Real estate is one of the sectors in which negotiation is most common. Because of the high prices, it’s almost impossible for the buyer and seller to immediately agree on the final price: there is always some negotiation, however small, that includes an offer and a counter-offer, often in a back-and-forth process that can take a long time to reach the final price. However, there is one rule that applies to both sides: never pull too hard on the rope, or it may break. So how do you properly negotiate the purchase of a new home?
Buying a new home: make a reasonable offer
Those who want to buy a new house or apartment already know that the price offered will not be final. It is therefore preferable to make a well-informed counter-offer. During the visit, it is important to check all aspects of the house and to ask questions to the real estate agent or the owner of the new house in order to have all the elements in hand for a coherent evaluation. Only then can negotiations begin. In addition, if the seller sees the buyer’s interest and realizes that his or her questions are relevant to finding the elements of a reasoned evaluation of the property, it is easier to obtain a final price close to what you are willing to pay.
Buying a new home: don’t show too much interest
One mistake you should never make when looking for a home is to show too much interest in the property you see, even if you would do anything to get it. Sellers perceive these things and in this case the negotiation inevitably takes a different path, with the seller getting all the power in the management for himself. It is right to show interest, but it is wrong to make it seem that you are willing to do anything to get that property. Also, it is always better to have a plan B during the negotiation and it is good that the seller knows this, even if you do not say it openly. This way you have more peace of mind in managing the purchase and, in case something goes wrong, you are sure to have your back covered with another interesting proposal on which to move interest.
Do not visit the property more than twice
In order not to show too much interest in the property, you should not visit it more than twice. In order to have a complete view of the apartment and discover possible problems, it is not necessary to ask for more than two appointments, if they are used correctly. In particular, before the meeting with the seller, you should write down some general questions about the new property to begin to get a complete picture of the situation. During the visit, you should point out any issues and quirks you discover and ask any questions that may be relevant to the assessment without hesitation. The second visit is useful for a second perspective but is not always necessary. By the third meeting, the seller perceives considerable interest in the property and begins to lead the negotiation in his favor, thus taking away the bargaining power of the buyer, who is put on the weak side, under pressure and therefore runs the risk of not reaching a favorable conclusion.
It has been shown that the best concluded negotiations are those that last the least time. Therefore, the buyer should give the seller a maximum amount of time to accept the counter-offer, after which the purchase is cancelled. Generally, 3 to 5 days are given to best evaluate the purchase proposal, just to apply pressure but not excessively. A shorter time frame could create a feeling of anxiety in the seller, which is counterproductive for the negotiation because, in most cases, this feeling leads to denial. Too long a time frame, on the other hand, gives the seller a very long time to make his evaluations and he may not find it worthwhile to sell on the terms of the counter-offer.
Showing economic security
The psychological factor in a negotiation for the purchase of a property is fundamental and is often the key element for its success. As the deal approaches and only the details are missing, the buyer must make the seller understand that his counter-offer option is the best one because he is able to conclude the negotiation immediately, both because he has the full capital needed and because he may have already applied to the bank for mortgage approval. Once a seller receives this information and is therefore assured of immediate payment of the purchase price, the transaction is almost complete.