Date Posted: 2012-05-16 06:11:49
Site Posted: Myproperty.ph
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In a real estate deal, both the buyer and the seller want to see the odds come out in their favor if they can’t reach a fair outcome. To ensure that you can at least get the most out of the transaction, you have to consider a lot of factors, some of which you can manipulate, and others which are beyond your control.
1. The market condition. The market tends to change every so often; there are times when we are in a buyer’s market (more sellers than buyers), other times a seller’s market (more buyers than sellers) happens. Depending on what is happening in the local market, the buyer or the seller may have to work harder to get the other to agree to the deal. If, for instance, you are a buyer in a seller’s market, you might want to make your offer a bit more attractive to stand out from the competition.
2. Financial issues. One of the things that a seller looks for in a buyer is if they have been pre-approved for a loan. Getting a mortgage pre-approval can definitely put you ahead of other buyers because it shows that you are serious about purchasing the house for sale. On the other hand, if a seller’s house is on the market because the owner is having financial difficulties, then a buyer has the upper hand when the time comes to reaching a final price.
3. The options. Here’s a situation: two identical houses are being sold for exactly the same price. If the seller of one of the properties agrees to cover necessary repairs that a home inspector has pointed out while retaining the original price, the buyer will more likely purchase this house than the other one. In a different setting, a buyer can win over a seller by offering benefits, like covering part or all of the closing costs, if the seller accepts his offer.
4. The back-up. Are you a first-time seller negotiating with someone who has been investing in real estate for a long time? Or is this your first time to buy a house, and the seller has sold countless houses before? Your negotiating experience will also play a big role in whether or not you will come out on top. If in doubt, hire a real estate agent with excellent negotiating skills.
In a real estate transaction, negotiations can go on for a long time because both parties want to ensure that they get what they want. If you can’t, don’t be stubborn to the point that you will cancel a transaction if you’re not perfectly happy. You might have to sacrifice on certain aspects, but what’s important is you get the most out of the deal.
Jillian Cariola, Writer
(cover image by lusi)
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