Real estate negotiations are tricky: The buyer and seller are both seeking the best deal. Here are some tips to help you in your negotiations.
The best advice is to be prepared. Most importantly have a real-estate attorney look over all documentation. Also consult an accountant to make sure the financial matters are accurate.
Be sure to do your homework before you get to the negotiation table. Find out why the seller wants to get rid of the parcel (or, on the other hand, why the buyer is interested). How eager is the other party to close the matter? Why? It may be difficult to find out the information you need, but do try to have a cordial meeting with the other party before the negotiation meeting so you both can find out what you need to know.
In addition to working with the other party, be sure you compare the parcel to others in the area. Compare its amenities and price to others in the area. (This information should be available from the real estate broker). Also check out the neighborhood: Are there a lot of homes for sale? Is the neighborhood in generally good repair or does it seem to be on the decline?
If you are a potential buyer, try to meet casually with the neighbors of the parcel you are interested in buying. Have they noticed any problems (i.e., are there a lot of repair trucks on the property?) This may reveal hidden problems that you may have to fix later.
Once you have done your homework, you are ready to negotiate. If you are a buyer, you will improve your position if you are already pre-approved for a mortgage, rather than just pre-qualified. If you can offer cash-in-hand, you may get a better deal than a mortgage.
Be careful with what you offer: If your price is too high (for the seller) or too low (for the buyer), the other party won’t take you seriously. No one wants to be taken advantage of. Similarly if your figure goes too far in the other direction, you won’t be able to negotiate a better deal for yourself. Try to find an acceptable price in the middle of the price range.
Don’t forget to negotiate other variables as well, including closing, title and repair costs, closing dates etc.
Once you have reached an agreement, be sure all items are listed in writing. Read all agreements carefully and make sure your attorney reads them too. Do not be afraid to renegotiate anything in the contract that is unacceptable to you.
If you carefully research your property and read all documentation, you should be able to get a fair deal in real estate. Remember however, negotiation involves give and take: Try to give way on issues less important to you in order to get better deals on those that mean more. That way, both the buyer and the seller will be satisfied.
Peter Wilson is publishing mostly for http://www.alicante-spain.com , an online site on property prices costa blanca and property in costa blanca. On his site you might find out more about his abstracts on property in costa blanca and property for sale costa blanca.
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