How good are you at negotiating? Do you often get what you want, or do you find yourself talked into something that you never really considered?
Even people who are accustomed to making deals in their professional or personal lives can find themselves unsure and overwhelmed when it comes to negotiating a real estate deal. Especially in a market as shifty as this one.
When you’re buying an
investment property in Washington State, you need to be prepared to negotiate. If that’s not your strongest skill, make sure you’re working with an agent or a broker who is really good at it.
You need to walk away with what you want. Here are some tips and strategies that may help you get there.
Start Strong With Deep Market Knowledge
Entering a negotiation without any understanding of the current market and the strengths and weaknesses that impact both you and the seller is not a great way to start. You need knowledge in order to negotiate well.
Get to know the market.
Before you make an offer or negotiate a deal, you have to know how the market is performing and what you can and cannot get away with when it comes to pricing and sales terms. You’ll begin negotiations from a stronger position when you have the data and the comparable sales figures to support what you’re hoping to get the property for.
Before you begin negotiating on a specific property, analyze comparative properties in the neighborhood. You need to know what they sold for recently. With the right data and market evidence, you can support an offer that’s less than asking. You can also negotiate terms like
inspection requirements, credits, closing date, and even closing costs.
Know Your Own Numbers When Negotiating a Purchase
Understanding reasonable asking prices is one thing. But, you also have to understand what you’re able to spend. Don’t overestimate your purchasing power. You need to set firm boundaries for what you can and cannot afford.
Check your finances before you move forward with a property purchase. Establish how you’ll finance the purchase so you’re not caught off guard during negotiations. Paying in cash might give you more leverage when it comes to negotiating a lower purchase price or a faster closing date, for example.
You should have a budget in place so you know how hard you can negotiate and how much wiggle room you have when the seller pushes back.
Negotiate for Inclusions When Appropriate
Using inclusions can help you get closer to your target price when you’re negotiating an
investment property purchase.
These are just a few suggestions that many
investors have found helpful recently. If you’d like to talk about your own investment property purchase, please contact us at SunWorld Group. We’d be happy to help.
