Negotiating the price of real estate can be very intimidating. It isn’t something that comes natural to most people. We don’t negotiate prices in day-to-day transactions. However, when it comes to property, things are different. Prices have to be negotiated. The good news is it is a learnable skill. You just need to learn a few things so you can become the best negotiator possible.
To be good at it, you need to understand that the basic goal here isn’t to win. If you look at it as a win-lose task, you may never feel good with any outcome. The idea is to come up with a good compromise that works for everyone. It is also important to understand that sometimes you won’t reach a deal and that is fine. Don’t look at it as a failure. Learn from it and move on.
Now to increase your chances of success, you want to start by finding someone who is motivated to sell. If the seller really just wants to unload this piece of real estate, they will be much more open to negotiating a price.
Make sure you do some research before you get started. Try to discover why the seller is selling. Find out the worth of the property by looking at recent sales and comparable property. Do a background check to see if the property has liens or other issues that could negate a lower price. Backing up your offer with some solid reasons will help you feel more comfortable.
You also want to build a good relationship with the seller. If you go in there and just start rattling off numbers, the seller won’t feel very connected to you. Make them feel comfortable. Get to know them a little. Joke with them, even. Building a good rapport helps you seem more sincere.
As you get to know the seller, don’t forget to learn about the property. Ask questions so you can get to know more about what you are about to invest in. Ask direct questions and keep them open-ended so the seller has to give you lengthy answers and can’t just answer yes or no. This will naturally lead you into talking money.
Ask them straight out what they want for the property. Sometimes they won’t have an answer, so since you did some research, you can now bring out the figure you came up with and explain why you think it is fair. Do keep your offer on the low side so it gives you room to negotiate.
Negotiating a real estate purchase can become second nature once you get the process down. It really isn’t that hard. The seller wants to sell and you want to buy, so you both have a goal in common of getting the property sold. Just keep that in mind and you should do fine.