Negotiations can be pleasant – and here’s how
Happy New Year, my lovely friends! Now that 2022 has arrived and many of you at peace with your decision to buy a new home, I thought we’d start the year off with some helpful hints to simplifying your real estate negotiations.
Be reasonable. Be rational.
Rarely when a buyer goes into a negotiation with a win/lose attitude do things go to plan. That is why rule number one is to be fair-minded when you enter into your negotiation.
In this situation, being reasonable also means being truthful. Don’t be the guy (or girl) who lies to get what they want. Be truthful and make your intentions totally clear from the start.
In the property biz, stakeholders really do value honesty. As the saying goes, “you reap what you sow”, so when you share your good intentions, fairness and honest approach with consistency, you are more likely to be treated the same in return – and that goes a long way where the stakes are high.
Importantly, remember that when it comes to real estate, you are dealing with people’s feelings; therefore, you should tread lightly by showing respect and treating everyone with fairness. You’ll get better results approaching others in such a way, and the overall experience will just be way better.
Main causes of stress in real estate
Some of us get caught up in trying to be a jack-of-all-trades when it comes to buying a property. My advice? Stop. Breathe. Plan.
Buyers frequently overstretch themselves financially or extend their interest list to include homes and properties that are far beyond their budget. And when it comes to sellers, those who overstretch themselves are often trying to sell at unreasonable prices and wonder why their property isn’t selling.
What I’ve found is that sometimes sellers are unrealistic in their asking price because they are prioritising their personal needs ahead of the logical and reasonable sale of their property. For example, many sellers set their asking price based on what they ‘have to do’ in the future – but this just isn’t realistic, and it won’t sell the house.
Embrace a positive mindset
The market will not adapt its price to suit your personal needs – full stop. Therefore to say “I need a certain price” is, I’m sorry to say, foolish.
Change your mindset to wanting ‘the best market price’ instead. If the market price matches your needs, by all means – sell! If it doesn’t meet your expectations, there is nothing stopping you from staying until you are happy with what the market has to offer.
First, decide on the maximum price you can afford, and then search for an area that fits in with your budget – not the other way around. When a buyer sets their sights on a particular area and expects to buy a home at a price within their personal budget, things very rarely go to plan.
Avoid the disappointment and focus your interest on areas within your budget. Remember, you may be looking to buy a home for a good price, but homeowners cannot be expected to lose out financially to appease the first buyer to come along.
So my message to you all in 2022 is to be reasonable, rational and realistic. Whether you are a first homebuyer, a family looking to upgrade or a retiree wanting to downgrade, as long a you are fair, truthful and honest during your negotiations, you can be sure the negotiations will be a lot more pleasant, and the outcome will be a lot better.
Budget first. Location later.
When it comes to embracing the right mindset for property buying, it’s important to plan in a specific order.First, decide on the maximum price you can afford, and then search for an area that fits in with your budget – not the other way around. When a buyer sets their sights on a particular area and expects to buy a home at a price within their personal budget, things very rarely go to plan.
Avoid the disappointment and focus your interest on areas within your budget. Remember, you may be looking to buy a home for a good price, but homeowners cannot be expected to lose out financially to appease the first buyer to come along.
So my message to you all in 2022 is to be reasonable, rational and realistic. Whether you are a first homebuyer, a family looking to upgrade or a retiree wanting to downgrade, as long a you are fair, truthful and honest during your negotiations, you can be sure the negotiations will be a lot more pleasant, and the outcome will be a lot better.