Property Investment Tips: 3 tips to maintain the upper hand in private negotiations

By the resi financial blog team, 03 November 2014

Property Investment Tips: 3 tips to maintain the upper hand in private negotiations

Auctions are a scary prospect for first time home buyers and investors alike, and it can be hard to keep a level head when the hands start flying up. Many investors prefer private sales to auctions, and for many reasons.

Aside from taking the hot-headedness out of auctions (which is what makes them work for sellers), private sellers are often in a position where they realise their need to negotiate. However, if being a hard-nosed investor seems like too much when negotiating for someone's biggest asset, here are some tips to take the pressure off.

1) Have a set of questions ready to ask the agent or vendor

Buying an investment property can be a heady decision, and you have to try and remove the emotional influence that you would normally experience when buying your own home. Walking through an open inspection, it can be easy to get distracted by the beautiful hardwood floors, when really you should be asking about rental vacancy rates in the area.

Having a list of questions prepared means that you not only find out what you need to know about a specific property, but you can start to compile a significant amount of data on homes and real estate agents in the area you are looking in. This could prove invaluable when reaching your final decision.

2) Be prepared to low ball

Going in with a high offer will get a property quickly, but could cost you a lot of money. Rather, spend time making a lot of low offers until the right one comes along. This can work better than speeding up the process with big offers, and  spending too much in the process.

3) Find out the seller's situation

Oftentimes. knowing a person's true motivation will reveal weak spots in their armour. Ask the real estate agent questions about what the property was used for, why it is being sold, etc. With this kind of information you can quickly learn how important the speed of a deal or the final price might be to the vendor. If they really need to move on, offering a quick settlement might make your offer more attractive, without increasing price.

Whatever your investment strategy, there are finance options to suit your needs. To find out what you can afford, and to get a great deal on a mortgage, talk to a resi loan specialist today.

Categories: Home Loans, Property Investment