Whether you are property investor or homebuyer, buying a property is the biggest decision making ever! One step mistake will make the process of property purchase go wrong. While the biggest mistake that the most property buyers make is buying their dream home or investment property without having a proper and detailed plan in place in order to obtain the best terms. Why we said “best terms” instead of “best price“? Well, in fact, you couldn’t change the property purchase price (unless there are certain reasons that the seller want to sell-off their property quickly) but you can negotiate for the better terms of property purchase.
Why Negotiation Is So Important In Property Purchase
In the process of property purchase, the very first step you will need to do is understand the property price in current market. If you skipped of this step, you will never know whether you’re being “earned” this property or being overpaid.
Besides of that, negotiating a property purchase have to start with the understanding that the property sellers want the highest price and the property buyers want the best possible deal, with the final result falling somewhere in between. However, sometimes, one party have to begin the negotiation, its depends on the current property market conditions.
For example, in buyer’s perspective/ market, if the property’s supply is higher than demand, the buyer will have the advantage of negotiation. On the other hand, in a seller’s perspective/ market, if the property’s supply is less than demand, the seller is a dominant position of negotiation. Therefore, it is extremely important to having a clear understanding of current property market conditions before stepping into a negotiation.
So, now you understand why negotiation is so important in property purchase. As a wise property buyer (since you have read our articles), you have to knowing the current property market moving before meet up the property seller, as you need to know which party stand in the advantage of negotiation. Good Luck!