Investing in real estate, especially buying property, can be an intimidating affair due to complex issues such as rent, prices, tenants, renovation regulations, etc. Working with a real estate agent or partnering with a trusted developer can help you understand the ins and outs of your purchase.
In some cases, however, it’s not a bad idea to possess negotiating skills yourself. Perfect the art of negotiation by learning a couple of handy tricks.
Start Low with Your First Offers
Going low with initial offers is a basic haggling skill. This haggling technique is effective in gauging how flexible your seller is. Although in some cases, buyers must put an offer before they could learn more about the seller. Whatever your situation is, you can start lower than the amount you can pay then you can go higher later.
If the seller asks why you went as low as you did, you can list some shortcomings a potential buyer would have to deal with once the sale pushes through. You can also mention that there are other properties nearby with more affordable price tags. This lets sellers know that you are intentional with your offer and the purchase of the property.
If you have found a potential property, determine if the property hasn’t generated a lot of interest yet. This can give you more reasons to start low with your offers. Your real estate can help you be informing you of the number of viewings and if anyone has made an offer yet. You can also do your research to find out where the property was first listed. The longer a property has been listed, the more likely the seller would be willing to go below their asking price.
Another way to negotiate for a lower price is to research on the properties nearby. List down their similarities with your potential property. Determine their asking prices so you can improve your haggling arguments.
Get a Mortgage (in Principle)
Know your rights — this is the first step in the negotiation, too. You can apply for a mortgage putting down an offer on the property (also known as a mortgage in principle). If you get the deal, you’ll gain a good idea of the amount of money you need to make a purchase. In terms of negotiation, a mortgage in principle will make you seem like a serious buyer to the seller.
Play It Cool
It might sound like a basic Haggling 101 technique, but playing it cool can help lower the price. It’s a technique right out of a real estate agent’s book. By implying you have other options, you can encourage a seller to agree to your asking price.
Finally, be thorough with how you haggle down the property’s price. View your desired property meticulously. This allows you to spot any shortcomings in the property that could lower its price.
Haggling isn’t just a technique you use when buying clothes; it’s a technique that comes in handy when looking for a property to invest in. Practice the skills above to secure a property with your asking price.