Negotiating the PERFECT deal!
Category General
Negotiation skills form part of concluding any transaction with no exception to property.
In a fluctuating economy, negotiation tactics have become a common phenomenon in the process of concluding an agreement.
Years of research and tests on this subject have been conducted to establish ways in which one could negotiate most effectively.
Below follow a list of guidelines that we have put together for you (buyer or tenant) that will assist you with negotiation skills:
- Always refer to market related rentals or sales prices. Doing a bit of market research, and knowing more or less what has been achieved in the market will put you in a strong position to negotiate effectively. Property owners and Landlords will, in most cases consider an agreement that is based on thorough market research and market related prices.
- Ask your broker or agent for assistance and guidance. Being in the property industry, it is part of the broker or agent's job description to conduct constant market research to ensure that he/she is familiar with the current market rates. There is no such thing as pride when it comes to successful negotiations- never be afraid to ask for assistance!
- Bona-fide appraoch. Show respect by resisting the temptation to make a "cheeky" offer. In most cases, there may be a bit of room to negotiate an agreement that is in line with the expectations of the owner or Landlord, however if an offer is completely out of line, or far below the asking price, chances are that the owner or Landlord will feel insulted.
- Use creativity to overcome financial obsticles in an agreement. Again- you can ask your broker or agent for assistance. If there is a genuine need to reduce certain costs pertaining to an agreement, one can always look at amortisation options.
- Put yourself in the owner or Landlord's shoes. Remind yourself of the fact that every property owner or Landlord has the hope of making a return on the property. If you were the person selling or leasing the property, would you consider the terms of your own offer?
In short, the best negotiations take place when both parties can see eye-to-eye and understand each other's needs within a fair and bona-fide setting.
As property brokers, we welcome the opportunity to assist YOU with your negotiation needs and we look forward to hearing from you!
Author: Index Property Solutions
