Negotiate when buying a home
If you are aware, the actual transaction price is not simply a matter appropriate for the seller and the buyer. Transaction has its own art of negotiation, that can not be done by everyone.
However, do not worry, because the negotiations can be studied through a strategy or trick. Consider the following notes:
Knowing the market price
Before deciding to purchase units, make sure you match the prices offered by the owners. However, before making an offer, you’ll want to find out first home sellers to offer prices similar to prices in other homes in similar conditions in the region.
Know well the condition of the home needs additional repairs or not, and how long the house was offered for sale. From this information, you can get the best picture of the purchase price for the house.
Do not carry over emotions
When interested in a home, you should still look at it objectively. If too carried away, in the sense of love that house, it would not be profitable. Once you engage the emotions in negotiations, the selling price of homes will not be profitable for you.
Preparing to compromise
No negotiations, no compromises. By staying in control of the negotiation, be prepared to compromise with the seller or be flexible.
Ask a price quote after the survey. Typically, you will be tempted and immediately after the offer was interested in a home. You should not do that. Take advantage of three or four times a survey for the analysis of the calculation of the tug at once with the seller. Give a reasonable offer, which is in accordance with the cash flow of the house.
Basic supply of cash flow
Each was about to make an offer, you need to calculate the potential profit. Start price comparison market, the price of liquidity to the transaction price. Thus, you can estimate the potential of cash back that can be obtained. Next, calculate the potential cash flow. From the results of calculations that you can give a decent offer.
Determine the maximum supply
A good investor is that they are already making arrangements prior to negotiating. Thus, when negotiations take place, you have determined the maximum offering price.
However, if the seller looks difficult to accept a price below the maximum limit you, should negotiations be stopped so as not to waste time.
Do not mention price first
Do not you ever be the first to mention the price. Let the seller the selling price as well as how the deadline for bid. Usually, after which the seller will ask the offering price.
When bidding, give a lower figure than the price of the desired transaction. For example, want to transact at the rate of Rp 1 billion, then an offer at around USD 100 – USD 800 million. Thus, there is a range of USD 200 million – USD 400 million with which to negotiate.
Do not be influenced
Typically, the influence will come from the broker or salesman when he first saw the house. If you do not have complete knowledge about the property, the real decision is the decision of the broker or salesperson. This is where the importance of the 3-4 days prior to bid. Because, you can use the time to obtain complete information.
Ask for a grace period
Once agreed upon, there is still a further negotiations relating to the payment period. Financing is aided by the bank takes about 1 month. So, you have to ask for a longer period for the liquefaction process. Typically, the seller will understand and accept the request.