Property Investment Guide – The key to negotiating . . .
I recently had a client who is about to put their home up for sale and upgrade to a bigger and better property. They wanted to get some advice that would help them negotiate a deal on their new property.
Here's my notes from our conversation:-
Rule 1 – First one to mention the property price loses
Hold out for as long as possible and don't ask the price until they have given it, by all means ask questions like what is their minimum offer? Make statements like “It will need to be lower than that.”
Rule 2 – Destroy all expectations of profit in the sellers mind
Be prepared before you meet the agent. Research online for similar properties in that area that are cheaper, better, or both. When you chat with the agent if you know the area and the market you will command a lot more respect.
Rule 3 – Build up the competition
Knowing the competitor is only one part you must build up the competition as much as possible so as to make the said property look overpriced for what it is.
Rule 4 – The agent is never your friend
The agent represents the buyer, they are only your friend for the sake of the commission so under no circumstance should you reveal anything to them. They are delving into you to find out things they can use. Don't get lured into a false sense of importance. Be on guard.
Rule 5 – False offer
Act as if you have already put an offer in somewhere else and that this would need to be a special deal for you to take it. Many agents create stories of false offers so why
shouldn't you use it on them?
Rule 6 – First the ‘price' then the ‘terms'
This is a great one, you make an offer and once it's accepted them you add in the favourable terms. The seller will emotionally feel they have a deal and then is the time to add your other requests. So don't be afraid to keep negotiating.
Rule 7 – Subject to clauses
These are clauses or terms like ‘I will put this offer in as long as the furniture stays the sale is completed by a certain time line', in fact if could be any advantageous clause that you want added.
I have no doubt there are other things to consider but this was just the 20-minute conversation we had. So good luck Jim and Mary in your house hunting efforts.
If you want advice on what to be aware of when buying or selling then give the team a call on +44 (0)207 923 6100.
Live with passion,