Let’s be real: buying and selling property can be daunting, especially if the seller and the buyer need to see eye to eye on the price and value of the property. Considering that the two parties may have different interests in mind, one party may feel they got the shorter end of the deal. That is where the power of negotiations comes into play. Ideally, negotiations satisfy both the needs of the buyer and seller.
However, before coming to the negotiation table, one needs to remember that the discussions are all about building trust and mutual respect. It’s about finding the ideal solutions rather than bidding against each other; remember, it’s closing a property deal and not some auction.
While some may argue that you won’t get much from negotiating, it’s all about the approach you take.
So, how do you get the most out of your property negotiations?
Here are some practical tips you need to keep in mind before closing a property deal in the Elgin property market.
6 Tips To Practice To Have The Best Negotiations
Arm Yourself With Knowledge
Like most business transactions, you’re more likely to get the best deals if you have a clear understanding of the market and the value of a product. As a real estate buyer, comprehending the current market standings and the actual value of the property serves as a clear advantage.
The questions to keep in mind are: how much can I get a house for with my list of must-haves? What raises the value of the property? What factors make the price of the house fluctuate?
Get busy and do ample research about the neighborhood where you want to buy your property. Look up properties online with similar designs and architecture and see how much they cost.
Seek a Professional’s Help
Researching and looking into property sales and value may take time and effort. If you need help in your research, then enlist a real estate agent. No doubt, an experienced agent will have a clear understanding of the property value and pricing and can advise you, the buyer, accordingly.
Besides, the real estate agent can do the negotiations for you. Since they have enough experience in their field, they can get you a better, much fairer deal. So, what are you waiting for?
Get your agent on the dial now.
Always Know Your Highest Bid Before Negotiations Start
What are you willing to spend to get your property?
Do you have a rough estimate and really don’t have a clear figure in mind? Then, get working and set a cap on how much you’re willing to spend.
For instance, if the seller offers you £250,000 for the property, and the maximum amount you can spend is £230,000. Don’t start negotiating from that exact price; what if the seller gives a final offer of £240,000 and is unwilling to go any lower? You end up getting frustrated and spending more than you should have. So, set a ceiling and know how far you can go, then start negotiating at a lesser price than your intended spending. For instance, in our case scenario, you could start bidding at £200,000. You can get it at a cheaper, more affordable rate, leaving you with some wiggle room for renovations and other property developments.
Keep Your Attitude and Emotions In Check
The involved parties must stay calm and relaxed throughout the negotiation process. If a seller mentions a high price you can’t meet, don’t throw a fit and let your emotions run wild. If the seller feels pushed or aggravated by your words or tone, they may refuse to negotiate with you, and ideally, you’ll lose a potential investment. Let the seller feel in control.
The seller also needs to remain calm to convince the buyer why the price is perfect for the said property and discuss further the counter price.
Go For A Win-win Situation
The best negotiations always end up in win-win situations where both parties are willing to compromise.
Be flexible and have an open mind before negotiations start. The last thing you’d want is to lose potential customers for the seller and a high-valued property on the side of the buyer. Both parties should actively discuss what benefits they hope to gain at the end of the deal and finally reach an agreement.
Imply You Have Plenty of Other Options
For either the buyer or the seller, the last thing you’d want to seem is desperate. Desperation is a losing position for any negotiation, especially when it comes to the buyer. Even if you find the property interesting, don’t come off as desperate. Mention to the seller you’ve looked around at other options and this is one of the potential properties you have in mind. Begging for an opportunity to buy the house may put you at a great disadvantage during negotiations.
Start Your Property Negotiations
Negotiations have long played a key role in closing property deals. Staying objective during discussions and communicating effectively with the other party will help you negotiate much better and get the deal you want. So, take into consideration these tips and begin negotiations today.