13 mistakes to avoid when negotiating
Are You thinking of making an offer to purchase a property?
Here we will discuss the 13 mistakes that you should be aware so you will maximise your leverage.
Without any further due:
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Decide (BEFORE you start negotiations) how much you are PREPARED to pay
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Create a plan around that top figure. Assuming your first 2 offers will be rejected. Taking into account how long the property has been on the market, why the seller is selling, similar recent sales etc.
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Be careful what you say……”I want to start at”, “My initial offer is”, “My starting offer is”, etc. are all NO NO’s
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Don’t offer too low….it could go against you
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Don’t offer on multiple properties at once... Negotiate on one at a time and use that as part of your plan/leverage. Urgency/setting deadlines is a good thing.
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Don’t frustrate the estate agent off. Get in their good books. Remember they’ll be recommending whether the seller accept your offer or not and most humans like other really nice humans (yes, estate agents are human!)
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Put your offer in writing immediately. Email is fine, attaching mortgage agreement, proof of deposit, solicitors details, mortgage advisors details, preferred timescales (estate agents like organized buyers)
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Use other points for negotiation rather than increase your offer. Such as speed, certainty, your strong position, you have the option to NOT tie in your sale.
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DON’T show desperation…..such as “I really need this property as my buyer is putting the pressure on”
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If you have to go to your top price, ask for something in return…..white goods included, seller to vacate by X date, garden furniture’s, etc etc.
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Ignore the estate agent fluff, such as “there’s been lots of interest”, “we’ve had offers”, bla bla bla and stick to your plan as per point 2.
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Don’t be afraid to walk away or let the seller stew for a couple of days. Think Mexican standoff.
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Use a professional negotiator on a no saving, no fee basis like Property Canvas Certified Negotiator.
Author: Christos Nikolaou
BEng Mechanical Engineering, MSc Real Estate, ETEK Property Valuer, Register and Licensed Real Estate Agent.Christos Nikolaou is the founder and Managing Director of Property Canvas, he holds a license as an Estate Agent from the Association of Real Estate Agents of Cyprus and he is a registered Property Valuer in the Technical and Scientific Chamber of Cyprus (ETEK). He is the author of our “13 mistakes to avoid when negotiating” and is a certified advance negotiator.
