When you are going to by an investment property, it means you will have to deal with the selling agent. However, you also must have known that the price they are quoting is less than what the owner stated. Of course it is not illegal because the selling agent will be paid when the sale is made. Buying an investment property is like playing a game. You need the right strategy to win. In this case, you want to buy the property at the lowest price. Meanwhile, the selling agent also need higher price than what the owner is willing to take because that’s how they can receive their payment. The negotiation process is where you need to be prepared to make the best deal.
Deciding the right price when buying property
Buying a property is not as simple as buying candy in a store. It takes time especially in the negotiation process since both the seller and buyer want to get the best deal. If you are going to buy an investment property, you need to know more about the pricing beforehand. Thus, you will be more prepared. Here are some tips about pricing in buying an investment property:
- First thing first, do your research especially if you are going to do it on your own not hiring a buyer’s agent. Your research will help you to buy a property that is worth your money. What you need to research is the market price. Try to search similar homes with the one you are going to look at. Thus, you will know the fair idea of the price. You also needs to know more about the asking price and the sale price. The one that you should focus on during negotiation is the sale price. Meanwhile the asking price is usually used as starting point for negotiation.
- Another important thing about pricing when it comes to buying an investment property is the valuation. It is important because it is what determines the market value. The strategy you can use regarding to the valuation is to do it prior negotiation. Of course, this is not the most idea strategy since not all seller accept this condition. This may take longer time three or four days but it is worth trying if you really want to get the best deal.
- Aside from doing your own research and doing valuation, you can also ask some questions to the selling agent during negotiation process. You can ask question related to the asking price. You can ask questions regarding to other offers. Try to find out if the selling agent has made other offers or not. This will help you to know if the vendor serious about selling the property. Next question is about the period of property in the market. Try to find out how long has it been there. And of course, you also need to know the reason why the owner wants to sell the property. This will open chance for you to know how desperate the seller is to sell their house.