Although the housing market is recovering steadily, it is still possible to obtain significant discounts on the final price of a home, if you negotiate effectively.
When it comes to the crucial moment in the negotiation process, both Ignacio Pellicer and Pedro Heredia, partners of the law firm Pellicer & Heredia, and specialists in Real Estate law, always recommend that you effectively negotiate and achieve discounts which can range from 5% to 20% of the initial price.
Make a reasonable offer. In order to do this, it is essential to know the market thoroughly. While an offer 10% below the initial price in some cases may be reasonable, in others it could be as much as 30%. “An error of this type, as well as knowing how to negotiate with the seller, can lose a lot of money.”
Always have another option when in front of the seller. Show yourself interested but not desperate. Always enter negotiations with a Plan B in mind. This allows you to convey that you have more options.
Have a time frame limit for acceptance of the offer. This period is usually between three and five days, because “generally the fastest negotiations are those that move forwards”.
Have as much information as possible from the seller. In the case of re-sales, the needs of the seller form a crucial part in the speed of the selling/buying process. When the owner needs to sell because of or often in inheritance cases, it is usually easier to negotiate a reduction in the price.
Show yourself to be flexible with the terms of the agreement. Many owners reach an agreement on when to sign the deeds, etc. However, the most important aspect for finalizing the sale may be the price – be it a higher or lower price. Look out for the needs of the seller to move the negotiations forward.
Speak to the seller. This is your best option. Oddly enough, psychological factors play a key role in selling a home. For many sellers, the feeling that everything is moving forward smoothly, such as having the mortgage already approved by the banks and that the seller is keen to buy, play an important part in the buying and selling process. These aspects will give peace of mind to the seller.
As a seller or buyer, please do not hesitate to contact a law firm regarding any aspect in a housing purchase or any other legal enquiry in real estate transactions.