“In business as in life—you do not get what you deserve, you get what you negotiate” –Chester L. Karrass
It has never been any question whether real estate is a good investment, it has long been considered a given.
However, considering that real estate property might be one of the biggest investments you would probably make in life, it is imperative that you go approach the endeavor with much contemplation and shrewdness. In this regard, selecting a property is in by no means a task you should treat arbitrarily—you need to weight your options insomuch that you can find a property that is not only suitable to your lifestyle but comes at the best price and terms as well. After all, an old adage in real estate is that everything is negotiable. But, just how much is your prospective willing to compromise? Furthermore, do you possess the necessary skills to bring the agreement equally in your and the seller’s favor?
Buying a home does not only mean scoring the best property available, but it also means getting it at the best price possible as well. However, negotiating is a rather tricky skill that is refined over years of experience. Furthermore, it requires a great deal of knowing when to start the negotiations, how to push for more and when you should stop. In conjunction with all those, you would need to possess a shrewd skill in researching the real estate market plus a commitment to being familiar with your prospective property’s neighborhood. Take note: The more properties there are than people who want them, the better your chances in a successful negotiation are. And in this case, homebuyers have more leverage over the home prices which would then create an excellent avenue for negotiation on some homes.
Unfortunately, most homebuyers are unaware of their haggling options. Consequently, opportunities for negotiations are left unexplored when they should have been capitalized. To ensure you get the best deal possible for the prospective homes you are considering—whether that may be a condo for sale in Quezon City or elsewhere—take a gander at your options for negotiating. In any case, here are some of the techniques and tips you should never miss as a homebuyer:
Get an agent
As a buyer, you may have a little breathing room when it comes to the purchase of real estate property. But, that does not automatically mean that you are in the driver’s seat and can dictate the terms of how the sale would go. Unfortunately, with property listings available online, many homebuyers fall into a false sense of security and would think that real estate agents are unnecessary. Sure, you might find a house online but that does not guarantee you can actually get that offer to close.
Put your finances in order
Your offer would be so much more persuasive if it holds more weight. In this regard, you should get yourself pre-approved for a home loan. To highlight its importance, take note that some home sellers would not even consider prospective buyers who do not have a mortgage preapproval making it a paramount requirement not only in negotiations but in buying homes as well.
Do the math before getting hung up on small price differences
More often than not, homebuyers—especially first-time homebuyers—tend to be a little myopic about their prospective real estate property insomuch that they would only look at the price without considering other factors. Sometimes, you need to consider every aspect of the deal before you even consider closing on it or overlooking it. There might be instances wherein small differences would actually mean you get a better property or a more flexible payment rate. In any case, you should do the math and consider the deal from all angles before accepting or rejecting an offer.
Base your offer on the home value and not the list price
Before pitching an offer for a prospective property, take a look at the recent sales in the neighborhood first. From there, you would get the necessary information to arm you in your negotiation endeavor. Keep in mind that homes priced at or below the market value are highly unlikely to budge on their asking price whereas those priced at above market value and have been in the market for a while would be more receptive to lower offers. However, do not immediately jump the gun on the negotiations and accompany your negotiation pitch with a market analysis first.
Be prepared to move fast
Most properties that go in the market tend to disappear as soon as they hit the listings—especially if they are in ideal neighborhoods and are priced reasonably. In a competitive market, keep in mind that your first offer SHOULD BE your best offer. You might never get another chance, so ensure what you offer would not only be persuasive but enticing enough as well.