Friday, March 21, 2014

Negotiation tips for property buyers

After you've found the perfect home to buy, the next step to take is the negotiation process. Many may view the art of negotiation as a tedious exchange of frustrating offers. Although the key goal of negotiations is to get a favorable deal, this does not mean that one of the paties is the loser and the other a winner. A well-negotiated deal will have a price, terms and inclusions that are ideal for both parties.

Don’t be afraid to ask for concessions. These can be made on the contract price, perhaps a smaller deposit amount or longer terms of payment.

Make an offer you can afford

Check your financial situation to see how much you can afford on the initial deposit and outstanding payments. No matter how much you like a property or how great it could work for you and your family’s lifestyle, don’t make an offer you can’t afford. This will only make for problematic finances later on. 

Communicate through a real estate agent

The real estate agent can smooth out bumps and minor problems in a negotiation process. As a third party to the property transaction, the real estate agent serves as a good sounding board for airing needs and concerns. A licensed and experienced agent will also be well versed with real estate legalities. Thus, he or she will be able to voice any concerns you may have in a more agreeable and legally correct manner. 

Make timely counter-offers

Counter-offers should be made within a reasonable timeframe, particularly if the property and price make for a good deal. This will prevent other buyers from snatching up your prospective home while you’re not looking. It will also communicate your interest in the property as a serious buyer. 

Ask for concessions

Don’t be afraid to ask for concessions. These can be made on the contract price - perhaps a smaller deposit amount or longer terms of payment. You may also negotiate on who shoulders the closing costs, as these expenses are also significant. Ask for more than what you are willing to settle on, and you may just get a better deal than you expected.


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