When looking for a below market value property the ability to haggle is an essential skillset.
Here are six quick tips on how to negotiate a below market value property deal.
1. Do your research
First of all know your figures. Check out price growth, sales levels and statistics on buyer interest over the last 12 months. If all three have been stalling over the past few months, you know you are in a strong position as a buyer. Just be aware that other investors will be aware of this and be making offers too so don;t try and go in too low.
2. Decide your target price and start lower – Be realistic
Decide what price you are aiming to pay and offer below this so you can always work upwards. However, don’t try and take advantage. Going in with an offer way below the asking price can be insulting and work against you.
3. Build a good relationship with the seller
This is why not insulting or taking advantage of your seller is so important. If you hit a funding snag or find yourself in a lengthy chain it might help to have the seller on your side.
4. Know your position
First time buyers or developers with no chain are in a stronger position than buyers who are already part of a chain. Use it to your advantage as the seller may accept a lower price for the benefit of no chain.
5. Be persistent and tenacious
Don’t be afraid to chase your seller’s agent yourself. Ask for regular updates if there is anything they are waiting on from your end. Time is money so don’t let others slow you down.
6. Be organised and swift
Make sure you stay on top of the sale process and act quickly to secure your sale at the price agreed. Once your seller has agreed to reduce their price you need to move fast. If you take too long or drag your heels they may change their mind or go with another seller.
If you would like us to help source funds for a below market value property just contact us here.