The real estate market is highly competitive, and knowing the right negotiating tactics can make a difference when buying a new home or completing a property transaction. Buyers, builders, and sellers alike always want to get the best deals for themselves, with most employing various negotiation techniques. Without adequate preparation, you can end up with an unfavorable deal, lose lots of money, or even miss out on acquiring your dream property. So, are you looking to purchase your first home or acquire several properties and want your deal to end with ideal outcomes? These real estate negotiation tactics work.
Listen to the seller’s first deal before presenting yours
Don’t be in a hurry to make the first move when negotiating. Instead, propose your initial offer after the seller has. Believe it or not, some studies show that naming your price or proposing your offer second can get you a better deal. So, always listen to the seller’s first deal, think about it, and then present your offer. When you make the first move, you could easily end up proposing a higher offer or naming a higher price than the seller may have anticipated.
Know your stuff
Before entering into any negotiations, take the time to learn everything you can about the property in question. The last thing you want is for the seller to catch you by surprise with an update you’re unaware of. But don’t end there. Thoroughly research the property types in the area, their types, prices, potential problems, and high points aside from the one you’re looking to purchase. For example, if you want to buy a townhouse, look up the prices of other townhomes, apartments, bungalows, or commercial properties. Considering how quickly real estate negotiations can go, getting caught unaware of a situation or information is very likely. So, arm yourself with the knowledge of the property types and factors that could increase or decrease the cost of the property.
Use the power of silence
Silence is a powerful negotiating tool, especially in real estate. It keeps you from making a follow-up offer too soon and compromising your stand. When you make your offer, remain silent and wait for the other party or seller to respond. Doing this will create a sense of urgency, causing the other party to return with a more favorable counteroffer. Staying silent can also ensure you maintain control of the negotiation process while avoiding making unnecessary concessions.
Be willing to walk away
Another important negotiation tactic in real estate is the willingness to walk away from a deal if you believe it isn’t right for you. Of course, this is sometimes tricky, as it requires good judgment. But your wisest move is to stick to your cards regarding what you can afford and what you’re looking for in the right property. Understandably, walking away can be tough, especially if you’ve invested much time, money, and effort into the negotiation process. But remember that you need to protect your interest, and you can’t do that by accepting any deal tabled before you. Walking away could keep you from making a costly and irreversible mistake. Even better, it will send a message to the seller about your seriousness.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)
