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Negotiating an asking price for a property is a key step in the property investment process. As an investor, you want to get the best deal possible. Knocking a few hundred or thousand dollars off the asking price can mean you have a more viable investment on your hands. Sometimes, sellers can be very stubborn and refuse to accept a penny less than they initially list the home for. However, asking these three questions can help you lower the asking price by putting the ball firmly in your court…
Have there been any crimes or incidents committed in this house?
You should ask the real estate agent this as they have to tell you the history of the property. It may transpire that this particular home was a crime scene at one point in time. Something really bad could’ve happened, but the owners have hidden it after calling in some biohazard cleanup services. Once you’re aware of this, you are now firmly in control of the negotiations. You can tell the owners that you’re offering way less because they’ve got a home that used to be a crime scene. As such, it will be hard for them to sell it if this becomes public knowledge. They should feel lucky that someone is still interested after learning about the previous incident, meaning they’re more likely to accept a lower offer.
How long has the home been on the market?
Again, ask the estate agent this. Sometimes, they conceal how long a home has been on the market because it can dissuade some buyers. But, they have to tell you if you ask. It may be revealed that this property has been for sale for years. Consequently, the owners are clearly struggling to sell it. As such, you hold some bargaining power in your hands. Submit an offer that’s less than their asking price but still generous. Tell them that they’ve not been able to sell the home for years, so this is the best offer they’ll get. It could tempt them into giving in and finally selling.
Why is the house being sold?
Sometimes, this question can really help the negotiations. You might discover that the owners are selling because they are moving to a different city or country. Or, they might sell because they have a baby on the way and need a bigger home. In situations like these, the owner is desperate to sell the house as quickly as possible, meaning they can move and get their life sorted. Learning this information can help you as you can negotiate with them, offering a lower price, but telling them that you can commit to buying the house right away. If you have no mortgage to worry about, this is even better. The owners should be tempted by a quick sale, letting them get the money they need to move home and start their new stage in life.
Negotiations with owners can be hard, but a few key questions will help you out! Of course, if they are still being stubborn, don’t be afraid to back out and walk away. Ironically, showing that you’re not interested can suddenly make the sellers more interested in a lower offer.
