OK, so you’ve found the property for you; the one that ticks every box. No matter if it’s your dream home or an investment property, negotiating is essential. This is because if it’s right for you, chances are it’s right for someone else too.
Here’s how to negotiate with confidence, so that you can beat the competition and successfully secure the property you want.
Be Serious About Your Offer
If you have done all of your research and you feel as knowledgeable about this property and the location as you possibly can be, then be serious about your initial offer. You’ll know what the property is worth and what to offer. That’s not to say you should offer the asking price, its called negotiating for a reason. But, if you throw out a number far below its value, chances are you’ll end the negotiations before they’ve even begun.
Your initial offer should be close to what you know its value to be, below the sellers asking price and a fair figure that gives you and the seller a good starting point for negotiations to begin. A fair value figure will set you apart from those simply searching for a bargain, and place you in amongst the real competition for that property.
You Must Be Willing to Give and Take
There is a give and take to every negotiation. You must be willing to give up some things in order to get what you want. For example, you can negotiate on: the length of settlement, deposit amount, existing tenant conditions or vacant possession, fixtures or other such inclusions, etc. All of these things should be discussed as part of your negotiation and used to your advantage if you can.
Be Realistic & Be Prepared to Walk Away
If a seller is being unreasonable and is simply asking for too much money, you need to be prepared to walk away. No matter if you become emotionally attached to that home or apartment, if the price isn’t right then you need to let it go. Sometimes a seller has a set figure in mind and won’t budge, which may even mean that they themselves purchased that property for more than its value and won’t accept a loss. You want to avoid being in a similar situation, which means you need to accept that it just wasn’t meant to be and move on to a place better suited.
It’s important to stay reasonably detached during negotiations. This will give you more control over the outcome and you will be much more likely to achieve a positive result. Seek advice from trusted friends or experienced professionals, be ready with your finances and stick to your budget. Above all, if it just doesn’t feel right, move on to something that does. You’ll know it when the right property for the right price comes along.