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Master the Art of Property Negotiation in 4 Easy Steps

After you find your dream home you make an offer. Though this seems easy enough, there is an art to making an offer on a home. The process requires skilled negotiation in order to obtain the best price for your dream home. A good negotiator knows the price a home is listed for is rarely the price the home will sell for and will already have a price in mind that they will work up towards.

This sale price is recommended by the estate agent based on similar homes in the area. In a negotiation, an estate agent will try to sell the home for the highest price possible because they work on commission and are an advocate of the home seller. The estate agent’s commission is based upon a percentage of the sale price. Buyers should keep in mind that estate agents have an incentive to sell the home for a higher price so that they take home a larger commission fee.

It is vital as buyer if you want to achieve the best price that you know the basic ground rules to negotiate a good deal.

1. Research the Market

Research the market to determine the local and national trends for home prices. The market fluctuates based upon the world-wide economic trends and the local economic climate. Buyers need to be familiar with the market conditions. If the market is slow or what is termed a ‘buyers market’ then this is the best time to grab a bargain so you shouldn’t be afraid to put in a low offer. It is always advisable to do some research on homes similar to the one in question before making an offer. If you can find out the sold prices of similar properties in the area by looking them up on the land Registry this will be useful reference point.

Master the Art of Property Negotiation in 4 Easy Steps

Property Negotiation in 4 Easy Steps

2. Begin Negotiation Discussions

Never make an offer before determining what items will be included in the sale. Initiate a conversation with the seller to explicitly detail everything that will be included with the property sale. If what is included does not meet your expectations then this can be a great negotiation point to leverage from. During the conversation also try to determine the seller’s motivation for selling the property. If the seller is in distress, then he or she may be willing to part with the property for a lower price.

3. Bargaining

During the bargaining phase, provide explanations for how you arrived at the price that was chosen. Evidence and persuasive comments will help the seller to recognise why you believe the property is not worth the listed price. Buyers are advised to hire a surveyor to determine if the property is in the condition stated by the seller. If not, the evidence will help buyers bargain for a lower price. Always bear in mind that the estate agent will often quote a higher price than seller is actually willing to accept research, bargain and close the deal like a professional. Experts recommend practicing the steps of negotiation so that they can maximise their commissions on a property.

4. Closing the Deal

Once a sale price has been agreed ensure that you have a solicitor ready to undertake conveyancing. This will demonstrate your intention to the estate agent and give the seller comfort when you request that the property be placed under and all viewings to be stopped.

Follow these steps and do your research to make informed decisions you shouldn’t go far wrong when you find that perfect home that you’ve been searching for.

Bio Andrew Potter of My Online Estate Agent wrote this guest post.
My Online Estate Agent is a UK online estate agent and provides all the tools and guides you need to successfully sell or let your property.

posted by Zane in Buying,Guide,Property and have No Comments

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