What You Should Know about Negotiating on Property and Making a Good Offer.

6 years ago
Categories: Money/Business, Weekly Columns

(Akiit.com) It happens all the time: a first-time buyer finds what they believe to be that perfect property – it’s a dream come true – and because of this, the buyer is hesitant in haggling or negotiating over the price. It’s understandable; making an offer that is too high could result in financial loss, whilst making an offer that is too low may leave the seller with no choice but to sell it to someone else. So how do you start the bidding process?

Luckily, there are some great professionals who are willing to give their advice on how to start this difficult procedure. It’s actually not that hard if you handle it with the respect it deserves. Here’s what you should know about negotiating on property and making a good offer.

Before you look around

Decide on your budget – or at least a range (the minimum and maximum price) – and stick with it. There’s no use buying that perfect home if you’re going to have financial trouble with it. Also, before looking at property:

Communicate to agents a price range about 5-10% lower than your actual figure; agents tend to show you property slightly more expensive than your professed budget anyway.

Study the property market and the differences in prices per square footage in the area. It will give you a better idea of fair value.

Consider your offer and communicate it

View as many properties as you can. Don’t rest until you find the right one – and make sure you visit that property several times (as well as the neighbourhood), as any expert from www.beresfordsgroup.co.uk will tell you. Consider the following:

Properties that need to sell quickly tend to be negotiable in price. Ask about the reasons for selling.

Make a list of negative issues you find with the property. This will help in negotiations.

Think about the price you are really willing to pay, and present an offer lower than that. The agent has the obligation to relay your offer to the owner, no matter how ridiculous the offer may be. It’s a good idea to follow this up in writing. If you hear the agent or owner saying (or showing signs of) willingness to lower the selling price, negotiations can begin.

Remember that negotiations and discussions about price are often tense and that’s part of it – especially when it comes to property, as the seller may have emotional value attached to the property, whilst the buyer has certain expectations. Being prepared and knowing how to defend your position (making your case as to why you feel your offer is reasonable) will give you the best chances of success. Think logically, and try to leave your emotions at home during this tricky process. Good luck!

Staff Writer; Larry Jones