Negotiating for property is serious business, but your chances of getting the best possible deal increase significantly when you arm yourself with sound knowledge and tactics.Now that you have shortlisted the property and are about to seal the transaction, it is important for you as a buyer to know certain tricks of the trade while negotiating the ‘ask’ price tabled by the seller. To this end, here are some tips and tricks that might come in handy:
Be prepared with funds
The most important thing you can do to be a confident negotiator is to have all your finances in order. Be clear about how much you can afford before entering the negotiation, and speak with your bank or mortgage broker to get pre-approval – you should do this before you even start looking, never mind negotiating.
Do your research into the property market, and the property you like
A confident negotiation comes from knowledge. You need to understand the true value of the property, and what motivates the other parties also involved in the negotiation. Start by building a positive relationship with the real estate agent, and ask them about the seller’s requirements.
Why are they selling? Have they already bought elsewhere? Are they looking for a quick settlement or are they open to discuss a payment plan? Try to get a gauge of what their price expectations are, but be aware underquoting does happen, especially in markets that move quickly.
Make sure this transparency only goes one way though. Don’t let the seller or their agent know your true maximum price – otherwise you might find you get pushed beyond your comfort zone.The best part about buying through a company, is the price is set hence the expected cost is predefined from the on set.
Be prepared to waive certain things when negotiating your property purchase
Negotiation is all about give and take. And there are a few things you may find it easy to give – in order to get the price you want. For example, you can negotiate for a long settlement or how much of a deposit you will pay. All of these things may be up for discussion – use them to your advantage if you can.
Take emotions out of property purchase
When purchasing a property, it’s vital you take your emotional attachment to the land or a house out of the equation. You need to be able to walk away from a sale if the price is beyond your limit. Sometimes sellers have a set figure in mind and just won’t budge, and that’s OK – if it’s not meant to be, there will be another land that will suit you better.
If you can stay reasonably detached during negotiations, and act like the sale doesn’t mean that much to you, you’re also more likely to stay in control. And if you’re buying with your partner, and you disagree on the property decision, stop. This is one of the biggest decisions you will make together, and you both need to own the final result of your negotiation. It can be a stressful time, so seek advice from a trusted friend or buyer’s agent if you need to.
Every property deal is negotiable
There is nothing about real estate transactions that cannot be negotiated. While this does not imply that you would win all bargains, you can expect a reduction of 5-10 percent on the ‘ask’ price if you make an informed attempt and reason it out well with the seller or a stretched payment period..
Aim for a win-win situation
Developing a good rapport with the seller is imperative for a healthy real estate deal. Such a situation can be achieved when both parties feel that they have satisfactorily met their objectives. The prerequisite to ensuring a successful negotiation is understanding each other’s needs and accommodating the goals of both the parties.
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Ricco Homes & Developers Ltd
Nairobi Office: Moran Lounge , Off Kiambu Rd, Nairobi
Nanyuki Office: Cedar Mall , 1st Floor, Laikipia Road
Tel: +254 705 999137 / +254 705 999139
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