How to Negotiate a Lower Price Property?
Buying property and investing in real estate can be quite an intimidating process in general. There are many complex issues to consider, and it can often turn quite tedious very quickly. Having a real estate agent on-call can be of great help in understanding all of the ins and outs of making a purchase. However, in some cases, it might not be such a bad idea to hone some negotiating skills yourself. How to negotiate a lower price of property can even be seen as an art. On the other hand, many would argue that you could actually do quite well for yourself simply by learning a couple of handy tricks. This guide will try to pull back the curtain on this important life skill.
Go low with your first offer
Starting low when negotiating is basically haggling 101. You want to assume this approach, especially when you are unsure about the seller. It may not be clear to you right away how flexible the seller is. Alternately, you may have to put in an offer before you have done all of your research. Whatever the case may be, you want to start lower than the amount you are willing to pay so that you could go higher later. This could help you lure the seller.
Always make sure you have fully expounded upon your offer; explain to the seller why you went as low as you did. For example, you could list some shortcomings of the property that the potential buyer would have to deal with and pay for after purchase. If you have managed to do any research, you should definitely mention any nearby properties that are going for a smaller amount while being within the same standards. This will let the seller know that you are serious about your offer and purchasing the property, and you haven’t just conjured up a number out of thin air.
Consider getting a mortgage in principle
One of the ways how to negotiate a lower price of property is knowing your rights. What could definitely help you with this is learning about the housing loans that are available to you. You can apply for a mortgage without having made an offer or without even setting eyes on a property. This is called a mortgage in principle. This can help you in a variety of ways. Firstly, if you get the deal, you will know exactly how much money you stand to get for the purchase. And secondly, and more importantly, for your negotiating position, it will make you seem more serious in the eyes of the potential seller. Being able to say that you have acquired a mortgage in principle will make the seller take your offer more seriously and will be more likely to finally accept your offer as opposed to someone else, even sometimes if they offer them more.
Information is key
Much as with any important life event, it is paramount to do thorough research before making any final decisions. If you’ve found a property you like, one of the ways you can know that you can come in with a lower offer is if the property hasn’t generated a lot of interest yet. Your real estate agent can be of great help here. You can easily check this by asking them about how many viewings there have been and if anyone has made an offer yet. You can also do your own research and see when the property was first listed. The longer it’s been, the more likely it is that the owners will be willing to go below what they’re asking for.
Another way to know how to negotiate a lower price of property would be to research the properties in the vicinity. You should look into the properties that have as many similarities with your chosen one as possible. Knowing what their asking prices are can provide some good arguments when you’re haggling. This is only true, of course, if those properties cost less than the one you have your eye on.
People who know how to haggle down a house price are the people that enter the process in full force. You want to view the desired property very thoroughly. This will give you a chance to find any shortcomings that you may use to lower the price. Some major areas that you should cover are appliances like the boiler, then asking about the roof and/or windows. You can even hire an expert to evaluate the property and come up with a more realistic price. This is a service you will have to pay for out of your own pocket. However, it could actually help you save money in the end.
Play it cool
It may sound like a basic way how to negotiate a lower price of property, but playing it cool and implying you may have other options is a great way of having sellers agree to a lower offer than their asking price. This is a trick straight out of a real estate agents’ book. They will often make it seem as if the offers are simply pouring in order to try to cinch the deal more quickly. They do this, whether it’s based in reality or not. There is no reason why you shouldn’t use their favorite weapon against them. Imply that you are interested, but that your attention has been grabbed by other properties as well. If they see you as a serious buyer, this might actually force their hand into accepting your lower offer.
Hailey Richards is an American writer covering mostly real estate and finance. She often collaborates with moving companies such as Japan Relocation Services and works on their blogs. She has been living in Tokyo for the past two years. This has allowed her to pay attention to the slant her favorite areas of interest take in Asia.