How People Get Burned In Real Estate Negotiation: Most Common Mistakes

By Lenny Dalembert

Among the trickiest existing business today, real estate negotiation is one that surely makes it to the top of the list. If an individual is willing to know everything and anything regarding property investment as well as the ins and outs of realty market, it is possible to succeed in this kind of business. If not, however, it is better to leave everything off to the hands of professionals.

You may think highly of your haggling skills, but buying a house in Sydney is not quite the same as buying souvenir at the Mongkok Ladies Market. Try and you’d find out soon after starting that you bit off way more than you could chew. The pros in the feeding frenzy that is the real estate market would be quick to notice your fumbling attempt and make short work of you. You could end up overpaying for a piece of property or getting dragooned into buying something before you’re ready to make a decision. And thus do the ignorant plunge to their destruction. Such an environment is teeming with financial landmines; the layperson definitely needs an expert to steer clear of disaster.

For the sake of driving home the above point, here are some of the common real estate negotiation blunders non-professionals commit:

1. Not doing the necessary research. While some details about a property are readily available, others you really have to take the time and effort to get. For instance, you may want to do a reconnaissance of the community to find out what the people in the neighbourhood are like. If the sellers aren’t exactly being straightforward about their motivation for giving up the property, this is how you’ll find out.

2. Limiting yourself. Do not stop at the first property you like and persevere at all costs to get it. It’s best to have options when you start negotiating. Subtly let the sellers know that you do have other choices and that you’re not desperate to buy their property.

3. Being unable to appreciate the seller’s situation. Insight into the seller’s perspective is crucial. Know what their fears are and use them to your advantage. It’s not really mercenary; you’re not going to lowball the seller, but knowing how much of a rush he or she is in to get rid of the property gives you bargaining power.

4. Being too candid. While you want to know as much as you can about the seller, you don’t want to divulge too much information about yourself – like what kind of budget you’re working with; this can be used as leverage.

5. Naming your price – specifically. When extending an offer, do not cite a specific number. Having a range to work with gives you flexibility and room to negotiate.

In real estate investment, you’re not dealing with chump change. To protect yourself from a bad purchase, it’s important that you work with professional real estate negotiators whose expertise can prevent costly mistakes.

If you are looking for the best way to buy a property and are looking for a company that gives real estate negotiation tips, PK property can help you.