You will need an experienced negotiator in selling or buying property. In this case, your target as a buyer will be quite different from the seller’s. You will always fight for the lowest price while the seller wants as high price as possible.
Generally, a seller has already been experienced in negotiating. They are good at making the buyer interested in the offered property. You, as the buyer, do not need to worry anyway. You yourself can also become a great negotiator by considering the tips for successful property negotiation as follow:
1. Avoid Emotional Involvement in the Transactions
Involving emotions in property negotiations and transactions is not a good thing. When you engage the emotions in the process of negotiation and transaction, then the price you get will not be as what you have desired.
2. Prepare to Compromise
There is always a compromise in any negotiation process. However, make sure you can control the negotiation process so that you are on the side that wins the deal.
3. Make an Offer
If you are interested in the property, you can put your offer in straight away or you can wait to see if anyone has made an offer. Preferably, you want the seller to be chasing you for an offer, not the other way around. If the seller is chasing you, it can be an indicator that he/she wants to sell the property quickly. If you are continuously chasing the seller, there may be a more desirable bidder on the cards.
Before make an offer, you also need to consider the cash flow and capital gains that you will gain from the property.
4. Know the Market Price
Before purchasing, you should do a survey to determine the prevailing market price for the property you want. By knowing the actual market price you can estimate how the maximum limit of the offer you should give. Moreover, by knowing the market price you can also guest what the motivation of the seller is, whether it is pure wish to sell the property or there are other motivations such as in need of money.
5. Negotiation Winner
The winner is those who last mention the amount of money. Make sure you are quite patient for the sake of the successful property negotiation. Let the seller mention the desired selling price first and wait until the he/she is willing to lower the price. If the seller is motivated from the beginning because of the need of money, it is certain the seller would not lose the opportunity to sell the house to you.
6. No Down Payment
If you can make transactions without down payment, which means payment is made by the bank, you are a great investor. This is what is called investment without any capital. Of course every investor wants this great thing. If there must be down payment, make sure that it is a small amount of money.
Image credit: selectedspain.com