This year is seen to be a continuation of the buyer’s market. Thus, if you see yourself buying an asset in the coming months, then you must expect to be getting great deals. But will it happen? Can you truly get a lowball offer in any of your dream properties in New York?
Here are some of the factors that you have to consider so that you can get your dream property at a low price:
When you know how to negotiate well, then you will most likely get a deal that you want. Negotiating is never about showing that you are superior when it comes to understanding and knowledge. Negotiating is about putting forward your goal by reaching a common ground.
When looking to buy a particular property of your choice and the seller seems to have set the price at an extremely higher rate than you would prefer, you could approach him by offering a lower bid price. But never set the bid price to your maximum. Make it lower than what you can afford because it shall only serve as a foundation for the bid. As you make the bid, respectfully tell the seller that such bid shall only serve as a starting point for your negotiations until you reach a price that you can both agree on.
- Use Cash
Buying real estate using cash can put you in so much advantage. However, you shall not raise your expectations so high when dealing with cash. There are still other factors to take into consideration to make your purchase successful.
If you are considering getting into co-op, then you will need to show evidence or supporting documents that you have indeed a stable job or a secure source of income. Co-op boards look into the financial background of buyers to make sure that you can be answerable for at least two years of liquidity after closing.
If you are planning to buy a condominium unit, then you could be better off with cash but with still a stable job. Although sellers make faster deals with cash, they are also concerned about your financial integrity so make sure that you have good debt history.
- Prepare all Requirements
Some real estate sales are time-sensitive. Most sellers would prefer to deal with people who can make a successful purchase without delay since asset liquidity is their main concern. Creating good impressions can also intensify your chance to close a beneficial deal for you and the seller.
So, what shall you do in order to make such a good impression as a property buyer?
First, make sure that you have a complete list of contacts and identified professionals who will guide you through the purchase. Among the personalities that you need to identify are your real estate lawyer, your broker, and your bank officer.
Second, it would really help if you have prepared a bid letter that contains details about your offer such as the price and mode of payment. By giving the letter, then you could steer the negotiation in a positive direction.
- Know the Property’s Value
Your offer shall be dependent on the value of the property that you are wanting to buy, the length of time that the listing has been present, and the quality of other offers made on the property.
If you are buying a condo, you have to take note that these properties are usually priced high due to optimistic views regarding its investment quality. However, with recent developments, we could safely make offers that are around 15% lower than the detailed price.
If you are looking at other properties such as apartments, co-ops, or single homes, then you could also check their listing history. How long has it been in the market? Those that have been listed only lately have fewer flexible prices while those that have long been waiting for a buyer could most likely be negotiated.
Take advantage of the current real estate situation to finally have your own property. Do not forget about these strategies to successfully get a good deal.