This article is for property buyers especially wanting to learn how to negotiate property prices. However, it can be beneficial for sellers as well. In this article, some negotiation techniques are discussed regarding property prices. Buying and selling is not like purchasing biscuits from a local shop. You need to be careful while selling or buying a property. You can get the best price for you property if you negotiate with them effectively then there is no reason why you cannot net a property bargain.
Meet your estate agent and obtain as much information as you can about the seller’s position. Do they want to sell their property quickly? How long have they been looking for a buyer? Answers to these questions will give you an idea if the seller will be willing to drop the price or not. The estate agent is the person who knows very well what price the seller would accept. He should not be disclosing the information directly but doing this will benefit him, as this may result in the settlement of the deal. Keep the questions coming and make it clear that you are interested. Suggest to your seller that you will not think of buying the property unless the seller drops the price. Make an offer and then wait to see what their response is.
Do not give anything away
This technique is related to the previous one. You should not let the seller know about your situation. The more he knows about your circumstances the better he can estimate what price you would be willing to pay. Do not let the seller know how much you can pay or how big your mortgage is. You should stay vague. If you love the house, inform them you have interest in it but be careful regarding disclosing the intensity of your feelings.
Try your luck
Try putting a crazy offer in at first and see what happens. Nothing ventured and nothing is gained. You need to keep them interested but equally this is a huge investment, so keep in mind what you would like to pay. If you keep on making unreasonable offers, it will make the seller doubtful towards you. Find a middle ground and negotiate. If you offer a lower price, give him a logical reason for it. For instance, you can say that the house needs to be painted again, the kitchen needs to be modernized or there is a constant noise coming from the train station etc.
Create a time pressure
If the seller shows interest in your offer but wants to wait for a better offer, turn this to your benefit and create a time limit. Do not say ‘I have one week to decide.’ Create a logical reason that the seller will feel reasonable. You may say to them that you have another house to see but it does not mean that you have decided not to buy their house.
Make your offer and the chance to sell to you attractive
Make your offers more attractive by offering different incentives. For instance, you will pay within one month or immediately if the seller agrees on a lower price. But make sure your mortgage is in place. Reassure them of your commitment to sale and reliability and try to gain their trust. Tell them in detail how you would make the process of sale smooth.
Know your bottom line
Before negotiating, you should know what the top price is that you can afford to pay and stick to it. Decide on it with a cool mind beforehand. Do not let the seller know what your top limit is unless the deal is settled. Good luck!