We’ve all had experiences where we were so excited to purchase a particular product that we missed paying attention to some details.
For some of us, it could be a relatively trivial incident such as buying accessories that don’t match garments. Unfortunately, this also happens when making significantly large purchases such as a home.
Buyers’ remorse is a common phenomenon in the real estate industry where first-time homeowners feel they should have done things differently during the purchase.
There could be multiple reasons behind buyers’ remorse. One recurring source of regret, however, is the feeling of not having negotiated well enough.
Negotiation is something of an art that requires presence of mind as well as practice to be good at it.
If you’re in the process of buying a home, here are a few basic things you should not do when negotiating with the seller.
Being unprepared
For most people, a home is probably the single biggest purchase they will ever make in their lives.
In such a case, it is only logical to be well-informed and well-prepared at all stages. What this means is that you should do your research before attempting to negotiate the price of the home.
Take some time to understand the dynamics of the realty market, know what the average cost per square foot is in the locality you’re targeting, and try to gain an understanding of how urgent the sale is for the seller.
Consider this the foundation of a good negotiation.
Being unaware
When it comes to selling property, there will always be a few sellers who resort to not entirely fair practices. For instance, artificially boosting prices above prevailing market rates.
Sometimes, homeowners from a particular location or a colony come together to hike up prices above normal property rates to make it look like the price being quoted is fair. Being aware of such possibilities will help you protect yourself from being conned into paying more than you should.
Being naïve about payments
When negotiations are underway, sellers can sometimes agree to your price under the condition that you make a significant part of the payment in cash. This is a terrible idea and can get you in trouble with the law if you acquiesce.
It may also be a good idea to be pre-approved for a home loan. This will make you a better prospect in the eyes of the seller.
Being unguarded
Some folks wear their hearts on their sleeves. While this is usually a charming trait, it can be detrimental to a negotiation.
Refrain from displaying excitement or eagerness regarding the property. Also avoid discussing your intent behind purchasing the property if you’re considering it as an investment rather than self-occupation.
Another aspect to avoid revealing is how much of your personal funds you plan to use to finance the purchase.
Being inflexible
It’s always a good idea to go into the negotiation with an open mind. Remember that it’s not a zero-sum game.
If the seller is not able to come down to the price you want, don’t hesitate to ask for inclusions instead. Most sellers are willing to provide inclusions rather than price reductions.
While these are some basic practices to avoid, the critical thing is to be clear and firm about your offer to the seller. If you find at any point that the negotiations aren’t going your way, don’t be afraid to walk away.
Feeling cornered into taking a deal is one of the fastest ways to acquire buyer’s remorse.
This article was originally published on www.thehindu.com
