It’s estimated that there are around 5.39 million homes that need to be sold in the United States right now. It’s the ideal market for both buyers and sellers, but despite that, some people aren’t having luck in either case.
It doesn’t matter if you’re trying to get a great deal on a luxury house or sell a modest family home, negotiating in real estate is a crucial skill.
Do you want to know how to negotiate with the best of them? Read more to find out.
The Key To Negotiating In Real Estate
Too many people make the mistake of assuming that the asking price is final. They’re missing out on huge savings (or profits) because they don’t know how to properly negotiate.
If you want to walk out of your next real estate meeting with a price you’re happy with, make sure you follow these negotiation tactics.
Gauge The Situation
The number one rule to successfully negotiating in real estate is to properly gauge the situation. In order to do this, you’ll need to do a little research.
Learn how long the property has been on the market, and if there have been any price drops or increases. This information can tell you everything you need.
If there have been significant price drops, the seller is eager to unload their house. You may be able to negotiate a lower price so they can finally make a sale.
If you notice price increases, the seller has either been doing home improvements or may be aiming a bit too high in terms of price.
Don’t Let Yourself Be Manipulated
It isn’t uncommon for people to feel like they’re being pushed into making a deal because of jabs from people.
“I can’t believe you’re asking for ________ when the seller has done so many improvements!”
“You really think that ______ is a fair price to ask for in this market?”
One of the important parts of successfully negotiating in real estate is to not let yourself be swayed by negative comments.
When people make statements like that, they’re intentionally trying to make you second guess yourself. They want you to doubt your own opinions so you’ll agree with them.
Don’t be afraid to stand your ground, or walk away if you feel like you’re being manipulated.
Know Your Limits
If you don’t know exactly what you’re willing to pay or ask for, you shouldn’t be negotiating in real estate.
If you don’t know what you want, it’s going to be easy to be swayed by other people. This is why it’s important to go into every meeting with a set of absolutes.
Knowing your budget is key. Take time to determine what’s the lowest you’re willing to ask for, or the highest amount you’re willing to pay.
It’s also important to know what you’re willing to budge on. There’s nothing worse than missing out on a great deal because you were too stubborn to let one thing go.
If you go into the meeting with those limits in your mind, you’ll be able to get the price you want.
Now that you know how to negotiate, you’re probably interested in learning more about buying and selling real estate.
If you’re curious about how to set up a home for selling, check out our post on how to properly stage a home.