Being able to ask for and get what you want is a rare skill that can benefit you in many areas of your life. In real estate, it’s the difference between making a perfect deal or a huge disaster.
However, negotiation is not only an art but also a science. Like any art, it takes practice. And like any science, it needs research. So naturally, most people are not good at negotiating real estate at first but over time some will master this skill to excel in the real estate business. Sometimes many properties don’t really require negotiation: you submit an offer with a deposit and the offer is accepted or rejected.
But if you’re going to represent luxury properties, get into commercial real estate, or advance your career, you need to know how to negotiate effectively. If you’re an experienced first-time buyer, the following negotiation tips can help you land the best deal for the property you’re interested in when negotiating with a real estate agent or developer.
These homebuyer negotiation tactics provide insight into how to get the best deal if you’re considering buying a home.
Top of our list of real estate negotiation tips for buyers is research. Yes, this advice might seem like cliché, but before you approach a real estate agent or developer, do your research. Researching price trends from various real estate market reports is one of the most important real estate negotiation tips for interested real estate buyers. Many homebuyers trust the seller completely and skip this step, but it can give you the right ammunition to negotiate the best
deal with the owner, developer, and even real estate agents.
Analysis of real estate market reports for the area you will be investing in allows you to assess the overall selling price of real estate in that area and measure the return on investment (ROI).Being informed about the trends in the real estate market makes negotiations with a real estate agent much easier because you have all the relevant data at your fingertips.
If you are looking to buy property in Dubai or Abu Dhabi, Bayut’s market reports can help you understand property price trends and negotiate a great deal for you.
GET TO KNOW THE ALTERNATIVE OPTIONS
After analyzing the market, you should have a clear understanding of where and what type of assets you want to invest in. Once this is established, the next step is to determine what is the best alternative for the property you wish to purchase. When considering your best alternatives, a good practice to follow is to compare the price of the property you want with other similar properties in the area.
Be sure to consider factors such as space, location, and the condition of the property when trying to find your best alternative. Researching alternatives will allow you to measure the average price of the property you want, and you can more or less come up with a similar price when negotiating with a real estate agent or developer. .
Let’s say you want to buy a 3 bedroom villa in The Springs with an average selling price of AED 2.4 million. Your best alternative to this is to buy a 3 bedroom villa in Jumeirah Village Circle where the average sale price is AED 2 million if that suits your budget better. These two neighborhoods are located close to each other and have a similar community lifestyle.
KEEP A MARGIN WHEN NEGOTIATING
Next on our list of real estate negotiation tips for buyers is a real estate negotiation tactic that can help buyers negotiate a real estate transaction for the best price. When dealing with a developer or real estate agent, indicate an amount less than your actual budget. Don’t offer your best price at the start of the conversation, so there’s room for a bargain. When negotiating a real estate transaction with a real estate agent, the agent will often offer a higher quote than the price you are offering. Quoting less than your budget can definitely help you get the property within your original budget.
FAMILIARISE YOURSELF WITH THE SELLER’S NEGOTIATION SECRETS
The key to a successful real estate transaction is understanding the tactics sellers use. When negotiating with a real estate agent or developer, remember that when selling a property, they will have their own goals in mind. Whether you are looking to invest in Arabian Ranches or elsewhere, a seller’s primary goal is to make the sale.
A seller makes attractive offers to convince a homebuyer that the property he is showing is the best. In this case, a buyer must be objective and weigh the pros and cons of the offers made during the real estate transaction. Understanding these tactics is one of the most important real estate negotiation tips for buyers, as they can help a buyer make the right decision when buying a property. It’s important for the buyer to ask themselves, “Is this something I really want in my home?” If is something that doesn’t suit your needs, it’s best to look around for alternative options.
BE COMPLETELY HONEST WITH YOUR SELLER
Our final tip for buyers on how to negotiate a real estate contract is to be completely honest with the seller. The seller is not your enemy; If you find that the property you are viewing has any imperfections, it is a good idea to let the seller know. The same applies if you are unsure about a property and need some time to examine other options before making a final purchase decision.
TAKE THE INITIATIVE
You need to be proactive rather than passive when discussing real estate. It is essential that you act competently, have a good attitude, communicate effectively, and listen with empathy. You must avoid appearing negative or acting out of weakness, and above all, listen to and be aware of your partner’s real needs. The more informed you are about their interest in the process, the more they will feel like they are being heard. Ask someone to challenge their points of view or words that try to convince them to change their point of view.
ADD VALUE TO YOUR CLIENTS
Brokers don’t pressure clients to make decisions they don’t want to make. But you should know as much as you can about the property and the area so there are no surprises when the time comes. Educate the client as best you can if you want to be an authority in your profession. You need to make information readily available so buyers and sellers can make informed decisions. Being truthful and transparent is very important to build trust with customers. This is the only way for your customers to find a reliable source for you despite the abundance of easily accessible information on the Internet.
TRY TO FIND COMMON GROUND
In fact, you and your partner both want the same thing: close the deal. And your trading strategy should take advantage of this fact. Take that as a common ground and build your trading strategy around it. While you want them to accept your initial offer, you should expect them to object to it. But everyone around the negotiating table needs to be realistic about the amount offered and the amount expected. It is important to have alternative offers on hand if necessary so that you understand how flexible you can be when negotiating.
The best negotiators are actually problem solvers, recognizing the fact that both parties – the homebuyer and the seller – ultimately want to close the deal with no hassle or little hassle.