Strategic Buyer’s Guide in Real Estate:
If you have a deposit saved up, have found the most suitable property and received a “decent offer” which is within how much the bank is prepared to lend you, you will know how much you can afford to offer.
However, do not restrict yourself to properties within your budget. Properties have an asking price, but this is usually at least 5 to 10 per cent above what the vendor actually expects to achieve. So if you can afford to buy a property worth 30,00,000 rupees you could still view homes on the market for 32,00,000 – 35,00,000 rupees and then make a “cheeky” offer of 2,00,000 rupees under the asking price.
Make sure ask the sellers agent to make an offer bearing in mind that to show you around knowing your budget, then he or she may believe the vendor will sell for a sum close to what you can afford.
1> Always start low. You can always increase your offer. Keep the negotiation quick, as you want to seal the deal. Ask the agent to ring the client and then you can respond promptly with another offer if necessary. You do not want to lose out because someone else makes a better offer in the meantime.
2> Negotiate from a position of strength. Find out what similar properties are actually selling for and use this as a bargaining tool.
3> Remember if the property has been on the market only a few weeks, the vendor may be less inclined to accept an offer. After a few months, they will probably realize that they need to cut the price if they want a sale.
4> Ask the vendor when it could be let out. If it is to be nearer a school then you may be able to negotiate a good price for a quick sale so they can be there for the start of term. Visit the property at different times on different days, just in case they want to move because of the busy rat run or because the neighbors play loud music until 2am. But remember, this is just hypothetical point for a property buyer & not to used for deciding on potential buying oppurtunities.
5> Sell yourself. You want the vendor to choose you over other potential buyers. So make sure the agent conveys that you have no property to sell, have a mortgager/banker lined up and can move quickly.
6> Do not get so swept up in your desire for a particular dream home that you offer more than you can afford. Be realistic in your offer. You do not want to lose the only home you have wanted to buy for the sake of 2,00,000 rupees for example.
7> While property values and transactions are way down from their peak, the best properties still sell quickly and for close to the asking price. Also bear in mind Stamp Duty & other legal documents you would need to execute.
Negotiating a Real Estate Deal
Art of Negotiating A Real Estate Deal
Structuring a Real Estate Offer
Tools for Negotiating a Real Estate Deal
Personal Communication When Buying Real Estate
Unwanted Emotions While Negotiating A Real Estate Deal
Low Price War in Real Estate
Negotiate With Data in Real Estate
Use Proper Timing To Negotiate Real Estate Deals
Ask Inappropriate Questions While Negotiating A Real Estate Deal
Making a Counter Offer While Negotiating Real Estate Deal
Incentives Can be Offered by Buyers or Sellers
Strategic Buyers Guide in Real Estate
Strategically Sealing A Real Estate Deal