Once you finalize a property after scanning through the available options, it’s time to put on your negotiating hat and sit across the table. Negotiating is a much sought after skill in any field, as it leads to monetary as well as non-monetary gains. Here is a list of 5 tips that might help you in negotiating for your new property.
1. Understand the market—transform the information into knowledge
Know what factors drive the real estate market. For instance, in a project, if there is a lot of unsold inventory, the builder will be ready to negotiate on the prices. It is typically a buyer’s market, and things tend to work favorably for the buyers. Conversely, if there aren’t many options left, the seller may not be ready to even negotiate as there will be many prospective buyers for the same residential unit.
Further, the prevalent price levels, availability, and ease of getting a home loan will also have a bearing on the scope of negotiation. A home loan EMI calculator will assist in understanding how much home loan you would require, along with the EMI it would entail. You will zero in on the price, which will be at the intersection of these two: the offer and your budget.
2. Be fund-ready and express Interest
Being clear in expressing your interest gives a certain authenticity to the negotiation. Approach your financier for a home loan in-principle sanction letter, and it will lend credence to your discussion. Sellers prefer to deal with buyers who know what they want, are clear about their requirements, and can arrange for funds hassle-free. The deal will be faster to close if the time lag to bring in funds is less.
3. Befriend frictions and aim to keep emotions at bay
This is the master of all tips in negotiation. The power to say “no” cannot be emphasized more. It becomes of paramount importance when you are in a negotiation. It is a common notion that friction in a deal should be avoided, whereas the reality is—friction, if handled well, can lead to tremendous gains. The ability to be assertive about your requirements and being able to detach emotionally is critical to negotiation. Saying “no” at the right time and not rushing into the deal as if it’s your last option will help you in negotiating better.
4. Focus on win-win
A win-win situation is the best strategy for negotiation. It is imperative to foster a good rapport with the seller as no deal is the last deal. You may like a property immensely, but rushing into the deal without familiarizing yourself with the seller may lead to less than exciting gains for you. Understand the person you are dealing with, and see how you can add value to him from this deal or to his business. When both of you understand and respect each other’s requirements and focus on meeting the objectives, it’s easy to achieve a win-win.
5. Seek professional help
Though you can set out to negotiate on your own, seeking help from real estate professionals is good. Most buyers avoid this to save on brokerage fees. However, there is always a pay-off between the cost incurred and benefit derived. The real estate professionals, with their in-depth knowledge and experience, may facilitate and empower you to close a better deal.
Understanding these negotiating tips will equip you to close that lucrative property deal. Once you have achieved that, you can negotiate to get the best home loan interest rates too. A home loan ideally is a long-term loan. Hence, negotiating with the rate will assist you in keeping your long-term liability at the desired level.