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San Patrik real estate How to negotiate successfully and lower the price of a property?

How to negotiate successfully and lower the price of a property?

January 3, 2023

Svakom kupcu je u interesu spustiti cijenu nekretnine koju želi, no s druge strane stola je prodavatelj koji će učiniti sve da se to ne dogodi. Pregovarati oko cijene stana ili kuće je sasvim normalna stvar, dio tradicije, mentaliteta i procesa kupoprodaje. No, kako pritom izbjeći jeftino cjenkanje i uspješno sniziti cijenu nekretnine – to je umijeće.

Ako ne ostvare neki popust ljudi nemaju osjećaj da su dobro trgovali, tako je i s nekretninama. Običaji cjenkanja na hrvatskom tržištu negdje su u sredini, između Turske gdje cijena nečega što košta 100 završi na 20 i Njemačke gdje se podrazumijeva i drži početna cijena. Das Cijena! Mi smo negdje između ta dva mentaliteta, slikovito objašnjava Ivan Varat, savjetnik za nekretnine.

Kako pregovarati kad je potražnja veća od ponude?

When there are more buyers than available properties, the real estate market is said to be in a seller’s market. In such cases, multiple buyers may be interested in a single property, giving sellers an advantage in negotiations. Many properties in this situation are sold at the initially advertised price, but you have nothing to lose by engaging in negotiations and trying to find a way to lower the price of the property.

As a general rule, every seller is willing to negotiate the initial price, and the extent of the negotiation depends on the buyer’s or their real estate agent’s negotiating skills. You need to have strong arguments to successfully lower the asking price of a property.

Requested and realized property prices

Every seller is interested in selling their property as well as possible, and when demand exceeds supply, it becomes easier for them to achieve their goals. It’s worth noting that the price is often a subjective opinion of the owner about the value of the property, and there’s no reason why a buyer shouldn’t attempt to negotiate. At the beginning of the property listing, sellers set a higher asking price. Last year, the difference between the asking price and the realized price was about ten percent, and now it’s approaching twelve percent, according to the president of the Real Estate Business Association at the Croatian Chamber of Commerce. In practice, various situations are possible, ranging from zero to ten percent, says real estate advisor Ivan Varat. However, if the property is of high quality and without flaws, the most common scenario is when owners are willing to compromise and lower the price by two to four percent.

Whether you negotiate on your own or with the help of an agency, it’s good to have some tips that can assist you in responsibly, smartly, and swiftly reaching a compromise price. At the beginning of your search, limit yourself and determine the maximum price you are willing to pay for the property. When you have a realistically set financial framework, you can approach the seller honestly. Give yourself time, spend as much time as possible talking to the owner of the property, ask questions, and examine everything that interests you. Highlight the good aspects of the property, express why you like it. Owners are subjective, and usually, they care about who will live in the apartment after them. Once you have emphasized the advantages, it’s time to address the flaws. Politely mention what you have noticed as the shortcomings of the apartment. Then, based on everything said, both positive and negative, it’s time to ask the owner for their lowest price. After receiving that information and knowing your maximum budget, you can offer your own price. Let’s not deceive ourselves, negotiations are not easy. Just like the entire process of buying and selling a property. Most of us buy a property once or twice in a lifetime, and for this step, you need to arm yourself with financial advice as well as some basic knowledge of psychology. Negotiations are one of the trickiest moments, and they require time, patience, and mutual respect. Author: Ivana Alfier, Stanarica.hr.

