The Art of Negotiation in Real Estate: What Does the Process Entail?
So, after all of your searching you’ve finally found the perfect home in Jerusalem and you’re ready to move forward with it. What does this process entail?
Putting in an offer and starting negotiations in a market with such high demand and low supply can be quite complicated.
Where the market stands currently, sellers don’t feel a need to drop their asking prices because they know there is a vast pool of buyers who are interested in their property, and it is more than likely that they can receive full asking price from another buyer.
From the start, your real estate agent should present you with opportunities that they know will have some wiggle room when it comes to the asking price, and encourage you to move quickly with them.
Interesting Ways to Make a Negotiation Work
In the event that after discussing the price there is very little to no room for negotiation, the job of your real estate agent is to come up with other interesting ways to make the negotiation work for their clients. For example:
Payment terms are paramount to the negotiation process. If the cost itself cannot be changed, then the way in which you pay for your new home is very important to discuss; giving away your money comes at a cost, so establishing a payment structure that works in your benefit is crucial.
Sometimes this can come in the form of smaller payments being made over 6-12 months, with a large sum of the money being held until just before the keys are handed over. Other times, this can look like paying 20% at signing instead of 40%.
Your real estate agent should be skilled in assisting their clients and finding a balance that enables both sides to come to an agreement.
Finishes and Furniture
This is the time to discuss the finishes and furniture that are in the home.
The unit might have gorgeous light fixtures, air conditioning units, custom carpentry, or even beautiful pieces of furniture that the owner plans on selling or taking with them to their next home.
Your real estate agent should discuss these factors with the seller and negotiate on your behalf to have them included in the deal or for an additional (reasonable) cost.
As a representative of the buyer, it is your agent’s job to find every aspect of the deal that can be taken advantage of.
Sometimes a client falls in love with a home whose seller wants to move quickly but the buyer doesn’t plan on moving for another 8-12 months. In this case, in order to not lose a great property, a rental deal can be negotiated on the clients’ behalf as a means of making back some money on the property while it is not yet in use.
Alternatively, flexibility in the move-in date can work well in a negotiation if the owner wants to sell but hasn’t yet found a new home or wants to take their time moving out, etcetera.
Moreover, all-cash offers, if feasible on the clients’ end, can be an excellent bargaining tool as they are very attractive to sellers; the purchase price could potentially be lowered for a buyer who will pay fully in cash.
Looking for a Middle Ground that can Appease Both Sides
The art of negotiation is in essence the combination of a real estate agent’s understanding of the market, knowledge of their client’s needs, ability to communicate with the seller and understand what their position is, and find a middle ground that can appease both parties.
Your agent should be able to think quickly on their feet and come up with creative solutions while still remaining realistic and making it worthwhile for the seller, knowing that the seller does in fact have other options.
The agents at CapitIL Real Estate in Jerusalem pride themselves on their ability to understand and represent their clients’ needs, communicate efficiently with sellers, and maintain excellent knowledge of the market.
Contact us today to begin your property search!