How To Buy Properties At Lower Prices
Just like any other things that you would spend your money on, it feels like you’re getting the best value of a property you want when you bargain and get the selling price that works great for you. After all, we all probably know that most property deals are closed at a significant percentage lower than the asking price. Here, negotiation plays a vital role where you discuss your points with the seller and agree with a fair price for both parties.
While real estate agents can do this part for you, it’s best for home buyers to power up their skills to haggle and convince as well. Obviously, sellers will also roll up their strategies to close the deal with the highest price possible.
This game of negotiating properties for lower prices doesn’t come with an ultimate handbook, so we’ve rounded up some tips on how you can win and score the deal according to your terms successfully. These aren’t fail-proof, but definitely handy tricks that are worth trying.
Get in the know
The adage “knowledge is power” has never been this true whether you are a seasoned home buyer or a first timer. Before laying out an offer to the seller, make a comprehensive research and get acquainted with all the things you need to know like the market trends (true asking and selling price in the market), its median price in the market, similar properties and their selling prices, and even the date when the listing was first posted. This will help you gauge your offer because the price will most likely go lower for properties that have been listed longer. It’s also ideal to know other offers for the property you’ve been eyeing on to be informed with its generated interests.
According to many experts, negotiation is always best led with facts, not emotions. The more you know, the better your argument will sound in the sale process and the lesser chance you’ll also be taken advantage of. Knowing these things gets you ahead in the game and gives a fair basis to support your points during the negotiation with the seller. On top of all these, the seller will have a notion that you are indeed a serious buyer because you did your research.
Be extra meticulous in checking the property
It’s just intuitive for any buyer to inspect the things they’ve been wanting to buy and there’s nothing wrong with that, especially if it’s a property. Being extra thorough in checking for the things that may deem as a shortcoming or flaw can also be a factor in making the agreement. Assess the property so you can come up with a realistic price. Visit and look into the details for future maintenance and repair costs, structural soundness, landscaping, furniture quality, configuration of spaces, and so on, if there are any. If you have extra cash, you can ask for an expert’s help on this. It may be an additional cost for now, but it will actually save you money after all the negotiation. Knowing and stating the downsides of the property, no matter how small, may help you bring about sound arguments to the seller to lower the price.
Don’t be afraid to ask for a discount
After studying about the property and setting your heart into convincing the seller, it’s time to finally negotiate and ask for a discount. Here’s a top tip: For new properties, developers often have discounts in place but they only get discussed when a buyer asks specifically for it. Be confident, but not too much, in doing so. As the saying goes, there are things that you won’t know and you won’t get until you ask. However, always stay realistic as the sellers might probably give a different light to your intent in buying if you start making lowball offers. Sellers will definitely put the worth of their property on the table and reason out in the best way possible just to also convince you that their property is priced right. When you ask for the discount, explain the reasons why you think you deserve it and use what you’ve researched and checked about the property.
Make the most of your interpersonal skills
Sometimes, it all boils down to how you establish rapport with the seller and with the real estate agent as well. Just to remind you that at the end of the day, the agent works on behalf of the seller, and not for you. Exerting effort to amplify your interpersonal skills can be incredibly beneficial to you as a buyer. Start by practicing your argument in front of someone you trust (better if it’s someone who’s also knowledgeable in a property sale process) and let him/her notice if you appear too giddy or enthusiastic about the property. Another key to persuading is to present yourself as a trustworthy buyer by giving the seller adequate and obvious reasons that you won’t take advantage of him/her. If you are lucky, they might even give you a nice price to begin negotiating at, even if you haven’t asked yet. Also, exude positive attitude and fairness. Remember to never be aggressive and arrogant. Sellers can also sense if something doesn’t sit right.
It also wouldn’t hurt to be careful not to tell everything to your real estate agent such as the limits of your budget and how desperate you are to see and buy the property. When they sense your urgency, it’s more likely that they won’t give in to your offer.
You can play the long game
According to some testimonials of experienced real estate agents from Forbes Real Estate Council, if the deal wasn’t sealed on the first try, you might probably have it if you try again after every 30 days as this was seen as an effective strategy. You can play the long game by being patient while still keeping an eye on the property in the market, observing, and getting updates from the sellers from time to time. This allows them to feel that you are still interested if given a chance, but not too keen. Also, because again, the longer that the listing has been there, the bigger chance you’ll have of getting the property at a lower price.
These tips will hopefully help you avoid a potential financial mistake and land a good deal when getting your dream property. If you’ve tried everything on this list and it still doesn’t work, you can also insist on other ways to save money like getting them to pay other fees or request for some additional furniture. Most importantly, keep in mind that there is a built-in leeway for the listing prices in some properties and they are often negotiable.