Buying Real Estate Negotiation Tips for Housing Transaction
To reach an ideal housing deal through negotiation, great skills may be required. In this buying real estate process, buyers and sellers wrestle with each other in order to maximize their respective interests. While looking for the right price, the buyer also wants to get some high-end configuration and facilities included. Sellers usually want to spend the least effort to make the most profit.
The situation in luxury properties may be more difficult, and both buyers and sellers have high expectations. They may be confident in their negotiating skills, so they sometimes go out in person, but this may cause the transaction to become more complicated or deadlocked, because both parties are unwilling to easily make compromises and concessions. In addition, emotions can also influence the success or failure of a transaction and increase its complexity. Therefore, one of the first tasks of property negotiation is to eliminate all emotional factors. Don’t mix personal emotions. The best way to avoid being emotional is to set expectations. It is recommended that the broker sit down and discuss with the buyer in detail and list their expectations for the transaction, such as the right price and smooth housing transaction process. In addition to the price, there are many aspects worthy of further negotiation between the two parties, including matters such as the transfer time and other deadlines, as well as the private property in the house, ranging from household appliances, to luxury seats in home theaters, to complete set of furniture specially designed for restaurants.
A buyer in Pennsylvania once received a year of free coffee. The seller runs a local coffee shop, but he does not want to pay to repair the problems found in the house inspection, so he decided to provide coffee as “compensation.” This situation often depends on the trust and creativity of the agent.
Hire an experienced buyer’s agent
No matter where the property is purchased, the buyer should hire a professional agent. It is very important to have a professional to negotiate the needs on behalf of the buyer. When buyers walk into a house and feel very satisfied, they often show all their cards before they can say hello. But the buyer’s agent knows what questions to ask, and there are many things involved. Although real estate agents can represent buyers and sellers, they also have exclusive buyer agents who are not responsible for any listings. They are absolutely loyal to the buyer and do not interfere with which property they buy, but only if the price is reasonable. For buyers of foreign land or foreign property, it is extremely important to hire a local professional.
Exclusive buyer agents can share valuable information with customers, while other agents may not be able to do this. Because if the real estate agent works for a brokerage company, considering his/her employment relationship with the company, he/she may not be able to disclose some information. This type of information may help buyers gain a favorable position in negotiations. For example, if the seller is going through divorce proceedings or encounters other difficulties, they may need to close the deal as soon as possible. The exclusive buyer’s agent will conduct extensive research on the property, understand the actual situation of the seller through public records and other channels, and finally inform the customer of all the information they have collected.
Prepare in advance to ensure nothing is lost
Investigations on the housing and the community are indispensable. The original purchase price of the owner, the specific details of the renovation, the duration of listing, the number of house viewings and the selling price of similar properties in the area are all worthy of in-depth study. If you can inquire about the actual situation of the seller, it will be of great benefit to the buyer. If the seller urgently needs money, he may accept a lower offer. “On the contrary, if money is not an issue, then the seller may be willing to wait for a more substantial offer.
Buyers not only need to collect information related to the target housing, but also control their own financial situation. The worst situation is that when you finally find the home you want, you are forced to give up due to insufficient funds.
Property negotiation skills vary with market conditions
Understanding market conditions is equally important, and negotiation strategies should be tailored to local conditions. It is recommended that buyers avoid the attachment conditions when quoting as much as possible. This means that it is best for buyers not to make additional requirements such as paying for repairs or attaching furniture, although these may be effective in other markets. But the only thing that cannot be ignored is the house inspection, especially when buyers are interested in historical houses, they must grasp the true condition of the house. The contract will be drawn up based on the results of the house inspection, so the seller can be required to pay for repairs or give a small discount. In addition, the opportunity will also be used to strive for more favorable transactions for the buyer. If the deal is concluded later, it is possible to get a better price. Because sometimes the seller needs more time to buy a new home. If it is an all-cash transaction, buyers may enjoy certain price concessions.
New development projects are suitable for different strategies
Buyers need to adopt different negotiation strategies for new development projects that have not yet started or completed. In South Florida and other places, new high-rise residential buildings priced by developers are very popular with buyers. Negotiations with developers are very difficult, but not impossible.
For new development projects, buyers should be aware of such additional benefits in advance. For example, successfully persuading the developer to change the layout or deliver a “fully furnished unit” instead of a “semi-renovated unit”. The latter means that the owner needs to install floors, curtains, lamps and other accessories by himself. In addition, new buildings usually charge 1.5% of the total housing payment as development costs for handling property rights and ownership transfer procedures. In 99% of the cases, the buyer’s agent can negotiate with the developer to reduce this fee, saving the buyer a lot of money.
International buyers need to consider potential exchange rate changes
For cross-border housing transactions, buyers may consider adding a clause regarding potential exchange rate changes. Buyers want to limit the risk of exchange rate fluctuations. Because sometimes exchange rate changes may bring a lot of extra expenses. For this reason, buyers can lock in the exchange rate during the transaction. But this is accompanied by certain risks, because the exchange rate may also change in a direction that is beneficial to buyers.
Originally published at https://www.tlw.com.