When buying an apartment, one negotiates with a cold head, without emotions
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When buying an apartment, one negotiates with a cool head and no emotions.
If you want to lower the price, you should not say this at all
About ten years ago, the conditions of purchase and sale went in favor of buyers, and today the situation on the real estate market has changed by a pillar, comments real estate agent Diana Perger
It is in every buyer's interest when buying an apartment or house to lower the price. On the other hand, every seller wants to get the best price possible, and in order to find themselves halfway, it is necessary to negotiate, which is one of the key sales processes in the real estate market.
Almost ten years ago — when real estate prices in Croatia were still in a slight decline, when supply was higher than demand, and the difference in demand and realized price was greater than today — the situation was in favor of buyers because they were the ones who dictated the conditions of purchase and sale.
Today, however, the situation on the market has changed radically: with an evident shortage of quality real estate and increased demand, the market is “ruled” by sellers, and often higher prices and better conditions are achieved than those that were given. This is what Diana Perger from the real estate agency Euro-interiors tells us, who points out that negotiations today no longer go in the direction of lowering prices, but are offering various benefits to sellers on behalf of buyers.
- It is not uncommon for two or more buyers to come to the same property. In such a situation, either there is no price negotiation or the buyer, if he really wants to buy this particular property, is forced to offer a higher price or better terms of sale - says Diana Perger.
“Buyers are not comfortable hearing that they are not the only ones interested in a particular property because they are aware that they will have to offer a higher amount or accept certain conditions.”
Under the terms of purchase and sale, he points out, several items are implied, all of which influence the decisions of sellers and buyers.
First, let's break down the 'myth' related to the purchase price itself. It is not the only key when deciding to sell or buy a property. The amount of the deposit is also important, namely whether the buyer pays 10 percent or more of the amount prescribed by law, as the first part of the purchase price, ie how much the seller expects and how much the buyer can offer. Then there are the payment deadlines, which depend on whether the buyer pays in cash within a few days or by credit within 60 to 90 days, so eviction deadlines, equipment and furniture that remains or is taken from the premises...
The more flexible customers are in terms of purchase and sale conditions, the more the final purchase price becomes a key factor when making a decision — he points out.
Nevertheless, due to various circumstances, it happens that sellers “choose” buyers who are ready to comply with their conditions. He also gives us several examples from practice, for example, when a seller buys a property for which he has already paid a share of the purchase price he receives from his buyer and the payment deadlines are approaching.
“Sellers, who are still emotionally attached to their property, do not want to hear sentences with which buyers most often try to lower the price further, such as 'there needs to be additional investment', 'we don't like how you arranged it, we would do better'... This is not the right way to go if you want to lower the price. Buyers need to be very careful not to ultimately offend the seller.”
Sellers who only start looking for another property they want to buy after receiving the money for their property are faced with “long” deadlines for both payments and evictions, and will choose a buyer who will not set conditions with eviction deadlines, but will “allow” him a reasonable period for eviction so that both sales go with as little stress as possible.
- Therefore, even in this situation, the price is not the only and exclusive factor - he emphasizes and adds that the seller who decides to offer equipment and furniture in addition to the property will give preference to the buyer who is willing to buy them over the one who wants the property to be handed over to him emptied.
There is no noticeable decline in real estate prices on the market, however, there is a noticeable stabilization of both prices and transactions, and most buyers are aware of the current high prices.
“The price goes down for less than ten percent of properties, and only when it is set unrealistically high at the start, even in today's circumstances.”
- Assuming that the sellers have set a real market price, it is not necessary to lower it. We almost always achieve a set price, and in the case of multiple buyers for the same property, offers of all buyers with their conditions are transparently transmitted to the seller and the seller chooses the one that is most acceptable to him. 'Benefits' are considered to be how flexible the customer is when it comes to the amount of the deposit, payment deadlines and moving in. The price drops in less than ten percent of real estate, and only when it is set unrealistically high at the start, even in today's circumstances, and does not go down to a certain percentage, but to a real level - he says.
We were interested in how to at least try to lower the asking price.
— It is essential to turn off emotions, negotiate with cold heads, be attentive in the conversation, listen carefully to the seller, and it is best to leave the negotiations to a professional, with prior consultation with your real estate agent, who will introduce them to the interest in a particular property and suggest to them what is reasonable and what is not. The agent is familiar with the conditions expected by the seller and can negotiate qualitatively on behalf of the buyer in accordance with them. This path is the most effective for both parties and the way in which the purchase and sale will be completed without additional stress - concludes Diana Perger.
Why do unrealizations occur?
Inflexibility and lack of compromise in order to achieve the most acceptable conditions for both parties most often lead to parting and unrealized purchase and sale.
— These are, therefore, the seller's insistence on unrealistic terms and the buyer's failure to accept reasonable terms. Furthermore, regardless of the extremely dynamic state of the real estate market, sellers should be aware that real estate does not sell by itself. It must still be 'pleasing to the eye', qualitatively and professionally presented to the market and have all the necessary documentation. The time of illegal real estate with incomplete documentation is far behind us - says Diana Perger.
Diana Perger, agency Euro-Interiors
Published: 14. May 2023.