How to Negotiate When Buying a House?
Psychological and logical strategies of how to negotiate when buying a house. Take over the control on closing a deal buying new property.
Such deals with real estate as buying a house require from the buyer being very reserved, tactful and persistent when learning how to negotiate.
It’s the negotiation when buying a house that defines the future relation between the parties – a seller of a house, a buyer and a real estate broker.
Communicating with one another everyone will define for himself the possibilities of the deal and will try to “hog the blanket” thinking how to increase his own benefit.
So, how to negotiate when buying a house, so that everything went well.
How to negotiate when buying a house and what to discuss in the first turn?
A seller and a customer must negotiate and reveal the positions of the parties towards the main provisions of the deal that concern buying a house, and come to the one and only decision about all of them:
The price of a house and the bargaining on it
The question about the price is very significant but it does not really take much time.
The customer offers the seller to lower the price and says why he wants it and the person who sells a house either agrees to it or takes time to think about it.
Real estate brokers aim to take the function of the mediator in this question, but they cannot make the decision itself.
In this case you should convince both the broker and the seller, because only a seller makes this decision.
The system of payment for buying a house
There may be the following options discussed: the money is given to the salesman at once after signing the contract or after the registration of real estate title; and using the bank account, bill of credit or wire transfer, partially or the whole sum at once.
Buying a house is a risky deal from the customer’s point of view, that’s why the offer to pay the salesman before filing the deal should be treated like a signal to increase your alertness, because the possibility of facing a fraud in such cases is higher than paying on the actual basis.
The date of signing the deal
It’s very important to negotiate and decide when you will sign the deal and file the documents on the state registration.
As a rule, the date is determined by the necessity to order or get some documents for the official registration from both parties.
The reason to return the bid security for a house
Parties cannot simply refuse from the deal after they gave the front money, because they are bound by the security, which every party loses in case they deny having a deal without any serious reason.
Filing a warranty bill of sale
The warranty bill of sale can be put in a separate safety deposit box or filed when receiving money from the safety deposit box.
However, it’s hard to suppose how to act, if the seller took the money and did not give the warranty bill of sale.
That’s why you should put this bill in the safety deposit box beforehand or buy house cash free.
If a deal is alternative, every question mentioned above is discussed together with all participants.
If a bank gives the money, you must consider the bank’s point of view on the deal when you negotiate.
Besides, there may be other significant questions.
How to negotiate when buying a house: psychological strategies of persuasion
The customer’s goal of negotiation when buying a house is not only to avoid persuasion, but also to convince the seller to accept his conditions.
Consequently, knowing the solutions, which would show how to satisfy both parties, one can expect the seller’s agreement, even if primarily he stood his ground and insisted on another decision.
However, if there is no mutual benefit and common decision, wins the one, who knows how to convince and how to build his arguments when you negotiate.
Let’s look at the following rules of how to persuade the opponent:
- You should not use weak arguments: they are more harmful than helpful, if only the buyer cannot bring even the worst options in the brightest light in every situation.
There is a principle in psychology: if the interlocutor responds to your questions positively twice, there is a great possibility he’ll answer positively to the third question as well, because being relaxed he is inclined to negotiate and give positive answers.
Consequently, you should ask two short and easy questions, the answers to which will definitely be good and only then you can ask the questions you are interested in.
- The power of persuasion depends on the status and authority of the speaker: for instance, if the buyer occupies a high post, has a representative species and confident voice, people will unwillingly listen out for such person.
Do not diminish the opponent’s status and never criticize him personally: an opponent may “close himself” and focus on the critics in response to yours.
You should show fidelity to your principles towards the discussed conditions, but you should always show how much you respect the seller’s personality and his representative.
A nice interlocutor stimulates the production of dopamine and unwillingness to confront.
An unpleasant interlocutor stimulates the contrary feelings.
When we negotiate, we tend to treat the arguments of the pleasant interlocutor indulgently, but we treat with prejudice the arguments of the person we don’t like.
A nice impression, as it is well-known, is created by many conditions: appearance, respectful relation, well-bred speech, pleasant manners.
- If you want to learn how to persuade when negotiating, you should start not with the contradictions and details which differ, but with the things, with which the interlocutor will agree.
