Negotiating Tips For Luxury Buyers
Whether you’re a first-time home buyer or have gone through the process a few times over, it’s never as simple as we all hope. A successful real estate transaction experience requires planning and attention to detail. This is especially true when it comes to negotiating the best deal on a luxury property.
Both sides are looking to get the most out of the transaction. Buyers are not only looking for a good price but also working towards obtaining such inclusions as high-end add-ons and other amenities to make the deal even more enticing, while sellers are simply looking to pocket a substantial profit with the least amount of effort. It’s all part of the real estate game.
For home buyers looking to invest in luxury properties, these negotiations can get even more complicated, as both sides come to the table with high expectations and a stubborn refusal to concede to the other. Emotions run high, and the terms are complex. However, there are certain things that you can do to help mitigate these roadblocks and set expectations that will keep you grounded and focused on closing the deal on your future dream home. After all, the goal is simple. You want to pay a fair price and close as quickly, and as smoothly as possible.
Negotiation is all about confidence and creativity. So, let’s take a look at some negotiating tips luxury home buyers can employ to ensure a deal is not only successful but comes out in your favor:
- Do your due diligence – When buying a luxury property, preparation is key. You want to research everything from the home itself to the community it resides in. Find out how much the property originally sold for, what comparable properties in the area sold for, what renovations have been made, what amenities have been added, how long it’s been on the market, how many showings it’s had, what’s motivating the seller, etc. Every little detail can help increase your negotiating power. If, for instance, you’re able to find out that the seller is looking to make quick cash, they might actually consider accepting a lower offer. It’s all about what you know.
- Know the conditions of the market – Negotiation tactics are based on the market and so will vary from one location to another and from one moment in time to the next. In luxury communities, inventory can often be tight, so it can work in your favor to strip as many contingencies out of your offer as possible, like add-ons, in order to come to a deal. Sellers of luxury properties are often already aware of market conditions and have a strict parting price in mind. But, this doesn’t mean that you should simply settle. In fact, you can and should make certain variables dependent upon a thorough home inspection. Once all secrets are revealed through the inspection, the seller may be more willing to negotiate certain concessions.
- Work with an agent – Buyers should always work with an agent, especially when purchasing a high-end property. An exclusive buyer’s agent gives you their undivided loyalty. Their mission is to ensure that you get the best deal possible. They work to represent you and will essentially protect you from yourself. For example, buyers often reveal all of their cards before they’ve even made it all the way through the front door assuming that this assertiveness will intimidate the seller. But, this move really just means that you’re giving up your negotiating power right off the bat. Your agent, however, knows how to navigate the conversation. They know what questions to ask, how to pace them, and when to speak in turn to get the information they need to help negotiate and secure a great deal for you.
Negotiating a fair deal on a luxury home is all about taking the time to prepare before you make your first move, making smart, tactful plays, and seeking the help of seasoned professionals who can help you navigate the process by pulling back the curtain. If you take this advice to heart, you’ll soon be negotiating your way into your new dream home in no time.