A real estate agent establishes a longer-term advisory relationship with the seller, almost a friendly one. This gives them credibility when broaching sensitive topics such as price. Building trust takes time, and when a buyer negotiates on their own, they only spend about fifteen minutes with the seller. That simply isn’t enough time. Ivan Varat, San Patrik Real Estate.
pexels pixabay 276554

The Simplest Tips for Successful Negotiations

Whether you negotiate on your own or with the help of an agency, it’s good to have some tips that can assist you in responsibly, smartly, and swiftly reaching a compromise price. At the beginning of your search, limit yourself and determine the maximum price you are willing to pay for the property. When you have a realistically set financial framework, you can approach the seller honestly. Give yourself time, spend as much time as possible talking to the owner of the property, ask questions, and examine everything that interests you. Highlight the good aspects of the property, express why you like it. Owners are subjective, and usually, they care about who will live in the apartment after them. Once you have emphasized the advantages, it’s time to address the flaws. Politely mention what you have noticed as the shortcomings of the apartment. Then, based on everything said, both positive and negative, it’s time to ask the owner for their lowest price. After receiving that information and knowing your maximum budget, you can offer your own price. Let’s not deceive ourselves, negotiations are not easy. Just like the entire process of buying and selling a property. Most of us buy a property once or twice in a lifetime, and for this step, you need to arm yourself with financial advice as well as some basic knowledge of psychology. Negotiations are one of the trickiest moments, and they require time, patience, and mutual respect. Author: Ivana Alfier, Stanarica.hr.

There is less demand for houses on the market, which increases the possibility of negotiating the final price because house owners receive fewer offers than apartment owners. This automatically gives us more room for negotiations. Ivan Varat, San Patrik Real Estate

Arguments for negotiating the price of a house can be found in the energy class. The insulation on the roof, a good roof, thermal insulation, windows and doors—all these elements through which a lot of energy is lost—are checked. If a house has a lower energy class, negotiations can be conducted for a lower price. Installations, water pressure, mobile phone signal, or even an undesirable neighbor—all these factors can be arguments for a discount compared to the asking price.

How to successfully lower the price of a property?

If you have found a property you like, don’t avoid bargaining. The difference between the asking price and the negotiated price can be used to further equip the apartment. Every buyer is looking for ways to lower the price of the property as much as possible, and the seller will be willing to make concessions as long as the negotiations are smart and respectful. In that delicate moment, old tricks like listing the flaws of the property and then presenting your lowest price won’t always help, explains the real estate advisor. According to Varat, that is the wrong approach because you offend the owner twice—first with the flaws and then with the lower price. Often, the seller will say, “You know what, I don’t even want to sell you the apartment!” In a negotiation situation, a real estate agent is a welcome mediator who understands the buyers’ possibilities and the sellers’ desires. With their communication and negotiation skills, they can reconcile two opposing interests.

A real estate agent establishes a longer-term advisory relationship with the seller, almost a friendly one. This gives them credibility when broaching sensitive topics such as price. Building trust takes time, and when a buyer negotiates on their own, they only spend about fifteen minutes with the seller. That simply isn’t enough time. Ivan Varat, San Patrik Real Estate.
pexels pixabay 276554

The Simplest Tips for Successful Negotiations

Whether you negotiate on your own or with the help of an agency, it’s good to have some tips that can assist you in responsibly, smartly, and swiftly reaching a compromise price. At the beginning of your search, limit yourself and determine the maximum price you are willing to pay for the property. When you have a realistically set financial framework, you can approach the seller honestly. Give yourself time, spend as much time as possible talking to the owner of the property, ask questions, and examine everything that interests you. Highlight the good aspects of the property, express why you like it. Owners are subjective, and usually, they care about who will live in the apartment after them. Once you have emphasized the advantages, it’s time to address the flaws. Politely mention what you have noticed as the shortcomings of the apartment. Then, based on everything said, both positive and negative, it’s time to ask the owner for their lowest price. After receiving that information and knowing your maximum budget, you can offer your own price. Let’s not deceive ourselves, negotiations are not easy. Just like the entire process of buying and selling a property. Most of us buy a property once or twice in a lifetime, and for this step, you need to arm yourself with financial advice as well as some basic knowledge of psychology. Negotiations are one of the trickiest moments, and they require time, patience, and mutual respect. Author: Ivana Alfier, Stanarica.hr.

