In an ideal situation, you place your offer, the seller accepts it and begins the process of buying. But is not always this easy, sometimes you have to negotiate and it can be difficult to understand how, when or what to make the negotiation offer. Here we explain some tips that can help you make your negotiation so attractive that is almost impossible for the seller to reject.
Real State Market
The first thing to identify is the market you are in. If you do not know what they are, you can read this article in which we explain what they are:
Now, its important to understand that the type of market determines the rules in which you have to make your negotiation offer to be successful.
How to negotiate in a buyers market?
In this type of market there are more proprieties for sale than interested buyers. That is why in this scenario you have the possibility of negotiating a lower price, closing costs, delivery date, guarantees and other things that you might be interest in. Some Sellers may consider offers up to 10% less than the original price, but it is important that you not make the lowest offer from the beginning, it is best to do it gradually to avoid that the seller is offended and does not consider your offer at all.
How to negotiate in a sellers market?
In this market there are more interested buyers than properties for sale. Therefore, in this case your negotiating capacity may be a little more limited. It is best if the offer you make is the closest to the original price of the property however you can negotiate factors related to the home inspection or small repairs that the house need, but keep in mind that there may be other buyers who do not ask about this so its best to negotiate only really essential adjustments and make sure your price offer is hard to refuse.
How to negotiate in a balanced market?
In this case the number of homes for sale is balanced to the number of buyers. The problem withs this market is that there is no urgency to either sell or buy so it can be difficult to finish the negotiation. However, you as a buyer can start with a lower price offer and some other little things like warranty, closing dates, repairs, closing costs… but you should keep in mind that may be other buyers who are not interest in negotiate so that puts you in a less favorable position.
Understanding the type of market in which we find ourselves is essential for making good investment decisions. The type of market changes depending on many factors; among the most important are the geography and the local economic situation where the property is locatedFabricio Riggioni – Nativu Guanacaste
When you negotiate, avoid getting carried away by emotion. Don’t forget that while your dream home is at strike, the best thing to do is being prepared for business. Before making an offer try to know the market you are in, make a list for reasonable points that you want to negotiate and in case you do not know, do not hesitate to consult a real state profesional who will help you make your offer the best on the market.