When it comes to making a property investment, the price you pay will have a bearing on your potential profit. You’ll want to get each property at the best possible price so you leave as much room as you can for returns. If the building needs work remember to factor this into your offer. Negotiating is important with any kind of investment, especially properties.
For some investors, negotiations are highly stressful but they needn’t be. There are many factors that will make you want to put in an offer at a higher figure, but you should stick to your guns and put the first offer in at the amount you want to pay. You shouldn’t worry about upsetting the vendor or the owner of the property; they expect tough negotiations because they are searching for the best deal too.
Starting off at your lowest point is wise because you can easily up the offer if this one is unsuccessful. If you start high there is no way to go down, and you will lose some of your negotiating power. As the buyer it is always important to remember that the seller wants to complete the sale and they are unlikely to walk away without negotiating with you.
When putting in additional offers remember to take it slow and take small jumps rather than big leaps. The seller will expect you to leap up whilst they only come down smaller amounts but you shouldn’t fall into this trap. Most importantly set a maximum figure you want to pay and don’t ever exceed it. You can always take your money elsewhere and find a different investment.
Before entering negotiations make sure you have a look at the building and get any surveys done. This will give you more information and improve your bargaining position, particularly if you choose an extensive survey that checks the majority of the property. Remember to gauge the value based on the condition, values in the area, the level of demand in the market and the potential for growth in the future. Never just simply go off the figures you are quoted by the seller or vendor.
As the experts in property purchases and property management in Kingston Upon Thames and the rest of London, we can offer all the advice and assistance you need to get the properties you want at a great price. Contact us today to learn more about our investor services.