Regardless of whether you are a buyer or a seller, succeeding in a negotiation is probably what everyone aims for. Even if you cannot get everything that you want, there is a desire to at least get a fair deal.
So, here are 3 things to consider if you want to negotiate successfully in the realty marketplace:
#1: Market Trends
There are three types of situations when it comes to the market: a buyers’, sellers’ or one where the housing supply and demand are more or less the same. Ideally, the best time to negotiate is when the market favors either sellers or buyers.
A good reason to do this is due to the fact that one can use the market conditions to get a better deal than usual as opposed to time when the market favors neither buying nor selling.
To put the term ‘leverage’ in perspective, let’s say that you’ve recently had to close your business and now need to sell as opposed to having six buyers bidding for your property. In which instance will you have leverage?
It shouldn’t be hard to understand that it is the second instance where the owner can pick the buyer who offers the highest price and best terms.
As the owner of a home, who would you pick: a prequalified buyer or one hasn’t visited a lender yet?
In more cases than not, owner would prefer to transact with a prequalified buyer because it is more likely that they will be able to obtain a loan and close the deal for the home that they’re interested in.
As for buyers who do know where they stand in terms of being able to get a mortgage, there is every chance that their loan approval might not fall through leaving the owner high and dry.