Six strategies to Negotiate like a professional in Real Estate.
Finding a dream home is getting tough day by day and it needs a lot of analysis and decision-making. It is certainly not an easy job to get the right thing what exactly you had dreamt for; not everyone is that lucky. Also, the tricky deals those realtors make out there with clients, making their commission and neglecting client’s satisfaction.
This strenuous challenge has its own technicalities, for those who do not know much about the real estate buying and selling. Remember one thing, realtors are highly trained professionals and too good at dealing with clients. There is a chance misguidance because of some false information provided by the realtor.
In this article, we will talk about the strategies you can apply as to make a good negotiation with the realtor like a professional but first, let us take an overview on how real estate brokers trick clients.
Tricks that Real estate agents use
Some real estate agents get tricky when marketing property, which is why you should bear in mind of unethical practices like under quoting. It occurs where a real estate agent markets a property for less than the actual sale price to attract greater interest from potential buyers.
- Unsupported rental estimates
Another trick is that you ask a real estate agent as a property investor “How much do you think this property will achieve in rental?” and often they say like oh, $500 a week. Maybe it is the first time that they even thought about that question because they may be thinking that it is going to be an owner-occupier that will buy it and you might be relying on $500 a week, but the reality is market is only paying for $430.
- Vague pricing
A kind of lead on from that is the second sneaky trick that they do is when you ask “what the price is?” and they remain very vague regarding the price. They want to create maximum competition so don’t be surprised if you ask a real estate agent direct question and you don’t get a direct answer because it’s their job to try and stay vague to create more competition.
- Pre-auction offers
If the real estate agent thinks that, the buyers are liars, and most buyers keep their card close to their chest and do not tell them how much they are going to pay. What the agent incentivized to do is get you to make a pre-auction offer so they would at least know where your interests are at, but they may have no attention and whatsoever selling before the auction.
These were some common unfair practices by the realtors, now coming to the main topic; here are six strategies to negotiate like a professional in real estate.
- Don’t tell them you are in rush
The thing not to tell your real estate agent is that you are in a rush so maybe you just sold your property and you have a certain amount of time when you need to get into another property, otherwise you can be in dire stairs or in awkward situation.
They can hold out offers against you so when it comes time you got such a short time frame to buy and to settle that. You are willing to pay more money just to get it in that timeframe so you don’t want to let them know that you are in such a rush to do it because they can use that against you.
- Do not tell them how much you are willing to pay
Never tell your agent how much you are willing to pay. Do not give them your top figure; keep it hidden because what they are going to do is firstly they will try to get you higher. Secondly, they are probably going to take your top figure and use it as negotiating power as other potential buyers and say well this person is willing to pay X amount.
They can try force you into a bidding war now obviously if you are in a bidding war you probably going to have Pikachu Hoodie to offer your top amount to secure the property but if things are a bit slow you are making an offer, don’t tell them what your range is. They will figure out how much can the client be stretched to our favor.
- Don’t let them know you have no idea what the Market is doing
If they hear that from you then they are going to push you continually to try to get highest amount or they can get you in a bidding war against someone else so by even if you do have to have it by staying calm, cool and collected and not all letting that you can negotiate more effectively.
It is a hard thing to do but if you do it, it is going to help you.
- Discovery options
Do not show yourself as you are depending on the real estate agent. Always use discovery options and it is good if you have some substitute. Too much relying on agent will give him such impression that you depend on him too much now.
- Research the property
Do a good research about the property in desired location so you would be having a lot of information about what you are looking for, and there will be fewer chances of you to believe instantly on anything that agent tells you. Most of the people do not have sufficient information about real estate and they prefer to hire estate agents where estate agents exploit such situations.
- Don’t Show them you need to have it
Never give such impression that that you are in need to buy particular property and you like it the most etc. It will result in exploitation of your Impuissance and most likely, you will have to hear a higher price in that case. Take smart moves and educate yourself prior to any big investment of your lifetime.
These six strategies are beneficent for your favorable negotiation with the real estate agent. The key is to educate yourself and gain information about the property as much as you can so you get what you want. Remember, realtors are good at convincing people to their thoughts so it is so important for you to do a little research about the property prices in that particular area.