subject: Some Negotiation Tips For Purchasing Real Estate [print this page] Negotiation plays a major role when we are going to purchase real estate. Here are some tips to help you negotiate for a better price on your next real estate purchase.
Every day, new investors looking into investing in a new piece of real estate ask "I thought the real estate market had depreciated; why these arent prices much lower?" The prices of property don't seem any lower because sellers are still hoping to sell for what real estate was worth three or four years ago, and it's your job to negotiate them down to a more sensible level. Let us see some of the real estate negotiation tips.
Dont tell true price range to your real estate agent
Real estate agents usually make a percentage of the total sale, and by that make more profit when you spend more money. Drop your true price range by at least 8 to 10% when speaking with a real estate agent, and make sure to highlight the lower end of your range, so that they don't stress you with homes outside your soothe range.
Don't try to dive in before research
It's enticing to just start looking at real estate, but the reality is you must know what you're looking for before you start meeting sellers, asking more questions, and evaluating properties. Take a look at median neighborhood home values, median cost per square foot in that area, and the values of facilities like pools or fireplaces in that neighborhood, before speaking to a real estate agent.
Try to learn the sellers' background and stories
Why the sellers are selling now, and how urgently they want to sell the property, will make a large difference in how low they'll be eager to go. You can often learn a great deal from about the sellers' circumstances from their listing agent, so you better ask them all about the seller's circumstances. Sometimes sellers would rather sell immediately than wait for months and months for the good offer, hence highlight how quickly you can settle when you make that lowball offer.
Dont tip hand when you like a house
Don't disparage the property to the seller, as their home after all, but don't let them know just how much you like the home, either. Rather, you may ask some questions like; whats the asking price? Why do the sellers want to sell the property? How long have they inhabited the property? What updates, maintenance, and repairs have they performed? When are they interested in settling?
Make Them Convince You
As many real estate investing professionals know, the person who is being inclined has the most power, so let the inventory agent and the sellers pitch you on the property. Show some unwillingness, hesitate a little before making an offer, but an important issue is don't seem anxious in the least.
