Watch this content HERE
Negotiation is a skill you have to learn and spend time perfecting so you can get the best outcome for you. Are you a good negotiator? Here are the top 3 mistakes buyers make when buying in NYC.
Don’t Lowball Without Proof
Make sure the number you give is backed up with some research! If you’re buying in a down market it’s pretty common to lowball – make a low offer – but if you are, make sure your agent has done their research. Usually this means choosing “comps” – properties on the market, under contract, or recently sold, that are similar to the one you’re purchasing. If you’re saying the unit is overpriced and you deserve to pay less, you should have evidence to justify it.
Don’t Focus on a Single Number
Don’t negotiate isolated terms. Your home purchase isn’t just the price alone, it’s more like a package of terms, including your closing costs, deposit, contingency, and more. Negotiating a package of terms means that there are more possible outcomes that could be to your benefit. If you don’t want to budge on the purchase price, for instance, you can negotiate around transfer taxes and carrying costs. When you focus exclusively on price, you’re more likely to miss out.
Don’t Act Unprofessionally
This may seem obvious but being polite, diligent, and professional is key to having a seller choose you over other buyers. What do I mean? For example, don’t be rude! You and your broker should work with the seller’s agent, figure out what their needs are, and not make a stressful transaction worse by seeming unserious. Be diligent and professional: stay on top of a seller if you make an offer and don’t hear back, especially if there’s competition over the unit; write a compelling offer letter explaining the offer as well as the reasoning behind it, with supporting information like comparable sales. And don’t ruin your chances by talking too much on front of the seller’s agent – keep your leverage!
Last tip? Don’t forget the big picture, work with a trusted pro, and always have a plan B in case things don’t go your way.
Source: Brick Underground