How to Renegotiate a Price Reduction on Real Property
Paying the asking price for a property is rarely necessary. However, negotiating a price reduction on real estate property requires confidence and some knowledge about the local property market. In many cases, even someone new to real estate investment can reduce the asking price by 10% or more with some informed negotiation techniques. Limit negotiation time as much as possible to ensure that you use your time efficiently and wisely. The more time that you spend negotiating, the greater the chance that you might offend someone.
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Instructions
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Contact a licensed home appraiser for more information about a property. Appraisers have access to government databases that have information about recent home sale prices in an area. Consult with an appraiser to ensure that the listing price on a property is reasonable.
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Remain polite at all times during real estate negotiations. Argumentative behavior, personal attacks, threats and other such communication can easily derail negotiations. Use professional language, wear appropriate clothing and treat other negotiating parties with respect.
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Negotiate with all interested parties in the deal present. For example, if there are lawyers, parents or other extended family involved in the deal, ensure that they are present during any substantive negotiations. This will greatly simplify the process, particularly if such individuals may have veto power over the deal.
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Inspect the property thoroughly when negotiating real estate. If you lack construction expertise, you may work with an independent contractor to conduct the evaluation. Flaws with the home could result in the price getting lowered. It's to your advantage to have as much accurate information about the property as possible.
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Offer to purchase the property in cash in return for a lower asking price if you can afford it. Many sellers will reduce their asking price in return for a fast sale of the property. If you have already been pre-approved for a mortgage, inform the seller of that fact as a method to improve your negotiating position.
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Continue negotiating until you have arrived at an acceptable deal. In general, buyers can only raise the price from their initial offer and sellers can only lower the price during negotiations. Fulfill all signed contracts.
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Tips & Warnings
Most of the same techniques advised in this article will apply to negotiating the price of commercial property as well. When purchasing commercial property, review the expenses and any information about the tenants of the property in detail. If you find any discrepancies or cause for concern, inform the seller and use it as a negotiating tool to request a lower price.
Have a surveyor evaluate the land around the property that you intend to purchase before you buy it. There might be issues with drainage, soil erosion or other problems that may otherwise be overlooked. Use any facts that you discover about the underlying land in your negotiations.
