Five Factors that can Make or Break a Deal

In the art of negotiation, you walk a fine line between getting the best deal you can get and ruining your deal. Balancing on that line can be challenging, so make sure you understand the factors that can make or break a deal before you accidentally ruin your deal.  

1. Property Price.

The property price is typically the first factor that can make or break a deal. Before you go offering $20k under the property price, find out how well-priced a property is. Some sellers price a property appropriately, which means there isn’t much haggle room – and offering too little can break a deal. Find out whether your sellers have inflated the price, or the asking price is appropriate – before you make an offer.

1. How long a property has been on the market.

How long a property has been on the market can make a huge difference in making a deal. If the property has been on the market for three days, the sellers are much less likely to lower their price than if a house has been on the market for six months.

1. How motivated are the sellers?

Motivated sellers are much more likely to deal than unmotivated sellers. Are the sellers relocating? Have they purchased another property? Or are they just feeling out the market? Knowing how motivated the sellers are can be your key to making a great deal – or moving on to the next one.

1. How motivated are you?

Are you ready to make a deal within the next month, or do you have the flexibility to wait until the right property and the right sellers come along? If you’re extremely motivated to buy quickly, you might have to accept a less than optimal deal, and understand that in your negotiations. If you have time, though, you can let poor deals pass you by while you wait for the right deal.

1. Whether you’re in a buyer’s market or a seller’s market.

If you’re in a buyer’s market, you’re in a position of strength. There aren’t enough buyers to go around, and the seller may be more willing to make a deal. In a seller’s market, though, the sellers have the power. In a seller’s market, there are typically too many buyers for too few properties, so sellers can get away with setting a high price, and may even have a bidding war for their property if it’s desirable enough.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Steve SchraderBachar is a local mortgage planning expert who resides in Iowa and provides service to the clients of his mortgage planning practice across the Midwest.  You can reach Steve at 1-515-289-4381 or 515-360-5197.