Negotiating on the price of a property can be one of the most difficult aspects of home buying and selling, particularly as both parties will want the best possible deal, and to walk away with the feeling of winning.
Successful negotiation is not about luck. Rather, it is based on the ability to use certain specialised skills and techniques to bring two opposing parties to agreement. While real estate professionals are trained in negotiation, there are some simple tips that both home buyers and sellers can follow to help the process.
1. Think fair pricing
Naturally, the most important aspect of successful negotiation is price. If the property is overpriced to begin with, it can deter home buyers from making an offer. Similarly, making an offer that is far too low could alienate the vendors. Look at sales of similar properties in the surrounding area and base your offer on those.
2. Respect the other side
Understanding the other side can be a powerful tool in negotiating. For example, a buyer who has an urgent moving date could be willing to pay a little bit more of the property. Or a vendor who has committed to another property purchase may also be willing to compromise, either on price or perhaps inclusions.
3. Winning may mean compromise
A win-win negotiation may not mean the buyer and seller get everything they want. More often, it means give-and-take on both sides, so focus on your top priorities and don't let emotions overrule sensible judgment.
4. Meet in the middle
If the buyer and vendor cannot agree on the settlement date, price or inclusions in the sale, it can pay to simply meet in the middle. Meeting halfway is a time-honoured negotiation strategy, usually beneficial to both parties.
5. Ask for advice
If you're totally confused, or simply unsure about the process of negotiation, contact us. As real estate professionals, we are experienced in negotiation, and know what works and what doesn't.
