The real estate market has been on a continuous rise since 2012, and it shows no rate of slowing down. It is currently on track to climb to twice the speed of general inflation and wages. In this hyper-competitive market, investors have a hard time making a quick profit in real estate. Typically, it is the most exceptional mediator who strolls away with ideal bargains. Therefore, make sure to use the below top real estate negotiation tactics.
Top Real Estate Negotiation Tactics: Know Your Highest Bid Beforehand
Before making a deal, pick your highest offer plainly, and stick to it. If the seller counters your predetermined highest offer, be ready to walk away from the deal at all costs. The importance of patience and discipline in real estate cannot be overstated.
Top Real Estate Negotiation Tactics: Make Offers Below the Listed Price
Many beginners fail to employ this real estate tactic because they believe it might offend the seller. Instead, they place high bids with the intent of pleasing the seller, and they end up overpaying. However, starting the bid slightly below the asking price is an effective tactic in real estate negotiation. In the delicate art of negotiation, you have to make it seem like the seller is drawing concessions from you.
Top Real Estate Negotiation Tactics: Create a Story About Yourself
Whenever possible, try to tie a sentimental story around your offer. As an investor, this might be a bit more tricky. However, this extra effort has been proven to be a smart tactic when striking deals. Likewise, if the seller is facing two options for buying, you can sway the decision. On one hand, there might be an impersonal offer from a buyer with no story. On the other hand, there might be Jim, who has recently been rising within the company and become engaged. Sellers, more often than not, will inevitably lean toward the warmer, more individual offer.
Top Real Estate Negotiation Tactics: Meet the Seller in Person
Try to establish a personal and friendly relationship with the seller. When the seller starts to see a face behind the name or offer, the seller will feel warmer about the overall correspondence. However, due to many reasons, it might not be possible to arrange a personal meeting; in this case, do what you can to establish the relationship.
Top Real Estate Negotiation Tactics: Identify Non-Financial Concerns
Some sellers value expediency more than anything. This type of seller will accept a lower offer if the payment goes through quickly. If you can address a non-financial concern, it can significantly increase your chances of success.
There are plenty of deal negotiation tactics that can be extremely effective. In today’s ultra-competitive market, it is essential to make use of all possible resources to land the property.