One of my favourite parts of acquiring a property is the negotiation. 99% of buyers believe the negotiation begins when you put forward your first offer. This is why 99% of buyers do not achieve the best price or most favourable terms possible.
It is essential that you remember that the negotiation begins the second you make contact with the estate agent – so even before you have viewed a property. The reason for this is that negotiations are more often than not decided by personalities rather than facts.
If you question this, just think of all the times that you have put forward a rational, fully researched proposal that has been rejected for no obvious reason. This could be a business proposal or suggesting something to a loved one. The fact is that very often emotions play a huge role in any negotiation, because as humans we are emotional and ego driven as well as logical.
As I have mentioned in my book The Insider's Guide to Acquiring Property in London – the impressions that the estate agents have of you is essential. They need to know that you are prepared, organised and capable of transacting swiftly and efficiently when you find the right property. This means that you will see the best properties first. However, just as importantly their confidence in you will be relayed to the sellers. Now this may seem obvious but I have lost count of the number of times and agent has said to me “we have had a good offer from another party but I am not sure that we trust them”. This is one of the reasons we are often able to acquire properties despite not putting forward the highest offer.
Also if the agent likes you then they are more likely to be helpful. It is a simple fact that people prefer to do business with people they like than ones they don’t – providing ,that is, you can act efficiently.
It is therefore important to be polite on all viewings and to build a relationship with the agent. However, it is also important that you take a consistent approach to the viewings. You should neither be hugely negative or positive, but just give clear feedback on what you like or dislike about each property. This consistency is important because what you do not want to do is start jumping up and down in excitement saying “This is fantastic! This is the one!” when you find your ideal home - this will seriously weaken your hand in the negotiations. Now you may laugh and the example I have just given may sound like an exaggeration but I have had one or two clients do this and my clients are highly intelligent and sophisticated individuals. There are ways to counter-act exuberant outbursts but it is much better to show interest while conveying the fact that you are not desperate to buy the property. Because if you play “the reluctant buyer” and make it clear that you will be happy to walk away from the property, you will be in a far stronger position psychologically.
Now although these are very simple negotiation concepts they should not be dismissed. They are part of the foundation of your negotiation strategy and I will go into this in more detail next time.
However, if you have specific questions about negotiating, please email me at firstname.lastname@example.org
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“The Insider's Guide to Acquiring Property in London” covers every aspect of achieving the best terms and also provides even more advanced strategies for finding and acquiring your ideal home.
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Here is just some of what the book includes:
- The crucial thing you need to get right about your finances, and why having the funds to purchase the property is not always enough to close the deal
- How to avoid a simple mistake that could see you offering more money than another buyer — and still not have your bid accepted
- A little-known strategy that uses an estate agent’s sales targets to acquire your ideal home
- Why buying a property with a short lease can actually be an astute investment, but only when you understand the real meaning of buying leasehold property
- The 13-point checklist that quickly puts you in a powerful negotiating position by extracting crucial information from the most reticent of estate agents
- How to use other agents to find the true value of any property you are interested in. This strategy is never even considered by most buyers, but it puts you at a distinct advantage and can save you hundreds of thousands (or millions) of pounds on the purchase price
- The nine fundamental questions you must ask the seller to give you a sound basis for negotiation, and discover how likely it is the transaction will be completed successfully
- The secret to achieving flexibility on price without getting into arguments with the seller or the estate agent, or trying to “bully” anyone. (This tip alone can be worth hundreds of thousands – or even millions – of pounds to you)
- How to motivate a seller to choose you as the preferred buyer by understanding price is often not the most important factor in a property transaction
- The right way to increase the amount you are willing to pay when the seller rejects your offer. There’s a right way and a wrong way to do this, and the one you choose will have a huge effect on the final outcome of the negotiations
And many more strategies you can put to use to gain a tremendous advantage when it comes to acquiring your central London home.
Of course, such an in-depth guide to acquiring a central London property is not for everyone. These strategies are applicable only for those dedicated to acquiring the most prestigious homes on excellent terms.
However, if you are absolutely serious about acquiring your central London home on the best terms possible, you can reserve a copy of my book simply by entering your details in the box below. Please note, this is a physical book which I will send to you in the post, so please supply the best address to receive the package.
Yours for a successful home acquisition,