When we are looking for a new perfect property, a lot of factors come into play, and often the most important of them is the price. A low price for real estate can persuade us to buy property that has a few significant defects, while unaffordable price can make us refuse to buy the property of our dreams. However, in most cases the price set by the seller is not final, and, using our tips, you can achieve the best possible deal.
Study the market
The whole property buying process requires your excellent knowledge of the real estate market, and negotiating the price is no exception. Only when you know the average prices for the same type of property you’re looking for, you can decide if the price offered by the seller is fair. A lot of factors influence the price and demand for the property, so if your dream house is not conveniently located, lacks some basic necessities, or has some other noticeable drawbacks, you can always point them out to the seller and get a better price.
Know that negotiation goes both ways
In every real estate deal negotiation is a two-way street, where the buyer wants the price to go as low as possible, while the seller wants to gain as much as he can from the transaction. Understanding this fact and putting yourself in the seller’s shoes will help you become better at negotiation. For example, if the seller is in a hurry to sell the property, you can achieve a great deal by promising to pay the money in full in a few days – when the seller considers this possibility against another month or two of negotiation, he may finally decide to lower the price, which is your ultimate goal.
Negotiate through an agent
Although it is possible to close a real estate deal without any help from third parties like real estate agents, working with an agent has a number of benefits both for the buyer and the seller. But there is one essential thing to note: if the agent was hired by the seller, he is obligated to achieve the most profitable deal for his client, which means the agent won’t put your interests first. In order to get the best possible price you can hire your own agent and let him do the negotiation with the seller’s agent.
Use the viewing
Viewing of the property is important for a number of reasons. Most importantly, it allows you to clearly see the advantages and drawbacks of the property you consider to buy. But it’s also a very useful tool in the negotiation process. First, even if you fell in love with the house the moment you walked in, try not to disclose this fact to the seller – otherwise making him lower the price is almost impossible. Second, try to find out how many people already viewed the property and how many of them came back for the second viewing: if the property isn’t really in high demand, the seller will be more inclined to bring down the price.
Don’t be afraid to get personal
Even though the property business requires a business approach, a personal touch can be very helpful for the negotiation process. If you really like the property but can’t afford it unless the seller gives you a big discount, you can try a few things. First, bring your whole family to the next viewing and introduce your loved ones to the seller. Second, if there is anything preventing you from being able to pay the whole price, you can tell the seller the truth and wait for his response. In the worst case scenario the seller will simply refuse your offer, and if everything goes your way, you’ll get the house you’ve always wanted for a great price.