The next property you buy could perhaps be your very first property, whether you’re buying outright or you’re looking to rent. Either way, you never ever just accept the listed price as is, quite simply because in the real estate market, as with many other markets for that matter, there is always but always some wriggling room. Between the often high commissions realtors are always looking to make on each subsequent property sale and the urgency with which the seller or renter of the listed property seeks to start collecting payments through the sale or renting out of their property, you can find some good wriggling room which can have you saving even up to 20% or more on the original price of the property.
You do however need to know the basics of negotiating, so I’ve enlisted the help of an expert in the field (a real estate agent) to put together a couple of powerful pointers that will have you negotiating your next property purchase like a boss!
Don’t settle for the first property you view
Even if you’ve notched up a fair bit of experience with regards to moving house, settling in to a new place and going through the whole process of picking out a property to moving in, real estate agents will always have you believing the very first deal they put together for you is a winner. It’s a natural gift they have or a skill they develop since the real money they make comes from the commissions tied to each sale completed. So naturally they’d want to spend as little time as they possibly can and in the process make as much money out of that process.
It isn’t anything sinister, but rather just an efficiency thing, so unless the first property they present to you really does tick absolutely all of the boxes in your checklist, you don’t want to close the deal and accept the first property shown to you.
Conduct some personal value-gauging
After the first property has been shown to you or after you’ve seen a couple to a few properties, your realtor will likely have a much better idea of exactly what you want, in which case they’ll now only be dealing with properties you’re likely to settle on based on your personal preferences and needs. The property you ultimately settle on for example might be based on something a little more personal to your mid- to long-term future goals, such as perhaps the fact that you’re planning to start a family soon, in which case you’d factor in considerations such as the best school districts in Florida if that is the region in which you’re looking to buy or rent. You don’t necessarily have to explicitly communicate this with your realtor, but rather approach it via something like first running your own search of the best schools in the region or according to whatever other main criteria you’re working with, then perhaps tell your estate agent that you’re looking for properties particularly from those identified regions.
Present your unique case to your estate agent
Now, when you bring together the status of the relationship you will have developed with your realtor with the research you conducted yourself, this puts you in a very powerful position to negotiate. Contrary to popular belief, it’s not really the real estate agent against whom you’re essentially going head-to-head with by way of the negotiations. Yes, the real estate agent does indeed have their interests to take care of by way of how much commission they ultimately get out of the deal, but their own commission is perhaps the last place they look to compromise on, so they’re essentially fighting in your corner to negotiate with the seller or landlord to perhaps ultimately get you the best deal.
Ultimately it’s about knowing the value you’ll be getting from the money you spend and the property that money subsequently buys you, so you’ll have to take into account factors such as whether or not something like an ocean view is worth paying an extra 4-9k for whereas what you really want personally is perhaps something like close proximity to all the best schools in the district, close proximity to marketplaces you can walk to, or having the freedom to not have to join the local homeowners association, etc.