Negotiating the best terms and price for a property can often feel like a tightrope walk, but it doesn’t have to be. With the right approach, strategies, and persistence, you can secure an excellent deal for yourself or your clients. Power Bespoke offers a robust 6-point, 8-day purchase negotiation strategy designed to help buyers get the best terms possible. Here’s how it breaks down:
Understanding the Negotiation Essentials
In real estate, there are three critical areas to focus on during negotiations:
1. **Price**
2. **Timescale**
3. **Fixtures & Fittings**
Using all three can significantly influence the outcome, achieving the best purchase price and terms.
The Six-Step Negotiation Strategy
1. **Agree on a MAX Price**
Before starting negotiations, you should have a maximum price that you are prepared to go to. For example, if you’re looking at an £825,000 house, set your ceiling at £800,000.
2. **Initial Offer with Prepared Documentation**
Place an initial offer of £770,000. Accompany this with mortgage agreement, proof of deposit, solicitors’ details, and mortgage advisor details. This offer will likely be rejected, but it sets a foundation.
3. **Increase Quickly to Show Seriousness**
On the same day, increase your offer to £780,000. This shows the agent that you’re serious and not simply trying to low-ball. It’s essential to avoid giving an ultimatum as estate agents typically dislike them. This offer will also be rejected, but you will then say, “Thank you so much for trying, if anything changes, let me know, and I will keep looking.” This leads to a standoff where you shouldn’t break first. There’s an 80% likelihood the agent will call you back in 2-3 days.
4. **Engage When the Agent Reaches Out**
When the agent calls back, express continued interest but mention you have other viewings booked. Ask, “What figure will your client accept?” When they respond, let’s say they mention £820,000, it’s a sign of mutual interest but with room for negotiation.
5. **Counter Offer Strategically**
Propose increasing your offer to £785,000, on the condition that the seller vacates or breaks the chain. This demonstrates further interest and adds an urgency for the seller to make concessions.
6. **Final Offer**
Finally, make a solid offer of £790,000, conditioned on specific terms such as the seller vacating and leaving an American fridge freezer. This not only increases the appeal of the final offer but also adds perceived value without necessarily raising the financial commitment significantly.
Why This Strategy Works
This structured approach leverages human psychology and market dynamics to your advantage. By incrementally increasing offers and making strategic counter-offers, you effectively communicate seriousness and flexibility to the agent and seller. It also introduces an element of uncertainty for the seller, motivating them to close the deal on more favorable terms for you.
The strategy goes beyond the usual price haggling—it incorporates timescale and fixtures & fittings into the mix, which can be as crucial as the price itself.
Conclusion
Remember, if you don’t have a plan, you’ll be part of someone else’s. Their plan usually aims to get you or your client to pay the highest possible price. By following this 6-point, 8-day negotiation strategy from Power Bespoke, you equip yourself with a powerful tool to turn the tide in your favor, ensuring that you secure the best possible deal.
Stay prepared, remain calm, and trust the process. Happy negotiating!
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This blog post serves as a guideline for effective property negotiation, ensuring you or your clients get the best terms and price. By employing the tactics outlined above, you gain a strategic advantage in the often complex world of real estate transactions.
If you need any help or advice relating to moving house, follow this link to book a call with one of our experienced agents: https://powerbespoke.demo.cmsminds.net/book-online/