A negotiation is essentially a discussion to produce an agreement and negotiation on a real estate purchase is common throughout the world that increases the value of a buyer’s hard earned money. But, the crux is that not everywhere and every time you can negotiate for a property purchase. In other words, you need to know how to go about negotiating the deal in your favour when purchasing a real estate property.
Tips to negotiate for a Real estate purchase
1. Know the market
When you are out in the market looking for a suitable property, before you make any counter offer to a seller, you must know the market first. Having said that, we mean you have to know the potential of the market so that you can be better prepared for negotiation. For instance, any property within the municipal limits of the City of Bangaluru will cost much higher than those that are just outside the city limit. In other words, when you go for a property purchase on the outskirt of a city, chances are high that you can have a good bargain for a purchase.
2. Prevailing prices
You must know the prevailing real estate prices in your niche or target market. After all, you have to have a budget for the same. At the same time, unless you know the prevailing prices in the market, you will by default be cheated by the developer or the agent. However, there are two types of prices in any market – one that is decided by the government and the other is the one that the developer decides. Govt. pricing is meant for the purpose of fixing the lower limit of stamp duty for the property registration.
3. Classification of the area
Municipal corporations have earmarked areas with categories such as A, B, and C. Based on the category of the area and the total built-up area, property tax changes. Having said this, we mean any property under the area of category A will cost more compared to the other categories. In short, before you plan to buy properties, know the category of the area where the property is located. If a building is in an A category area, you will not get a good bargain on the quoted price.
4. Augment finance
The objective of negotiation is achieved best when you have ready finance. Having said that, we mean you can negotiate better if you can buy a property on an instant basis. For instance, a seller may have been looking out for a buyer for quite sometime and he/she needs to settle the deal fast. You can cash the opportunity and thus, get a good bargain.
5. Ready to purchase
Avoid meeting the prospective sellers in your niche market when you are not serious about a purchase. Do it only when you are serious. The seller will then treat you with respect and priority and, in turn, you will get a good bargain. For instance, during the sluggish market condition, a buyer always has an upper hand on the seller provided the seller feels that you are a genuine buyer.
6. Market condition
If your objective is to buy a property within your shoestring budget, avoid looking for properties during the bullish market conditions since developers or sellers will be commanding price during that period. This happens when the supply is less in the market and demand is potentially high.
7. Learn to compromise
Don’t expect that your every wish on an ideal home will come true through the purchase of a real estate. You have to learn about compromising some of those that are not so important and you don’t miss on the right bargain.
8. Expect to be a winner
Believe in yourself that you can crack a deal that best suits your purpose. In other words, expect to win in a bargain without keeping a bet on the same.
9. Purchase timing
If you are looking for a property purchase and a good bargain, the timing of purchase does play an important role. For instance, people usually make investments be it in property or others during the festive seasons of a year.
10. Special offers
Avail the special offers on the properties that, in other words, translates to good bargains on a purchase.
Keep your eyes open and listen to those who already have an experience of buying the properties. Your family, friends, and colleagues can help you here in a big way.