How to get the best deal
No matter how complex and time-consuming negotiations can be in a seller’s market, getting into them without having the basic knowledge to help you understand what’s going on can ruin all the chances of success you might have. In a seller’s market, where all the odds are on the opposite side, and you have to compete with many other buyers to get the property of your dreams, knowing how to get the best deal can save you thousands of dollars.
That’s why it’s important to know what the process consists of and how to handle everything in a seller’s market to be able to get the best outcome out of any deal.
Do your research
The best way to approach any real estate deal is first to get a better idea of the Florida market and the property you’re interested in. That’s why whenever you find a property that matches your taste and budget, the first thing you need to do is research. Gather information about the location, characteristics, and condition of the property at interest, as well as other similar properties that were sold in the area recently. You can do this by turning to online resources, asking people familiar with the property, or consulting your real estate agent.
This will give you a better idea of how everything moves and get the upper hand when you go into the negotiations as the opposite party (in this case, the seller) has no idea what you know and don’t know. For instance, if they have set the price far higher than other properties in the neighborhood, you will know it and be able to lower it to a more reasonable cost.
Once you get a general idea of the local market, you should get familiar with the people you’ll be negotiating with. You want to know who the seller and the agent are, how long they’ve been in the business, what negotiation strategy they usually use, where they got their real estate license, their reputation, and so on.
To do this, you can schedule a meeting with the other side’s agent to get a better feel of the situation and try to discover something that may weaken their position. It can also shed light on some disclosures, or things you aren’t aware of that can potentially change the whole course of the negotiations or how much you’re willing to pay for the property.
Know the most, let know the least
The research is done to get yourself in the front of the race by knowing as much as you can about the other party, while letting them know as little as possible about you, including how much you know. This allows you to use your knowledge to leverage your situation by appearing unknowledgeable, but actually knowing a lot about the property and the surroundings.
A common strategy in the car dealership industry, for instance, is to negotiate with companies at the end of the month. Why? Because that’s when people are trying to meet their quotas and are willing to bend a little bit more than usual, so it’s a great chance to get a better deal.