The end of the real estate party has caused a major shift in the roles played until recently the main players in this market: the buyer and seller. The crisis, unemployment, difficulties in finding financing and brutal competition from financial institutions to give out as soon as possible to your 'brick' have left the individual who wants to sell your home in a very difficult situation when negotiating the price sale of your home.
A solvent buyer savings without large funding needs for months has the upper hand in the negotiation process against an individual. Gone are the days of trite phrases like "I take it off of your hands" or "should already decided because I have three other actors than you." If in January 2003, during the turmoil of the Spanish property market, barely took fourteen days to sell a home, five and a half after the bubble burst, the average has grown exponentially to 465 days.
"Even lowering the price ensures the sale of a home," recently explained to The Confidential Fernando Oaks, one of the founders of the estate portal idealista.com. "The only alternative if an owner wants to sell in the next 12-18 months will accept offers if you come."
During this summer, buyers submitted offers in Spain around 24% below the prices offered. This percentage is merely indicative since the data collected by idealista.com not reflect whether sales finally materialized with these rebates.
So how does the price of a home is negotiated ?, What factors should be taken into account ?, how far you can lower the price? Having the upper hand does not mean that the success of the operation is guaranteed. When submitting an offer is necessary to consider several guidelines.
1. How much I can spend and how much money my disposal. "When someone asks for my opinion, it is the first advice I give," says Fernando Encinar. You have to take pen and paper. How many savings, I have ?, I can count on financial support from my family ?; If I have invested money, I can rescue it? ...
2. Talk to the bank. You know how much money your hotel; now you need to go to the bank to see how much funding is willing to give. It is important to note that the bank today, just finances 80% of the operation. If you need 100% only have at your fingertips the home of a bank and does not have the same bargaining power against an individual. Their pricing is marked at the top and is much more difficult to negotiate. In fact, this control over funding often results in higher selling prices.
3. Start hitting the market. Already have a starting budget. If, for example, are looking housing in Madrid, focusing your search in the area where you want to live. The Madrid property market is very large and heterogeneous. If you clear the area, you will restrict the search. A look at real estate portals as idealista.com allow you an idea of prices that are handled in the area. If you are far from your original budget, possibly have to find home elsewhere. In any case, take the calculator and make based on your budget numbers. "If you ask around half a million euros and can spend up to 370,000, submit a bid," recommends Encinar.
4. Negotiate not haggle. We found the house of our dreams. It's time to bid for it, the time to negotiate. "It is essential to differentiate between bargain and negotiate. Buying a home is not like buying a scarf at a flea market. When haggling only takes into account price, and negotiation come into play many other factors such as payment terms, terms, is taken into account if the house needs repairs, if the buyer is interested in staying with some furniture, and so on, "explains Rodrigo Pinto, partner and agent for RE / MAX. "It's much easier to deal with a family that will evict them and you offer price plus a few months for them to stay at home if they offer a very aggressive price. A confrontation that is generated does not lead to any part, "he adds.
5. Put yourself in the hands of a real estate agency. For Fernando Encinar "is a mistake and a waste of time to go directly to the particular. It is best placed in the hands of professionals. The agency is punctual, keeps you informed what's new and can even guide you when making the offer. "In the two years that he was looking floor Encinar found that, in general," individuals are much more informal, unpunctual in many cases. If the individual lives in the home can be an ordeal visit because they feel uncomfortable when you look in the closets, drawers ... But when you go shopping you want to see everything. In addition, when you submit an offer if this is very aggressive, the agency warns you, gives you signals as to how far you can negotiate. To me individuals have come screaming and insulting me, "recalls Encinar.
For Rodrigo Pinto, the role of the agency is also critical, since "the agent put aside emotions." "When we buy, whether a house, a car, clothes, do impulse and emotions are best left aside. If only we bought out of necessity, not luxury cars would be sold. There we suffice with simple utilities to move from one place to another. When we encaprichamos a home stop being targets. also the property owner sets a price on the memories that will generate housing. Hence the intermediary is more objective when looking for both an selling price as reasonable purchase. good agents seek to negotiate as fair as possible for both parties, "explains Rodrigo Pinto.
6. To negotiate has to be money involved. In the same way that going to a court auction is required to post a bond in order to start negotiations "there must be money to be made," explains Rodrigo Pinto. "Be serious." For both the agent and the seller see that there is a real interest in housing, usually deposited a signal. And this deposit should include a contract which provides that it is a refundable reservation and if there is no agreement with the seller, the amount will be returned to the purchaser. When a broker involved, as the real estate agent, this often acts as depositary of the amount so then there is no problem in case of return.
7. The prices of the individual are higher. Generally, the buyer, at the time of pricing is usually set higher than they actually expect to receive the amount that, in a market like this, of falling prices, is aware that the buyer will request a rebate. Many individuals are reluctant to work with real estate agents for committing these remain in operation. However, agencies are in direct contact with the market and know how the prices are moving, so the amount of buildings that advertise often not so far from reality. In addition, the agency commission never pay the buyer of the property, but an amount or percentage that agency and seller agree.
8. Find the urgency of the seller. At present, who is selling because he needs it. The more urgent the need for a homeowner to sell their home, be more open to listen to offers.
9. Rate the status and location of the property. It is essential to examine in detail the housing. At the same price and similar dimensions, it is necessary to assess whether an apartment needs a thorough reform, whether or not it has an elevator, if there are schools, hospitals and pharmacies nearby. All of which offer a bonus to housing or remove it.
10. If the house of your dreams, do not throw looked back. It is possible that, as a buyer, once you have accepted the offer feeling that might have tightened the nuts to the seller. And vice versa. This, in turn, will be left with the feeling that I should not have accepted the offer. As a buyer, if the house of your dreams, where you want to live, not worth obsessing. You get the house, now enjoy.
