Information gathering, timing and broker representation can all play a part
Negotiating for the best deal on a home can be tricky, with both sides looking to get the most out of the transaction. Buyers are not only looking for a good price, but also high-end add-ons and other amenities to sweeten the deal. Meanwhile, sellers are usually hoping to make the most money with the least amount of effort.
Luxury properties can be even more complicated, with both buyers and sellers having high expectations of the deal.
In addition, emotions may also be at play, adding yet another layer of complexity. One of the first things to do is cut that emotion out and set expectations.
But there's more to it than price, and there are a lot of things that can be negotiated, including the closing date and other deadlines, range of appliances and fixtures included in the sales price.
Buyers should have an agent, no matter where they are looking. Someone who represents their needs and gives then impartial advice. Additionally, for those buying a property in country in which they don't live in, having someone with local knowledge is crucial.
Preparation is key
Research, both of the home and the neighbourhood around it, is crucial.
Things like what renovations have been done, how long it's been on the market, what comparable properties in the area sold for are all good things to know. If it's possible to find out the situation of the seller, that can be useful, too.
If the seller needs the money, a lower offer might work, otherwise the seller might be in a position to wait for a more lucrative deal.
Or, if it's an all-cash deal, that can sometimes get buyers a better price.
Negotiation tactics are based on the market
Knowing the conditions of the market is also important, and varies in different communities.
Never try to save money on surveys. Especially when dealing with historic properties, buyers have to know what they are getting into.
Unique deals can be made on new constructions
Negotiations take on a different tone when dealing with new construction that may not even be built yet
It can be difficult to negotiate prices with developers, but instead there might be some flexibility on the extras included in the deal (parking spaces, cellar, fixtures and fittings).