Making an investment such as buying a house might cost you a consistent amount of money, this is the reason why you need to have an expert professional who are able to negotiate the price on your behalf, especially if you are purchasing in a different Country where the language might constitute a relevant barrier.
There are several aspects to take into consideration; some of them are listed here below:
- Looking at the market price in the area where you are purchasing, knowing the price per square meter in that area, the property condition as well as the date in which the property has been built. These are relevant information to start with.
In fact a first study and investigation on the property and related market is fundamental. If you have appointed a professional to deal with this aspects, it is necessary that he appears prepared before the other side or his real estate agent. In small words, the other side has to feel that the buyer or his representative is well informed about the market.
Once we are aware of the market trend, we need to check if the property has consistent works to be done (renovation works), and we need to have a clear picture on the expenses related to them.
This will allow us to have a clear understanding on how much we will spend once we have purchased the property, therefore we will handle the negotiation with more preparation and strength.Whenever we believe in what we say, it is most luckily that the other side will accept our offer. Negotiating in fact does not just mean offering a lower price with
arrogance and miss knowledge, but means having good reasons to lower the price justified by concrete and effective motivations.
- Asking an external professional, possibly a lawyer, to negotiate the price on your behalf, is a way to avoid showing your weaknesses to the vendor. When you are too much involved in a transaction it is common that your stress, anxiety, fear might be noticed from the vendor, and this might take you to a bad negotiation and consequently to an unsuccessful transaction. Being personally involved never makes you in a strong position.
- Understanding the reason why the property is on sale is important. Your lawyer can check how this property has been transferred to the actual owner/s and, depending on the reasons, we can find the vendor weaknesses.
For example, if we understand that the property has been inherited, it might be possible that the heirs are willing to sell it as soon as possible so that they can close the potential outstanding situation related to the money that they will acquire from the inheritance, therefore (but this is not necessarily a rule) it might be possible that they are in a hurry to sell.
An experienced and professional lawyer will be capable to notice any of these details and use that information in your favor.
Your lawyer can check the origin of the property and how many transactions have been made in the past. If for example a property has been sold 10 times in 10 years, then it is important to understand the reason. Any information can be interesting and might take you to discover the vendor weaknesses; therefore, this will guide you to the right direction for a good negotiation.
It is also essential to know when the property has been put on the market, and how many offers have been made since then. If you are the first to make an offer, the owner might wait for other offers to come, but if you declare that you are willing to purchase a property within a short term (for example because you are leaving the country soon or you might be interested in other investments), this can represent an extra weapon in your arsenal.
Together with what we have listed above, there are many other secrets and aspects to understand how better negotiate an offer, Luxury Law takes care of this during the process of giving you legal assistance to purchase your dream home.