The art of bartering has been somewhat lost to the ages thanks to currencies. However, that doesn’t mean we can’t negotiate when dealing with property.
Whether you’re buying, selling, renting or investing in property, we’ve put together some excellent tips to help you strike the best deals. These tips are also great for other things too, such as negotiating who does the household chores and who has to go on the weekly grocery run.
Here are a couple of fantastic negotiation tips for real estate.
Negotiation Tips for Sellers
First, let’s start with some handy negotiation tips targeted towards sellers.
- Play hard to get – You’re the one with the product and you’re the one in control. Play hard to get by refusing any initial bid from the buyer. They’ll usually expect you to go back and forth on your prices, but by staying firm with your list price, you’ll quickly break down their confidence and they’ll start to offer what they’re actually willing to pay.
- Understand what you want – Not everyone wants to get the top price they can for a property and some people just want a quick sale. Ask yourself what you actually want from your sale. Is it to get rid of something quick? Do you have a reserve price in mind? Or do you just want to see how high buyers are willing to go? Your requirements are going to define your actions to formulate a plan before you list something on the market.
- Be more assertive with offers – Don’t just send offers back and forth. If you really want to show you mean business, then reject offers that you feel aren’t worth your time. Instead, ask the potential buyer to submit another offer. This shows the buyer that you’re confident in the value of your property and that you know exactly what it’s worth. This can occasionally put buyers off, but those are the types that are only looking for a bargain, not a house they can call home.
Negotiation Tips for Buyers
Now let’s take a look at some of the best negotiation tips for buyers.
- Be friendly with the seller – If you’ve found a property that you really want, then it’s in your best interests to be friendly with the seller. If you scoff at them for their initial price or mock them due to their counteroffer, you’re only going to get on the wrong side. Don’t let your initial impression ruin your chances of getting the property you want. Instead, cooperate with the seller to get the best prices possible.
- Don’t be afraid to go back and forth – You need to learn that sellers all welcome a bit of friction when it comes to making a deal. At the end of the day, they’ve got something for sale because they want to get rid of it so it’s not like they’re playing hard to get for no reason. They just want the best deal possible which is why you shouldn’t be afraid of going back and forth with the pricing. This will improve your chances of getting a fantastic deal and helps to cement the agreement.
- Learn the value of the house – When making an offer, focus on the value of the house and not the list price that has been mentioned. Look at sales on nearby streets or in the neighbourhood and make a smart decision based on your perceived value.
Negotiation Tips for Renters
Looking to lower your rent? Here are a few tips to ensure you can get the best deals.
- Be social and friendly with the landlord– One of the best ways to quickly get a great deal or at least some information about your landlord is to be friendly with them. The more suitable you look as a tenant, the more attention they’ll give you, making it easier to become a tenant. If you can prove that you’ll follow their rules and requests, then you’ll seem like a perfectly reliable tenant.
- Don’t be outrageous with claims and requests -There’s only so much a landlord can do regarding things such as lowering the rent or installing a particular service or electronic device. As long as you don’t make ridiculous claims or ask for outrageous things, you and your landlord will have a great relationship that will help you negotiate cheaper rent in the future.
- Always talk in person – Unless you never see your landlord, speaking with them face-to-face whenever possible is always good. Be it bumping into them on your way to work or when they come down to inspect the property, it’s a lot easier to show emotion when you’re speaking face-to-face which means it’s much easier to mention topics like rent.
Negotiation Tips for Investors
Interested in buying property for investing? Here are some of the negotiation tips that you’ll need.
- Research before negotiating – It’s important to know what you’re talking about before actually talking about it. This tip counts for many things in life. Still, it’s especially important when you’re interested in investing in property because you need to show that you know about the market and that you’re knowledgeable in real estate fields. Identify the type of market that you want to invest in so that it’s easier to negotiate.
- Show positivity and confidence when negotiating – As with buying, selling and renting, you need to show positivity and confidence when negotiating. It’s a good idea to be assertive, but you need to remember that you can’t be overconfident in a field that you don’t know much about.
- Don’t be afraid to ask questions – Negotiating something like investing in real estate property takes time, effort and money. This means you shouldn’t be afraid of asking questions, and you shouldn’t be worried about negotiating virtually anything you can. Whether it’s warranties, furnishing or even appliances, don’t let a single topic go untouched so that you know exactly what you’re getting when you invest in a property.