The negotiating table is a common step in the property purchase process and can be intimidating for those new to the art of negotiating. But, calm down. There is no reason to panic. Its sole objective is to find the best scenario common to all parties, and that includes you!
At that time, information is your best ally to stay calm and make good decisions.
We have separated some tips for you to feel more relaxed and confident when closing the deal of your life:
The seller does this every day, and this is likely to be his first time. So don’t underestimate this step. Before leaving home, know what is the average amount and what is the maximum amount you are willing to pay. Study. Collect as much information as possible, because at the negotiating table, information is power!
Information is power!
Arriving well informed, without a doubt, is already halfway to closing a good deal. Knowledge keeps you from falling into traps and possible strategies across the table. It also provides you with key trading tools.
- Everything about the surroundings. Traffic, access, noise, security, convenience, etc… These data are beyond the seller’s control and cannot be denied.
- How is the sale of the development going? The smaller the number of sales and the greater the company’s need to close the sale, the greater its negotiating power.
- Project details. It is not uncommon for the seller not to know the project in depth and end up making unfounded promises at the time of negotiation (ex.: delivery time, number of parking spaces, etc…). Know exactly what you are buying and avoid future hassles.
- Competing ventures. Be aware of the developments for sale in the same region with the same profile (standard, size, number of bedrooms), know the average value of the m² and use it to your advantage.
Offer good payment terms
The final value of the property can vary (a lot) according to the payment method. This is one of the reasons why price is not always disclosed in real estate ads .
Without a doubt, your biggest financial asset in trading is the down payment. The higher the present value you are able to pay, the lower the total value of the property can reach.
Proof of good payment terms, an approved letter of credit from the bank or consortium can also bring you benefits.
It’s not time to show emotions
Never lose your mind or get angry. The heavy atmosphere does not favor negotiation at all. On the other hand, if you are overly excited about the purchase, it sends the message that the seller doesn’t need to work hard to close the deal, causing you to miss out on good deals.
Keeping a cool head and your feet on the ground can save you from a messy business.
- Go accompanied. If you have a professional in your field, all the better. In addition to contributing knowledge, your confidence and experience will be very useful to you when negotiating. The presence of a family member or friend can also help you feel less vulnerable and more confident.
- Think a little better. Even if you can reach a good deal, if you can, ask the seller to reserve the unit for a short period under the same conditions and take a few days to think. In addition to preventing you from closing a deal on impulse, this attitude can help you get a better offer.
Keep the good relationship
Don’t see this step as a dispute or a war. Negotiation is nothing more than an agreement. Always remember that:
“The (good) relationship is still the only way to succeed in any negotiation.”