As a real estate buyer, you like to buy a property at the most cost-effective rate. However, you need to negotiate with the seller to decide on the best rate for the property. However, negotiation involves both art and skill. Without learning negotiation properly, you cannot apply the right tactics. To avoid any mistakes, you can choose one of the best realtors in Montreal.
Do not confuse negotiation with bargaining. You are familiar with the bargaining process during your everyday purchases. Negotiating a property deal is a different process. Still, we have listed some tips shared by Behrooz Davani.
Learn about the market dynamics
The seller’s market is different from the buyer’s market. In the case of a buyer’s market, there are several sellers. On the contrary, the seller’s market has a large number of buyers. While targeting the seller’s market, you have a minimal chance of negotiating a real estate deal. But, by focusing on the buyer’s market, you will have a good rate from sellers.
Conduct basic research
Before negotiating deals with sellers, it is essential to learn about the prevailing rates in the locality. Some real estate websites give you comprehensive information about property rates. But, in some cases, those rates are higher than standard market rates. Thus, you can consult a property broker for this purpose.
Several buyers avoid making a real estate deal through a broker to save their brokerage charges. But, involving a professional is a good step, as he knows about the real estate industry better. You will also find a good seller in the local market. A broker also presents you with several choices to help you in locating the desired property.
Identify the reason behind the sale
Why is the property owner selling his property? Increased inflation and a weaker economy are common reasons for a hike in property sales. Several owners cannot pay their EMIs every month, and that is why they think of selling their properties. These real estates are almost 15 to 20% cheaper than the market prices. Although it is not easy to identify the reason for property sales, you can do some research. It makes your negotiation process easier. You have to be cautious with the deals that offer high discounts.
Know about the terms related to payment
You may have pre-sanctioned your loan for buying a property. It helps with the faster processing of payments. Moreover, you can negotiate property deals more efficiently. It is because buyers who process payments without delay get preference from sellers.
Assume 2 parties have chosen a single seller to buy a property. The first party claim to make 90% of the payment within 3 months. On the contrary, another party has promised to pay 80% in 2 weeks. The second party has a chance of winning the deal. Based on these facts, you need to prepare yourself for better negotiation.
No perfection in the property
Try to identify flaws in the chosen property. Sellers always do everything to show the positive sides of real estate. Their major intention is to disclose the reasons for selling the property at a higher rate. However, you can look for limitations that reduce the rate as a buyer. For instance, you can claim that constant traffic causes disturbance while buying an apartment on the ground floor. It can reduce the rate of your property.
These few tricks from Behrooz Davani will enable you to negotiate better with sellers.