So, you finally found the perfect property and are itching to dig your pockets to pay the seller and move-in to your house. Hold it!
You might’ve found the right property, but can you get the right price? Here are a couple tips for negotiating a purchase price. Don’t forget to look into using a grant deed form, it’s a good idea to learn about it before you need to use them.
Understand negotiation. Knowing the reality that negotiation is a two-way process will make it less daunting. Each party, whether the buyer or seller need to acquire something from the transaction to be happy with the outcome.
Putting yourself in the seller’s shoes will help you work out how to best play your hand. For instance, why is the vendor selling the property? And how can you present the case around your offer, as well as the best time for a successful outcome?
Understand the market. The amount you’re willing to pay for the property is only a part of the equation. Auction and sale prices are determined by demand, and how much others in the market want to pay for the property. Make sure that what you’re researching is up-to-date and comparable sale prices for similar homes in the same area before raising your offer or bidding at auction.
Understand your limits. Real estate is a very emotional purchase for most people. Be aware of your upper purchase limit and stick to it. Don’t allow yourself to be caught up in emotion, especially for sale or auction. Consider all your options and think carefully before presenting your offer.
Always have a price limit fixed firmly in place and try not to exceed that limit. Many buyers ask others to bid on their behalf to avoid making emotional and hasty decisions.
Confidence matters. Put any negativity and fears to the side. A positive and confident attitude is a vital factor in any kind of negotiation. Say you really want the house, you may talk about similar values with the seller, show genuine respect for the property, and communicate your desire to enrich it. Most sellers are tied to their homes and would like the next owner to cherish the property as much as they do.
Make use of agents. In many cases, the seller will hire an agent to sell the property in his or her stead. In this case, you should avoid negotiating directly with the property’s seller, and always redirect back to the designated agent even if the seller initiates contact with you directly.
Agents will be able to find you the best deals based on your preferences. For example, agents can locate house and land packages Sydney that will suit your needs for open spaces, near amenities requirement, and other points that you want in a community.
Agents are an integral part in the negotiation process, so make sure you are professional, polite, respectful and make a good impression. Clear and open communication is important. Resist the temptation of game playing. For example, hiding your interest in a property can backfire if the agent doesn’t take you seriously as a buyer. Also, don’t put all your cards on the table at once without thinking it through.
That’s it! You can always talk to your agent to know more negotiation techniques when it comes to buying your properties. Best of luck!