There are several approaches to negotiating a successful real estate deal, but all involve a few key strategies. Recognizing the strengths of your position will enable you to execute the most advantageous deal possible.
Foremost, you must completely comprehend that you are negotiating from a position of strength. Many property owners are in a financially distressed state, that is, they are desperate to sell. Recognise that the seller has to dispose of this particular property while you can buy any property on the market. Let the prospective seller understand that you are willing to walk from this deal and you will immediately have the upper hand.
Make the seller understand that any deficiencies in the property are his problem and the remedies should be reflected in the price. Many owners want to dispose of a property because of undisclosed headaches. Correctly appraising and inspecting a property should be paramount in the due diligence associated with a property.
Feign disinterest. This tactic is even better if you are truly disinterested. Never, and I mean never, let the buyer or your broker know that you are hot for a property. In your enthusiasm, your inclination may be to confide in your broker. Do not. It is a little known fact that the broker is actually working for the seller. He is obligated to relay any information that you impart to him to the seller.
Drive a hard bargain. You have all the advantages. The current real estate market has gone begging for buyers, so you can negotiate something truly advantageous. Once you have consummated the deal, you will be examining the landscape from a completely different perspective. You need to maximize your opportunity now.
Don’t be afraid to insult the seller. In the current real estate market, it is unbelievable that many buyers will offer more than they normally would because they think the seller will be offended. It’s a buyer’s market and this is a business transaction. Go for the throat.
In short, to optimize a real estate transaction, you must deal in cold, hard facts. Emotion has no place at the table. Find the deal, appraise the property and run the numbers. If these are acceptable, make an offer well below your strike price and be satisfied if it is accepted.