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Once you find your dream property it’s fun to start imagining settling in. Yet, there is still the negotiation process to finalize the deal. While this can seem a little intimidating, there are a few different strategies you can try. Follow these 10 real estate negotiation tips to get the best price.
1. Let the Other Person Talk First
Having the seller name their price first can get you a better deal and relieve some anxiety. It allows you to see where the negation is headed. Often the final offer is somewhere between the initial ones. Also, you can feel more confident about your counter proposal if you know where the seller’s head is at. If you have to say something first consider giving a price range.
2. Add Inclusions
Near the end of the negation, the process considers inclusions. These are removable items that a seller is willing to leave behind. These may include items, such as appliances or light fixtures. During the negotiation, they can be used to raise the price for the seller.
For example, if a unit washer and dryer are left behind, then the seller can ask the buyer to pay for repair costs. On the other hand, buyers can lower their offers if certain amenities aren’t included.
3. Make a Personal Connection
Creating a personal connection with the seller can make negotiations go smoother. Writing a personal letter can help the seller learn more about you. Plus by highlighting how much you love the home, the seller will feel more comfortable giving it to you.
It’s also a good idea to find something you have in common with the seller and build off that. For example, do you work in the same field or went to the same college?
4. Speak in an Affirming Tone
Using affirmative language is one real estate negotiation tactic that builds a stronger foundation. This type of language makes someone feel heard and valued. They can also help to make it seem like your ideas came from the other person. You could start by stating that the other person came up with a good idea, like splitting costs. Then build on that by asking to split appliance expenses. Using affirming language can also give real estate agents a better reputation.
5. Pay Attention to Your Body Language and Tone
Your voice, facial expression, and demeanor can give off certain cues. In fact, 55% of communication is non-verbal. For example, crossing your arms can make you appear disinterested or defensive. Also, pacing or playing with your hair can give off nervous energy. So, you want to appear confident and friendly with open body language and eye contact. Plus, smiling can put the other person at ease and produce a warmer tone.
6. Research the Market Value
This is one of the real estate negotiation tips that can help you better prepare. Look up the market value of your property before making an offer. You can compare comparable homes in your area or work with a local real estate agent. There are multiple online tools to estimate your home’s value or you can get an appraisal. When making an initial offer, it should be slightly above the market, but below the asking price.
7. Control Your Emotions
During a negotiation things can get intense, so you want to stay cool. Even if the other person loses their temper it’s important to keep your emotions in check. Try not to let their feelings influence yours and cause you to lose the deal. Therefore, keep a positive attitude throughout.
To help control your emotions don’t replay them in your mind and create a bigger problem. Also, if you need to take a minute to step away and collect your thoughts that’s okay.
8. Have Important Discussions in Person or Over the Phone
Emailing or texting can leave room for misinterpretation. It’s easier to read someone’s body language and emotions in a person. Even over the phone, you can hear the tone in their voice. When meeting with the seller, ensure you have done your research. Know all the house details, the local market, and what you value. Plus, these meetings allow the deal to happen quicker. Since it can take days to get back an email response.
9. Stay Positive
Keep in mind a home has sentimental value for the seller. Therefore, while you may mention a negative feature to lower the asking price it could deter them. For example, maybe a worn-down fence was built by a parent and child. Instead, emphasize the thing you like about the property. This can help connect with the seller and make your offer stand out.
10. Have a Backup Plan
No matter how much you prepare, things can still go wrong, so have a backup plan in place. For example, if the price becomes too high consider alternative housing options. Having a backup plan can also help you stay calm and keep your emotions in check. That way you aren’t caught off guard and scrambling to make your next move.
Best Real Estate Negotiation Strategies
Finding the perfect home is only half the battle. The other part is negotiating a fair price. There are many tactics you can use to have the upper hand. So, follow these real estate negotiation tips to move into your dream home.