After almost 25 years in property we have learned some important lessons….Thought to share our property negotiating lessons learned…I think my wife and I have become a decent negotiators. We have come across “tough” negotiators all the time who focus on winning or squeezing out the last drop of blood, and personally, we don’t want to do business with them going forward. The best way is win win…No your bottom line price…stick with it. Vendors do not have to accept your numbers but there are ways of convincing them such as length of time in property, number of deals completed as well as buying for cash without a mortgage ( refinancing later) etc. Our goal is that we want to build long-term relationships that will make us successful for many years to come. we want to win the war, not squeeze out a few thousand bucks on deal that may jeopardise future opportunities. Everything is long term thinking and building relationships. We strive to get many property deals every year for many years to come.
Reputations can be an incredible asset or a huge detriment to our success. Do what you say….keep your word…communicate…
There are many property investors who make offers on houses knowing they may not go through with the deal or they are going to ask for a huge concession form the seller during the inspection. They want to get their offer accepted and then bully the seller into lowering the price. In our case of social housing HMOs every property must be approved by the police….council as well as provider and some of our competitors for property throw in postal codes with the hope of having them accepted and then go looking for the money to purchase. This is very bad business and the social hmo providers have learnt who these bad apples are and shun them to some degree. Time wasters are no ones friends…
When we negotiate and put in offers… we don’t give in to everything the vendor wants or pay more than I want to, but we always negotiate in good faith with our first offer. We don’t plan on asking for anything in the inspection; in fact, 90 percent of the time, we waive my inspection. Our offers are not always accepted, but we make it clear that if our offer is accepted I will close. We will not play games, and it will be the easiest transaction that estate agent has had plus for the vendor.
If we do not come to terms with the vendor we always put in a best and final offer. We do not change this…
Let us know what you think!
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