Tips for mastering negotiation skills when buying and selling real estate
1. Choose the right real estate broker
With the proliferation of online real estate buying and selling websites, it is no longer the realtor’s role to find the right property for you. Instead, it is the realtor’s job to work with you to come up with “the best possible price for your home.” Your real estate broker should act as your negotiating advisor. It is important, then, when meeting real estate agents to ask them about their experience in negotiating prices before moving forward.
You should ask any real estate broker about his negotiation strategy and its procedures, approach, or tactics, and he should be asked if he has a methodology that explains how he conducts the negotiation. If he does not have a strategy and methodology in negotiation, this does not necessarily mean that he is a bad real estate broker, but his negotiation skills are not sufficient.
2. Get enough information
The more you know, the greater your chances of achieving success through the negotiation process. Instead of walking blindly during negotiation, you must obtain all available information about the property and the area in which the property is located. The real estate broker must tell you the advantages and disadvantages of the property and what distinguishes the property from the real estate. Others are in the same area and in the same price category, and the real estate broker must inform you of the level of all services in the area, for example, he tells you about the schools in the area and the level of teaching in them, and he tells you about the hospitals in the area and the level of health services provided therein, and he tells you about the transportation in the area and its availability, and it tells you about the level of safety in the area. The region and the extent of crime and theft.
3. Have time on your side
Being patient is an attempt used by many negotiators. If you are not in a hurry and time is on your side, patience can be a challenge for the other party if it is in a hurry. The other party will think that you are not under the necessary pressure to complete the deal, so the only option that will be in front of him is to make concessions to push you to say yes.
But do not wait too long if you are in a market with many buyers, because there is a possibility that another buyer will come and buy the property. Make the waiting issue determined by the market situation and the issue of supply and demand.
4. Explain to the other party how you will meet their needs
Successful negotiators always see the situation from the other side’s perspective. Everyone has different points of view, especially during the negotiation process, so you must see things from the angle of the other party.
Ask yourself if you were in the place of the other party, what do I want to achieve? And what are my goals and motives? Follow this method during the negotiation process and you will find good results because you will know what the person you are negotiating with wants.
There are some people who buy houses that need repairs, and buy them at less than their market value, and take advantage that the seller does not have the money to repair his house, and they apply the 70% rate.
The 70% rule states that the investor must not pay more than 70% of the value of the asset after repair, less the required repairs.
Here’s an example: If the home after repair has a value of $150,000 and the home needs $25,000 in repairs, the 70% rule means that the investor should pay no more than $80,000 for the home.
$150,000 x 70% = $105,000
$105,000 – $25,000 (the value of repairs) = $80,000.
You do this in order for the other party to understand the size of the other costs that you will incur, but if the house that you intend to buy has decor and expensive things that are overpriced, and therefore you will bear the cost of these things, you must not buy this house because the issue here exceeded the issue of tastes And it became an issue of unjustified and exaggerated costs under the name of decoration, leading to a rise in the price of the house.
Things that show that the landlord is willing to negotiate
a. The seller offers additional items with the house
Such as offering you furniture and electrical appliances at a low price.
B. When the seller asks for a low price
When the real estate owner asks for a low price in the house compared to the average real estate prices in the market, in this case you should know that the real estate owner wants to sell the property quickly and you can pressure him to reduce the price again
When the real estate owner asks for a high, exaggerated, and unreal price for the property compared to the average real estate prices in the region, in this case you should know that the real estate owner wants to sell the property quickly and has requested a high price in order to negotiate and reduce the price to the average prevailing price in the region.
5. The property has been on the market for a long time
If the property has been offered for sale for a long time and its owner fails to sell it, for your information, you can know the duration of the property display in the market from the real estate guards and from the date the property was placed for sale on the Internet.
6. When the property owner requests that the price of the property be paid in cash
If the owner of the property requests that the amount of the price of the property be paid in cash and not in installments, and it is known that most of those who buy real estate want to buy in installments, and if you are going to pay the price of the property in cash, you must get a reduction in the price
7. Buy during a recession
If you are buying the property during a recession in the real estate market and there are few buyers in the market.
