When it comes to dealing in real estate, it’s important to master the art of negotiation. There’s always some room for leverage, and you don’t want to leave any room on the table, which can allow you to get a better deal than originally presented. Here’s what you should and shouldn’t do when making offers on a real estate property:
Do’s
Make It Clear You Have Other Options
While you to make it clear that you’re genuinely interested in the property, you don’t want to come off as sentimental or desperate. When the seller senses that you’re hooked on the property, they’re more than likely to stick to their asking price. On the contrary, being nonchalant and comparing their offer to other options makes it seem like you have other choices to pick from.
Rather than let you take your business elsewhere, they might make the effort of bringing down their price to accommodate you.
Go By Market Value
The seller’s price can be as jacked up as they wish to be, but if it’s unreasonable, no one will buy it. A property’s price depends on market value for the most part. Take a look at similar properties in the same neighborhood and set the price in a similar bracket for the most reasonable offer. There might be some aspects that the property in question has that could raise its price.
Location and amenities in the vicinity make a difference, but whether you’re buying or selling, market value is the best parameter to go by.
Don’ts
Low ball Aggressively
Your goal in the negotiation phase is to give a valid offer. It should be reasonable, and you might have to empathize with the seller to understand what they would want for the property. Commonly, people make bids that not only confuse but often irritate the seller. They might be convinced that you’re trying to waste their time, telling you to leave the premises.
Be aware of fair numbers and quote only those, not going below them.
Initiate Speaking During Negotiation
It’s recommended that you allow the other party to speak first. They’ll describe their goals and objectives for selling a particular property. Often, an owner needs a quick stream of cash, and the best option as a buyer is to incentivize them with fast payment and transaction offers. Attend to their needs and use whatever they say to build up your story.
Allow them to express their part of the story and use it to your advantage.
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