Purchasing property can be a nail biting time as you wait to see whether your offer on that perfect property will be accepted. In a competitive market you will likely have competition for the purchase of every decent property but you can’t win at all costs you have to keep a level head to ensure the investment remains viable. We have some great tips to help you make offers that get the deal done, driving away competition and ensuring you make a great deal on that perfect property.
1. Offer fairly
Offering an amount considerably less than asking can be taken as an insult by the seller and agent and only turn them against selling to you. You should offer what you believe to be a fair and competitive price for the property, in some markets this is often above the asking price depending on how the seller has marketed it. Offering slightly over asking will work in your favour and help you to quickly secure the deal.
2. Offer cash
A cash buyer is a brilliant incentive to a seller. If you can offer cash, then make sure you say so when you offer as the majority of sellers will be turned by this as you will complete so much quicker than anyone relying on mortgage approval and receipt of loaned finances.
3. Know your seller
Get to know the circumstance and situation of the property seller. Find out if they are in a rush to sell, if they are moving to another property in a chain, if they need to delay the sale until they find a property to purchase etc. All of these things can help you give the right offer. A competitor may offer more than you but be in a chain or unable to complete for months, if you can complete immediately then your lower offer may well be accepted. If you aren’t in a rush and they still need to find somewhere to move let them know you can wait to complete. The best offers aren’t just about money, they are about solving problems for the vendor!
Many buyers jump in with offers as soon as their first one is refused, a good negotiator waits. Just wait and see if the seller comes back to you. The waiting can be the hardest part but if you jump straight in you are likely to spend a lot more. Waiting leaves the vendor second guessing if their counter offer is still too high, they may get back to you with a lower price without you even having to offer again if you wait patiently for a couple of days.
5. Head first
As much as you love a property or feel it is the one for you, do not let your emotions rule you when it gets to this stage. If you are serious about investing in property you will lose out on certain houses that you really wanted. Try not to view every non complete as a failure or defeat but rather as another no on your journey toward the next property you will succeed with. If you are driven by your heart you will end up spending too much to make your investments viable and you will struggle even more with your emotions should your offer not be accepted. You need to set a budget from the outset and stick to it!
Before you offer think about how you can make your offer stand out from the crowd. Whatever you can offer state it clearly so that your bid is more than just a number but a solution for the vendor.
For more advice, mentoring or training or property investment get in touch with the team here.
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