“You do not get what you want. You get what you negotiate.” Harvey Mackay. Negotiation plays a significant part when it comes to buying a property. Accepting a realistic approach and arming yourself with facts about the current market movements can help you get the best deal. Negotiating real estate deals, to put in simple words, is a lot more than just simple transactions. It’s a method, where you have to precisely shape your vent to reach the end goal – closing the deal.
In this write-up, we will discuss everything that occurs between your primary offer and the day of closing, and how to hammer out a real estate deal.
Negotiating real estate deals: Types
If you are a buyer, you can put yourself in a gainful position by gathering as much information as possible. Collect information about the house you intend to buy and the seller. You can use the information gathered while negotiating real estate deals.
1. Negotiating real estate deals: Price Negotiations
The first point of negotiation in a real estate deal is the price. As a buyer, it is always worth using your negotiation skills. Wondering how? The condition of the house is the primary aspect that comes into play when negotiating the price. An older house means unexpected maintenance and supplementary costs soon. It is best to carry out detailed research to look for any probable indications of repair or damage to the property.
2. Appliances
The second significant aspect while working out a real estate deal is the appliances in the house. On multiple occasions, the homeowners select to take the appliances when they depart from the house. This is a general situation in which you as a buyer have a vast scope of negotiation. In case, the seller is taking the appliances along, you can work out and reduce the price. This is because you will have to take care of the costs of including new appliances in the house.
3. Closing Date Negotiations
It is regular for sellers to counter the closing date that you suggest. One of the reasons sellers will pick another closing date is that they wish to move out hurriedly. This could be appreciable news for buyers. This is because a seller who is desperate for a rapid close will likely be open to settling for a lower price.
A buyer needs to be prepared for all of the above-mentioned conditions and be all set to make a counteroffer.
Negotiating & Closing Deal
1. Knowing the market
Once you finalize the property you want to purchase, it is suggested to get the rates of other projects in that neighbourhood. These rates will support you during your settlement. Check how the project was priced during the pre-launch stage. Besides, how the price inclination has been since then. If the prices have dropped since the pre-launch stage, you can negotiate and get better rates. You may carry out some background research on the builder, this would be helpful too.
2. Expressing interest
You should have a pre-approved loan ready; when you sit to negotiate with the builder. Besides, have an amount set apart just in case you have to make an upfront payment. At times, you might also have to make an offer even when you are uncertain if the builder will agree to take it or not. These will confirm to the builder that you are a buyer who is serious about the purchase. Once he is convinced, the builder might give you a better deal. Most importantly, this can as well increase your bargaining power if you negotiate as a group.
3. Negotiating real estate deals: What to expect
Don’t go into a deal expecting a giant discount. A builder will naturally offer a 5 to 7 % discount on the quoted price. If the builder rejected your preliminary offer, pause for a few days. This is because there are chances that the builder might call you back. Accordingly, you must measure the circumstances and learn to leave when the builder denies moving. Ensure that you have a set of options ready in case the deal does not come through.
Final takeaway
Negotiating real estate deals is tedious and time-consuming, particularly when you are not proficient. Professional negotiators are accomplished in the nuances of getting the best deal possible no matter what. Following some basic steps can help you grab the best deal!
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