You’ve done it, you’ve found a house! It’s perfect and you love it and it’s going to be your new home. You’re about ready to start the negotiation on the price, but wait – are you really properly equipped for this? Do you have the necessary tactics to drive the negotiation and get the price you want – and that’s fair? If not, you might want to take a look at these 4 negotiation tactics to get your perfect property for a perfect price!
Know where you want to end up – and don’t start there
The first thing you need to know is that you absolutely cannot enter a negotiation without knowing what your price limit is. You have to know exactly how much you are willing to pay, ultimately. You can’t waver on this and there is no room to change your mind once you’re in full swing. So, place a firm boundary for yourself.
Now that you know how high you’ll go, you have to know not to start there. By nature, a negotiation involves give and take, so the price will change. The asker starts out by asking for more than they are willing to accept, and you start out by offering less, giving yourself room to grow in order to make your offer more attractive.
Leverage any faults the house may have
Look – any house, however great it may be, will have some faults. Some will be minor, others not so much. You should use them to your advantage, regardless. Some of these faults will need to be repaired, replaced, changed, etc. That will take time, money, and effort, and that needs to be acknowledged and accounted for. That needs to be reflected in the price, so you have a leg to stand on to request a lowered price or the potential refurbishing of the aspects in question.
Use similar properties to your advantage
In order to come out successful out of a negotiation, you must do your homework. You have to inform yourself and study the market thoroughly and go into it with excellent knowledge of not only the property in question, but also the similar properties around in within the same neighborhood, in other neighborhoods, etc. Look at these houses – for how much do they sell? After how much time? Is there a demand for this type of properties, or are they a hard sell? Do the sellers make a profit, or do they take a hit? Do they typically come with upgrades and refurbishing offers?
All of this information should be used to bolster your chances to buy at a better price. Compare this property to the others you’ve studied up on and use them in order to manipulate the negotiation in the direction you want it to go.
Don’t show your emotions
Let’s say you’ve stepped into the house and you immediately know you love it. It has everything you were looking for, potential for future upgrades or expansions, and it’s the right size. Even the price is reasonable. You’re basically ready to just throw the asking price at the seller and yell “I’ll take it!”. But not so fast – putting your cards on the table like that will cost you – literally and figuratively.
You must never seem eager, because that will give the seller leverage to try and get as much money as possible from you. After all, they know they’ve got something you want. It’s best not to show that you like it or dislike it at all. Treat this neutrally, like you could take it or leave it.
In conclusion, there are ways to make sure that the house of your dreams will be yours. If you’re looking for new homes, you need to be prepared for whatever negotiation follows.
You just need a few tricks up your sleeve and you will be able to secure the house of your dreams. Something as simple as knowing the property, knowing the price you want to pay, as well as having the right knowledge abut similar properties can give you the advantage you need to come out victorious from this negotiation.