Real Estate Deals Negotiating Tips
By: Ankan | Posted: 21st February 2012
Real Estate negotiation is a critical part of the property transaction. Your prospects of clinching a better deal will increase if you are a better negotiator. To win the best deal you need to develop certain negotiating strategies and tactics and know when and how to apply these to your benefit. Here are some negotiating tips to help you close Real Estate deals.
Start With A Fair Price
If you are a seller, make the right offer, make the right price. If you quote a very high price, your buyers would instantly turn your offer down. And that simply was not good for you as you would be losing prospective buyer. And as a buyer, you should not negotiate or offer too low price as well. The seller would not be at all interested to sell off the property to you no matter how much you like to buy it. So, set a price which goes well with the current market trends. For that you must really equipped yourself knowledge of the prevalent prices in real estate market of the locality
Respect Priorities
Learn to respect the priorities of the other side of the table. For example, your seller is not willing to lower the price, yet ready to make the heavy repair of the property or some important components of the transaction process, you may go for the quoted price keeping in mind that the overall transaction would be a fair deal for you. You may similarly settle down with a low price deal if you find your buyer is ready to bear other expenses of the transaction. Many times, buyer and seller have great problem regarding shouldering some expenses. Splitting up the responsibility would be very helpful to great extent
Be Quick On The Uptake
It is critical to respond to counteroffers as soon as possible and to avoid making a counteroffer with any term that is not truly a deal breaker. Delays in responding leave space open for another buyer to step in and create a bidding war, or even more likely, for the seller to perceive that other serious buyers might be out there.
Check The Comps
The more money you offer, the more likely the seller will accept. Your real estate agent only gets paid if the seller accepts, so you can see why some agents tend to include or emphasize the highest priced comparables, even if they aren’t the most similar comps for your property.
Make Your Real Estate Agent Work For It
If you are competing with other buyers for a property, your real estate agent’s prep work and presentation of your offer can be critical to your success. Always communicate with your agent to ensure you both are on the same page in terms of expectations and deal breakers.
Crunch The Numbers
Before you finalize your decision about how much to offer, have your mortgage broker run a monthly payment on your offer price and estimate your property taxes and insurance. Often, buyers inch up in price during the house hunt and in the course of formulating their offer, so it’s important to have a final check on the exact monthly and annual obligations you will incur if your offer is accepted.
Also, if you’re seriously debating between offering two different prices and are having a hard time making the decision, ask your mortgage professional to run the payment, taxes and insurance on both of the prices you’re considering.
Making the best Real Estate Deal negotiation is quite easy if you really know what you are doing. If you equip yourself with the right attitude and the right skills then you can surely start generating huge income in this kind of business. Just start building a good reputation and everything follows! To succeed in the Real Estate business you need to master the art of negotiation.
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Tags: prospects, extent, benefit, priorities, negotiator, bidding war, locality, current market, fair deal, market trends, prospective buyer, real estate market, estate deals