How to Negotiate Your Real Estate Purchase

make the right choice

Are you ready to negotiate? In order to it the best way possible there are 5 crucial steps of a “real estate purchase” preceding an effective negotiation. You should know that there are almost as many negotiation techniques as there are buyers and sellers. But they are not all effective!

The right technique is one that will be suitable for:
• Your situation (profession, intake, age, etc…).
• Your personality (shy, on you, etc…).
• The situation of the seller (pressed or not to sell).
• The type of property (location, quality, work, etc…).
• The market (successful or not).

Take care of your credibility for all your purchases.

make the right choiceTo be an effective buyer you need to know what you can afford. In order to exactly know what you can afford the best thing to do is to take an appointment with your bank so you can calculate your debt capacity. This will also allow you to set up your budget and find the best bank for your mortgage.

A few questions you should ask the seller.

• The reason why the owner is willing to sell his house.
• To which extend you can negotiate.
• The number of proposal and their amount.
• How long the property has been on sale for.

Do not believe that the answers you will get will necessarily be true though. However, they will allow you to better understand the situation and the personality of the seller.

Negotiation is a duel and here are your weapons:

Reactivity
Offer to sign a sale’s agreement the very next day, as it will impress the seller.

Make an Offer
Make a written proposal in order to show that your commitment is not verbal.

real estate nogociation is an artRemember to choose the most adapted way of negotiating according to your personality and the seller’s. Also know that there is no perfect strategy and that everything a good negotiation lies in the mix of the below elements.

Electric shock
You need to have: Audacity.
Make a proposal that you think unacceptable so the seller will be destabilized. If he believes that you are credible, he may unveil his bottom price through its counter proposal. You then can accept it or make a second electric shock.

The confrontation
You need to have: cold blood.
Make a non-negotiable proposal at least of 20% less than the fixed price. It is here a make it or break situation.

Persuasion
You need to have: patience.
List all the elements that will justify the proposal that you make: bad energy balance, noisy environment, the views, the neighbourhood, etc…
If you are right and that these remarks are indisputable, you will make the seller uncertain about the price he fixed. He might even lose confidence in the quality of his property and will be all the more willing to accept the estimate you make.