Negotiation is an important skill that can either win or lose a property deal. Lee Armstrong from Fine & Country Derbyshire gives negotiating tips.
The art of negotiation is a surprisingly underrated skill when it comes to property purchases. Agents are negotiating on behalf of their vendors and have much more practice than most buyers, who will possibly only purchase a property a few times in their lives. If you are a buyer, there are techniques you can learn that will help you secure the best deal.
Once you’ve found a property that fits your needs and you are ready to make an offer, understandably, you don’t want to pay more than you have to. This is where background research kicks in. Knowing the value of a property and how the market is trending in the area will help you when it’s time to negotiate. This can be done by comparing properties in the area and checking the price of sales in the past few months.
Keep in mind that a real estate agent is working for the vendor and attempting to get the best deal for them. It is important to communicate clearly and openly with the agent, but you don’t need to disclose your budget. Putting all your offers in writing and being easy to deal with can help your chances if you are competing with other interested buyers.
When working out how much you should offer for a property, you should take into account how long the property has been on the market and why the vendor is selling. The motivation of the vendor can indicate how flexible they are likely to be around the asking price. If they are after a quick sale, they will be more likely to accept an offer below the asking price. Be careful to look at any defects the property may have, as this may also provide room for negotiation.
It is important to stick to your pre-determined budget limit. If the price of a property is taken out of your reach, be prepared to walk away. It is difficult to take the emotion out of a purchase, but no matter how much you like the property, it is important to believe it is not the only one for you.
Negotiating is all about compromise. If you can make an offer less than your maximum limit, it leaves room to move. It is not always about price either, so working out other aspects you are willing to move on will give more chance of achieving a desirable outcome. Preparing properly with a clear goal in mind of what you want in terms of price and contractual terms is essential.
Finally, listening carefully will help you understand where the other person is coming from and make it easier to work out an arrangement that satisfies both parties. The best outcome is a situation where both sides walk away happy with the result.
For advice on selling or buying property, please contact Fine & Country Derbyshire on 01332 973 888 or visit www.fineandcountry.com