Buying a property has never been an easy task. It involves good amount of research, precision and luck to finally zero in on a property that is worth putting your money. What follows after identifying a property worth investing is good knack of negotiation between the seller and buyer. It thus becomes necessary to pay attention to important dos and don’ts of negotiating a good deal that could pay off in all respects and benefit both the buyer and seller.
The buyer should be able to strike a deal within his budget or at the best possible price, while the seller/builder should be able to earn a decent profit on selling his product even after giving discounts and other benefits to the buyer.
“Bargaining with a grocer for a discount of few rupees is very different than negotiating for a property. The latter involves a large investment-grade asset and requires carefully thought-out strategy which accounts for the abilities of a seasoned veteran negotiator on the other side of the table. There also needs to be sufficient acceptance room for alternate results to the discussion,” Ashwinder Raj Singh, CEO – Residential Services, JLL India said.
We bring you a few pointers with the help of JLL to strike a good deal
1. Before negotiating a property deal it is important to do your research about the project – about the developer, his overall credibility and track record of previous projects, the location and property prices in the vicinity, and the overall trends in the property market.
2. Do thorough research about the project. The launch price, current market price of the property along with prices of contemporary properties in the market should be looked into. The project’s strengths and weaknesses should be studied.
3. It is important to understand the price negotiation factor and so a realistic price should be quoted in comparison to offer price. “No developer will react favourably if one starts negotiating by quoting an unrealistically low price compared to the offered price. An average acceptable figure is 15% lower than the quoted selling price. One can go up a little from there, but whether to do so and by how much should be strongly influenced by the findings of one’s initial research,” Ashwinder Raj Singh said.
4. To come across as a serious customer for the builder, it is wise not to put down the property or point out its flaws while negotiating. It is better to focus on positive issues rather than negative aspects.
5. Negotiations should stop once a price closer to one’s budget is arrived at. You may also gain if the builder decides to offer additional benefits not available in the public offer which can add very good value to the deal. The flexibility of every negotiation has a breaking point, and one should never go as far as to breach that point.