5 Real Estate Negotiation Tips That Work! Part 2
5 Real Estate Negotiation Tips That Work! Part 2
In last week’s edition we considered some real estate negotiation tips to help you think more laterally in your real estate negotiations and achieve better outcomes. Missed the first tips? Find them online at realestate.com.kh/news
Unfortunately positional bargaining in real estate transactions (that is, focussing solely on a price battle) generally results in poor outcomes for both parties – because everyone gives up the same amount and, therefore, neither party gets what they really want.
Thankfully there are other ways to negotiate! Here are some more simple real estate negotiation tips and watch your odds change:
3. Trust your judgment and make genuine offers:
There is a saying in real estate that ‘time kills deals’ and in a fast paced property market such as Phnom Penh, Siem Reap and Sihanoukville this is definitely the case. As such, we suggest researching the real estate market thoroughly and making an offer that is at, or very close to, your maximum. By making an offer for what you know the property is worth, you have a strong chance of buying the home, land or commercial property, before other buyers swoop in and offer more. Remember this negotiation tip and don’t get caught out offering less than you know the property is worth – if this occurs you are likely to miss out as more aggressive buyers pay more and close the deal.
4. Loose lips sink ships:
Never let the other party know how much you have available to spend or what is motivating you to buy during any real estate negotiation; this risks the seller using these great negotiating tactics on you! This is a key negotiation tip in any situation, not just real estate.
Similarly, given so many properties in Cambodia are marketed as “Price On Application”, it is very important to always make the seller name a price first before beginning any real estate negotiation. With that information you are well placed to make a counter-offer in proper context of the seller’s price. If a buyer makes the first offer, they are in danger of over-pricing the property from the start and that can only ever result in a bad deal.
5. Cash is king:
Sellers hate any uncertainty in a deal and offers made ‘subject to finance’ can be a deal breaker when a competing offer is for cash – even if the offer is for less. This is why it’s critical to have your finance arranged and be ready to settle on a deal very quickly once the price is agreed. See the bank BEFORE you see the seller! Cash is always king in real estate negotiations, in any country, but especially in Cambodia. Being able to offer cash gives the seller absolute confidence in your offer and this is often worth more to a seller than a higher offer that may never settle.
Keep these real estate negotiation tips up your sleeve, and you will secure you dream property in no time; on YOUR terms, not the sellers!
James Whitehead, director of content @ Realestate.com.kh
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Source: News – Real Estate Cambodia