Correct property negotiation will result in the acquisition of the intended property at the desired price. The most important step before entering into any negotiation is to have a very concise plan of action. Be clear of what outcome you desire and what the vendor would like to achieve from the transaction. The negotiation is successful only when both parties are happy with the transaction.
If at all possible try to conduct the meeting face to face. This will enable the sellers and buyers attitude and mannerisms to be monitored. Further, the transaction must be held in a place where both parties are comfortable, most often this is the vendors property. Preparation is key. Anticipate any possible questions that may arise as well as the answers. The ultimate goal is to close the sale at a price that you are comfortable with.
Here are some helpful tips on how to conduct negotiation and close deals. First, investigate the situation of the seller. For instance, find out whether or not the property is encumbered or has some liens. If so, inquire as to the manner and consistency of payment. In this case, the eagerness of the seller to dispose the property will be determined. Several missed mortgage payments would result in the property owner being more motivated than if he had only missed one payment.
Second, there must be a real and full determination of the value of the property. The assessed value can be determined by obtaining land registry records. Also, determination of the price can be obtained by making comparisons of the different properties which were recently purchased within the vicinity of the target property. It is also beneficial to inquire from the current owners the condition of the property. All renovation expenses and any new construction required are also factors that need to be considered.
At this point, you are well oriented of the sellers circumstance as well as how the market perceives the property. Third, make it appear that there is already prior approval of the transaction. This will make the seller feel that the money would be readily available upon the execution of the document conveying the property. The offered price must be reasonable. It must be reasonable enough so as to attract the seller and to cover different assessments and fees such as real property taxes and dues. As the purchaser, you may also want to execute an option contract to tie the seller to you.
