Investment in property is one of the most significant and expensive transactions of one’s life. One must evaluate all the possible options before deciding on a property. The sellers and the developers usually quote a high price to get maximum profit from the given deal. The investors must engage in price negotiation to get the best deal and value for your money.
Smart Tips To Negotiate The Price of The Property
There is no harm in trying to get the seller to come down on the price of the property. Given the current scenario of the Indian real estate market, when the properties are overpriced and the demand is very low, the scope of price negotiation is very high. One must have a sound strategy on negotiation and must remember that it is an art. A good negotiation skill coupled with real market information can give lots of benefits.
Before sitting on the negotiation table with the broker or the builder, one must do a thorough research on the property market of the chosen location. Try to get information on the recent trends, the current price of the property prevailing in the market and price on offer by various developers for similar properties in the specified location.
The duration for which the property has been put up for sale is also very important from negotiation perspective. The price analysis of the similar property is a must. One can inquire about the launch price and compare with the latest sale price to derive at the expected discount rate from the seller.
Always downplay the amount you are willing to pay for the property of your choice. The developer or the broker will always try to show the most expensive property in their portfolio. If you have fallen for a property, do not make it very obvious and play it cool.
Quote your price at a discount of 15% of the asked price to start the negotiation which is not the very unrealistic target. According to industry experts, sealing a deal at a discount of 7% to 8% is a fairly good deal.
Cash flow situation of the developer and his unsold inventory are the factors playing a major role in the price negotiation. The buyer has the upper hand in such situation. The developer will be willing to give a good discount to clear his backlog and generate cash.
If the property is held up for a long time, then there is bound to be some reason behind it. Either the house is overpriced or it has some problem. The developer will try to get the same disposed of as quickly as possible thereby agreeing to good discount. The discount will be good in case the seller wants to sell the house quickly for any reason.
Let the developer know that you are looking for a good property and would like to make a quick purchase. Show them the ready money you have for the initial down payment.
The developers take a keen interest in buyers who do not keep the offer waiting and are willing to make payment immediately. They are likely to offer a good discount to serious buyers. Many times, the developers are willing to sell at a very low price to generate quick cash for their next project.
Keep a realistic approach as the developers will not lower the price below a fixed point to avoid spreading the fact that some customers got a lower price than others for the same property. Always try to position the offer as a take it or leave it proposition.To know more visit Propknack