When assessing the value of a property, two prices are usually considered: the advertised price and the realistic price that the seller wants to achieve. Owners are prepared to lower the price, as they are aware that buyers expect a discount. Ivan Varat, San Patrik Real Estate.
pexels vecislavas popa 1571460

The Best Buyer Arguments in Negotiations

When structuring their finances, buyers gather as much cash as possible to use as a down payment or to pay the entire purchase price. Their goal is to quickly entice the seller of the desired property. Last year, real estate worth over 60 billion kuna was sold, with half of it paid in cash. Cash is undoubtedly the most compelling argument for buyers in negotiations. When it comes to loans, negotiating skills are required because loan approval and disbursement can take months. If you plan to apply for the APN tender, the seller will have to wait even longer. However, in either case, you should not give up. Seller needs vary, and they need to be cleverly detected. For some, waiting several months for payment is not a disadvantage but an advantage because they want to sell during high demand but haven’t found a replacement property. So, if you casually ask the seller why they are selling the property and where they are moving, you might receive an answer that gives you an argument for negotiations.

What are the criteria for negotiating the price of a house?

Houses are sold much less frequently than apartments, at least in the case of Zagreb. Statistics show that houses account for only about 15 percent of the total property sales in Zagreb.

There is less demand for houses on the market, which increases the possibility of negotiating the final price because house owners receive fewer offers than apartment owners. This automatically gives us more room for negotiations. Ivan Varat, San Patrik Real Estate

Arguments for negotiating the price of a house can be found in the energy class. The insulation on the roof, a good roof, thermal insulation, windows and doors—all these elements through which a lot of energy is lost—are checked. If a house has a lower energy class, negotiations can be conducted for a lower price. Installations, water pressure, mobile phone signal, or even an undesirable neighbor—all these factors can be arguments for a discount compared to the asking price.

How to successfully lower the price of a property?

If you have found a property you like, don’t avoid bargaining. The difference between the asking price and the negotiated price can be used to further equip the apartment. Every buyer is looking for ways to lower the price of the property as much as possible, and the seller will be willing to make concessions as long as the negotiations are smart and respectful. In that delicate moment, old tricks like listing the flaws of the property and then presenting your lowest price won’t always help, explains the real estate advisor. According to Varat, that is the wrong approach because you offend the owner twice—first with the flaws and then with the lower price. Often, the seller will say, “You know what, I don’t even want to sell you the apartment!” In a negotiation situation, a real estate agent is a welcome mediator who understands the buyers’ possibilities and the sellers’ desires. With their communication and negotiation skills, they can reconcile two opposing interests.

A real estate agent establishes a longer-term advisory relationship with the seller, almost a friendly one. This gives them credibility when broaching sensitive topics such as price. Building trust takes time, and when a buyer negotiates on their own, they only spend about fifteen minutes with the seller. That simply isn’t enough time. Ivan Varat, San Patrik Real Estate.
pexels pixabay 276554

The Simplest Tips for Successful Negotiations

Whether you negotiate on your own or with the help of an agency, it’s good to have some tips that can assist you in responsibly, smartly, and swiftly reaching a compromise price. At the beginning of your search, limit yourself and determine the maximum price you are willing to pay for the property. When you have a realistically set financial framework, you can approach the seller honestly. Give yourself time, spend as much time as possible talking to the owner of the property, ask questions, and examine everything that interests you. Highlight the good aspects of the property, express why you like it. Owners are subjective, and usually, they care about who will live in the apartment after them. Once you have emphasized the advantages, it’s time to address the flaws. Politely mention what you have noticed as the shortcomings of the apartment. Then, based on everything said, both positive and negative, it’s time to ask the owner for their lowest price. After receiving that information and knowing your maximum budget, you can offer your own price. Let’s not deceive ourselves, negotiations are not easy. Just like the entire process of buying and selling a property. Most of us buy a property once or twice in a lifetime, and for this step, you need to arm yourself with financial advice as well as some basic knowledge of psychology. Negotiations are one of the trickiest moments, and they require time, patience, and mutual respect. Author: Ivana Alfier, Stanarica.hr.

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