly to fix, however they increase your negotiating power.

Step 4: Play it cool

Real estate agents are quick to put on a friendly smile and ask what your highest limit is. It pays to play it cool and avoid answering the question to strengthen your arguments when the time comes to make an offer.

Step 5: Start low; but not too low

A fair and reasonable offer goes a long way to making a vendor more likely to accept. Although we all want to purchase something for as little as possible, you don’t want to get the vendor’s back up and have them refuse to be reasonable with any counteroffer they may produce. Use your research to determine a fair price for the area and the condition of the property and offer at the lower range of your estimation. There may be a little back and forth, but with some commitment you may just secure the property for less than the asking price.

Step 6: Don’t be greedy

Experienced real estate agents will often say that the one of the main reasons a vendor rejects an offer is because they believe they are losing out with an offer. Vendors want to feel as though they have won the negotiation, so find creative ways to make them feel as though they are getting a good offer whilst you snap up a bargain. One way to do this is to offer reasonable settlement conditions. Owners of vacant properties will often respect an offer of a 30-day settlement, however those looking to move interstate or overseas may appreciate to maintain the residence for a while longer. Find out what would work best for the owner and use that to your advantage.

Learn how a buyer’s agent can create ease in finding your next home, talk to the friendly team at Wise Real Estate Advice for more info.

23rd of June, 2016. By Mark Ribarsky

Property Buyers Guide

 

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