Always place yourself in the seller’s shoes and estimate the situation and your arguments from his point of view.
Think how you would act, if you were him.
- Never use conflictogenics – words, actions (or inaction), which can lead to a conflict.
- Using your argument you should mention which seller’s need the offered condition is going to satisfy.
- Tell the truth – they say honesty is the best policy.
Be honest with yourself – think who needs the deal more.
For example, situation 1: you, who have money, or the seller, who cannot sell a house for more than half a year?
Situation 2: the salesman who has a queue of the buyers and the price is growing day by day, or the customer, who insists on the unsustainable conditions?
Depending on it or creating the vision of it, the style of how to negotiate is built.
Even if the salesman convinces you he has plenty of customers, but the fact that he is present at the last stage of the negotiations shows how interested in the deal he really is.
Be friendly, and stay positive: negotiations about the purchase of a house must not bring feud and conflicts.
On the contrary, a customer must buy a comfortable house, and a salesman must get the wanted sum of money.
There should not be any contradictions on this account and you must negotiate till you have a solution, which will turn to be successful for everyone.
How to negotiate when buying a house: logical strategies of persuasion
Persuasion is done only by the arguments.
Argumentation is a logical and communicative process, which is targeted at the rationalization of the point of view of one person for the other person to understand and accept it.
For the successful persuasion when buying a house a person needs to negotiate the key topics, have the personal opinion on the acceptable conditions of the deal, know the counter-arguments of a salesperson, and know how to analyze and make decisions.
Quite a lot of things depend on the interlocutor – whether he is going to accept your arguments or not when you negotiate.
Actually many people falsely forget this detail, which turns out to be the most defining one – you must think over what your interlocutor is like, what he is going to say and why, but not only care what you are going to say.
Otherwise, when you negotiate, you’ll face the straight “no” at the very beginning.
The customer may be so surprised that he’ll forget everything he wanted to say and start acting unreasonable, beginning to improvise, which is very risky at this point.
Every customer has two the most topical conditions to defend – concerning the payment and deregistration of the tenants.
We’ll vividly demonstrate these arguments to defend the seller’s acceptance of these conditions.
A house first, a payment later
A salesman must receive the money for a house only after the customer’s registration of title to real property.
Otherwise, the customer risks getting a refusal in registration of title to real property and losing his money for good.
This risk is an understandable argument to assist in accepting the mutually beneficial scheme – to put money in a safety deposit box with the condition of access in exchange on the signed agreement of sale and purchase.
An additional argument for a salesman may be the impossibility for the buyer to get his money back in case the state registration will be carried out in the planned order.
Motivation to dispossession
It is desirable that all people who live there leave the house before the agreement of sale and purchase was signed.
It is the perfect situation, which is acceptable for a salesperson in any case, except the “alternative”, when he buys another house and checks in there.
An argument to persuade the seller when you negotiate may be the fact that not all people, who live there are present at signing the deal and sign the contract.
Consequently, there is a risk they’d refuse to evict from a house and you’ll have to do it through the court.
Another good argument will be based on the facts, norms or law or any other objective information, which is shared with the participants when you negotiate.
That’s why getting ready with the list of arguments a buyer should think over the following arguments:
- A seller would prefer to sell his house not to a criminal suspicious element, but to a trustworthy client, which is not very easy to find.
- No one wants to go to the court and it’s better to eliminate such situation at all by preparing the deal on the equal (mirror) and balanced conditions.
Everyone may get up and walk away any moment.
You gathered voluntarily to have a constructive discussion of the conditions: if there is no mutual understanding, there is no sense discussing anything.
- It’s supposed to be natural and fair to protect the interests of a seller and a customer equally.
- If a party declares to do something for sure, such as free the house within a week, it’s weird if you cannot write it in the contract.
- An argument, that everybody does it, is not an argument.
- Bargaining is always appropriate and it’s not a seller’s favor.
When buying a house you need two significant components to negotiate successfully – knowledge and persuasiveness.
How to negotiate when buying a house?
Protecting your own interests is the elementary, shared and understood argument to build the negotiations with the client.
Buying a house with the maximum benefit and safety for yourself is the customer’s aim.
First of all, a customer must know what he is interested in and which seller’s interested it invades and then he goes off of it.
We wish you luck when making a deal!
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