How to Negotiate a Great Price on Your Next Property?

In this episode Simon explains in detail exactly how to negotiate a great price on your next property investment and shares the one question, you must ask, that will save you thousands off of every property purchase moving forward. Every negotiation is a series of steps and Simon shares exactly what you should be doing and saying at every point in the process to make sure you get what you want. As a potential buyer, you are in a really strong position – the seller wants to sell their property and is motivated to do so, but you don’t need to buy this particular property for you there are always others, you are only interested in buying if it’s a great deal that works for you. Listen in and find out exactly what questions you should be asking and how to negotiate the deals that will save you thousands of pounds moving forward.   KEY TAKEAWAYS The Preparation What do you want to pay, What’s the best scenario for you? What would be the worst-case scenario you would be happy to accept? At what point would you walk away? Price is not the only factor -  you can negotiate on terms as well, such as when they receive the money from the transaction. Options include purchase lease, exchange with delayed completion and staged payments. Once you are clear on what would work for you,  you need to know what would work for the seller. The majority of sellers want to maximise their price but motivated sellers want speed and certainty and sometimes they will take a lower price because the price isn’t as important to them as actually getting the deal done.  It’s really important to build rapport with the seller because when there is trust, they are more likely to tell you what’s important to them. The offer You need to mentally prepare because there is a balance between wanting to make money and achieving an ethical win,  win for all involved. Ask the seller ‘what’s the lowest price you would be prepared to take and still be happy ?’ if you have built rapport this makes people really think. Make an offer on every property you view. This is good practice and helps you work out what properties are worth to you. When you have decided on your offer take off 10% - this will mean it’s a very low offer – they will probably say no but you’ve given yourself space to negotiate a price that works for you. Once you have made your offer – you need them to respond before you say anything else, the silence can psychologically provide you with the advantage. The Follow up This is where many investment buyers fail. When the seller comes back and says no – the question you must then ask is ‘what would work for you?’ and remember sellers become more motivated with time. You need to proactively follow up, this is one of the easiest things to do but many fail to do this. Many investors rely on the agent or the seller coming back to them but you should develop a daily habit of following up on every offer you have made. When you start to really engage in the negotiation process and you will pay less for the properties you are investing in moving forward   BEST MOMENTS ‘It’s important to never make assumptions about what they want’ Many investors rely on the agent or the seller coming back to them ‘You want to get a good deal but you don’t want to push it too hard’ ‘What can you afford? What’s the maximum you want to pay’   VALUABLE RESOURCES ·     Property Magic: How to Buy Property Using Other People's Time, Money and Experience by Simon Zutshi ·     property investor’s network (pin) - www.pinmeeting.co.uk iPhone:  http://bit.ly/pinAPP1 Android https://bit.ly/pinAPP2 Never Split The Difference - book by Chris Voss   ABOUT THE HOST Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk.    pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way.  How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals.   CONTACT METHOD Contact and follow Simon here:   Facebook: http://www.facebook.com/OfficialSimonZutshi  LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/