Beginner-Friendly Real Estate Negotiation Tips for New Sellers
Selling and buying properties can be a fulfilling and profitable experience. But as many great real estate professionals will tell you, it takes a lot of work and effort to sell any property, whether a house and lot or a simple condominium.
So, if you’re a first-time salesperson or an ordinary joe looking to sell their house so you can buy a new one, here are some top real estate negotiation tips you need to practice.
1. Know the worth of your property
Before you get excited and announce to the entire neighborhood that your house and lot is for sale, make sure you know how much it’s worth first.
You may think that you can decide on any price you want, but according to the law, real estate pricing should follow the Philippine Valuation Standards, which bases a property’s worth on current market value.
If you’re not an appraiser by trade, we recommend you talk to a professional real estate appraiser because there are many possible approaches to calculating your property’s worth.
Take a house and lot, for example; appraisers usually first determine the land value of the property based on the location and then determine the value of the home and its improvements before adding both factors. Another way to calculate a house and lot’s worth is by comparing the actual and live prices of other properties around the area.
For condominiums and apartments, appraisers even go as far as calculating the possible income a potential buyer can get out of this property, increasing its value.
Knowing your property’s worth is a long conversation and will require some expert advice. Some real estate professionals even take 4-year degrees to do this! It may seem like a hassle, but the last thing you want to do is go into a negotiation and sell yourself and your property short.
2. Understand your property’s advantages by heart
Now that you know your property’s estimated worth, it’s time to convince your buyers that it deserves that price. How do you do that? You have to understand and, if possible, memorize the advantages of your property.
Let’s say you’re selling a condominium in the bustling city of Makati. You may have a lot of competition on your hands. If that’s the case, it’s good to ask yourself some of the following questions:
- What can I highlight about my condominium that can become a good selling point?
- Is my condominium already fully-furnished? Does it have helpful furniture already installed, like built-in shelves or kitchen cabinets?
- What are some of my condominium’s amenities that future buyers can use? Does the building have a gym? or a pool? Even a cleaning service?
- How about the condominium unit itself? Is it a 1-bedroom unit with a big window and even a balcony? Or is it a spacious unit with an open living room and a good-sized kitchen?
These are just some questions that can get you to understand your property’s benefits. Make sure that when you answer these questions, you’re also researching properties near the area and taking note of what you have that they don’t.
Buyers have a lot of power in this day and age because, like you, they’re doing their research. They know that another condominium is up for grabs across the street, and they can quickly go there if they’re unsatisfied with you.
If you want to win the negotiation, researching your property’s advantages compared to others around the area is a must.
3. Location is everything
It’s true what they say: in real estate, location is pretty much everything. And this is a great card to play when you’re negotiating. Properties can sell twice as much just by being at the right location and time. As salespeople, you need to take advantage of this.
Say you’re selling a house in Ayala Alabang. This location is easily one of the most sought-after places in Metro Manila because it is home to popular business and commercial establishments that your buyer can enjoy in the future. It also has schools, churches, and parks, which are must-haves for buyers with families. Knowing what’s happening in your area’s location can give you an upper hand during a negotiation.
But what if you only have pre-selling properties and sell in an underdeveloped area? You still need to stay updated on the area’s news.
Knowing what potential real estate plans will happen in that location in the next few years is essential. Will a highway be built there next year? Maybe a major mall or even a hospital. All these future plans will add value to your property and will add value to your buyer’s purchase.
4. Get to know your buyer
If you don’t take the time to get to know your buyer, all the prep you did for the negotiation won’t work.
Winning a negotiation, at its core, means you managed to convince your buyer that you’re the seller that can fulfill their needs. But you can’t satisfy any need if you don’t know what need your buyer has in the first place.
So, it’s crucial you get to know your customers beyond the usual buyer information, like when they plan to move in or what’s their starting price. Here are some meaningful questions to ask your buyers:
- Why do you plan to buy a house and lot?
- What attracted you to this area?
- How was your house-hunting experience so far?
All these questions will give you an idea of what your buyer likes, dislikes, and how you can strategize your negotiation.
For example, if your buyer tells you that they’re planning to buy a condominium in Eastwood because that’s where they work, you can highlight the different roads they can take during their drive or you can mention a list of accessible public commutes they can use.
If your buyer was a young couple looking to start their new life, you could recommend a 1-bedroom condominium as their starter place.
You wouldn’t be able to say any of these personal recommendations if you didn’t genuinely get to know your buyer first. So, don’t just be a seller, be a guide, and above all, a friend.
Preparing for the Long Haul
Real estate negotiations are challenging and may take a long time, which isn’t surprising since buying a property isn’t the same as buying a pair of shoes. You must prepare for a long process and a lot of back and forth.
A positive mindset and a network of support you can turn to when things get tough can help ease the burden.
You also must remember that negotiations won’t always go as you want them to. But knowing your property’s worth and your customer’s needs will help you go into every negotiation with confidence, and sometimes confidence is the best starting point.
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