subject: House & Land Packages How To Negotiate The Price Of Property [print this page] If you are currently searching for house & land packages, it would not hurt to equip yourself with some negotiation skills before diving into the market. One of the most common reasons that buyers walk away from a property deal feeling short-changed is poor negotiation techniques dont let yourself fall into the same boat!
But what steps should be taken in effective negotiations? This article will address a few key fundamentals: learning the market, establishing leverage, and considering the minor details. Lets take a look
Start with Market Knowledge
Before you even think about approaching a negotiation, you need to do plenty of research on the current market. The true prices of all house & land packages are relative a home is only as expensive as other homes that are similar in structure and location. A smart seller isnt going to be completely honest about the true price of a property right out of the gate; its up to you approach the negotiation with accurate information regarding comparison prices so that you can justify challenging the sellers standing price.
On the other hand, if research has proven the current price of a piece of property to be an accurate reflection of the market, then youll want to employ negotiation skills for a quick close. This is to prevent other potential buyers from swooping in and offering the seller more money (which is usually more money than he or she deserves).
Try to Establish Leverage Whenever Possible
You can have all the negotiation skills in the world, but if you do not have leverage, then your efforts to purchase house & land packages will be in vain. For example: you did your research before placing an offer on a piece of property, but, unfortunately, youre among a pool of ten other potential buyers. Now your offer is nothing more than just that an offer. And the seller is going to select the offer that entails the most profit.
So what is the solution? Dont put yourself in situations where the seller is in complete control. Leverage is the key part of doing research is finding opportunities in which you can have the upper hand in negotiations. There are plenty of properties out there that are worth buying that have not yet been discovered by a large pool of buyers. You just have to look!
When the Price Is Right
It isnt at all uncommon for two house & land packages to be very similar in both price and structure. In this case, the focus moves away from finances and shifts to the small details that often go unnoticed: renovation agreements, permissions, covenants, subtle repair requirements, surrounding environment, and more.
Renovations are typically the most important factors here if promised by the owner, they are technically concessions that lower the price on the home, because you would otherwise have to pay for these upgrades yourself. Convincing the owner to offer renovations is all part of the negotiation process.
So lets quickly summarize: effective negotiating involves a combination of market expertise, leverage, and lowering the price of property in ways other than lowering the raw price. Purchasing house & land packages can be a fun and lucrative endeavor just keep in mind that negotiation skills make the difference between a successful purchase and a loss of money.
