Buying Or Selling, You Must Structure the Offer for Acceptance

1>    It doesn’t matter if you are direct property buyer/seller or an agent, you must know how to structure the ‘Offer’ for acceptance. A good buyer’s agent should always coach their clients about the best ways to position themselves and their offer to increase the likelihood of the Seller’s acceptance. This is true even in a strong buyer’s market; because if you want to pay the lowest price for piece of property, you then have to be sure that all the other components to your offer, other than price, are as attractive as possible.

2>    Basic Homework You Must Do –
a> On what condition loan-approval could be seeked from a reputable lender/bank.
b> Conduct a qualified inspection of the property – it helps you to figure out what is something that instantly draws your attention (positive/negative) & be prepared to answer it.
c> Do some basic maths – find out what would be approximate total value of the deal, registration charges, cost of other agreements that may need to be executed as need may be & other deal settlement charges you will incur to see the deal through – remember estimates should always be within a margin 10% & not too overtly exaggerated.
d> While you do all the above – you must keep an eye on contingencies like interest changes in the market due to changes in CRR, Repo rates by RBI. Interest rate charges though may seem too small as a number, it will have an increased impact especially if your loan term is longer.
e> If you already have FD’s or other term deposits which you may have to revoke before maturity –  Make sure to do a simple opportunity cost analysis. For Ex –  Compare between – how much assured interest you may stand to loose if you revoked your FD one year prior to maturity & what is expected rate at which your real estate may grow during that one year. Take an informed decision, if its worth to postpone your buying decision by one year if – assured interest on your deposit is much higher.
f> Make a comparative analysis of the property- cost prevailing in the area, hypothetical analysis of possible developments in the area which could bear impact on real estate & encourage buying spectrum.
g> Attention to detail in the offer.
h> Timeframe for close the deal.
i>  Professionalism is utmost important be it buyer/seller.

3>    Remember that while price is very important to the Seller, so are other aspects of the deal. The Seller only wants to go through the deal process ONE TIME, so if all the components of your offer must say “I can CLOSE”, your lower-price offer may be preferable to a higher offer that says “I am not so sure this is the right house and I may be a pain and NOT close the deal”.

Negotiating a Real Estate Deal
Art of Negotiating A Real Estate Deal
Structuring a Real Estate Offer
Tools for Negotiating a Real Estate Deal
Personal Communication When Buying Real Estate
Unwanted Emotions While Negotiating A Real Estate Deal
Low Price War in Real Estate
Negotiate With Data in Real Estate
Use Proper Timing To Negotiate Real Estate Deals
Ask Inappropriate Questions While Negotiating A Real Estate Deal
Making a Counter Offer While Negotiating Real Estate Deal
Incentives Can be Offered by Buyers or Sellers

Strategic Buyers Guide in Real Estate
Strategically Sealing A Real Estate Deal