Being able to buy a property at the desired price is one of the most important
aspects of property investing. This is true whether you are looking for a renovation
project or a simple buy to let. Remember negotiation tactics are key for the
property investor.

The Power of negotiation

Never underestimate the power and potential of a good negotiator. As a property
investor, it is absolutely vital that you hone your negotiation skills to make
sure that you get the deal you want - every time. Being unaware of negotiation
tactics is a real blunder for the modern investor. Even if you are not fully
confident in using hard negotiation tactics, it is absolutely vital that you
understand what the other party is doing and how they are behaving.

Although anyone can learn basic negotiation skills, it is not a process that
comes naturally to everyone. If you are thoroughly uncomfortable with negotiating,
then hand over the task to someone else, either a friend or a professional
- it could save you thousands!

Preparation is a big part of any negotiation. Make sure that you personally
are extremely aware of what you are trying to achieve. Calculate your bottom
line and make sure that you know exactly what any deviation from your
ideal position will do to your bottom line.

Before entering into negotiations on any one property, it is vital that you
do your homework. Always view multiple properties in the area, even if you
have already decided on the one that you want, as this will enable you to target
any weak points that your chosen property may have. A vendor is likely to be
more than aware of the competition, so it is important that you arm yourself
with the same information.

Even the most hardened of negotiators feels a surge of adrenalin when they
enter the negotiation arena. The difference is that an experienced negotiator
will learn to use the adrenalin to their advantage and will curb any less than
helpful natural urges to become impetuous or aggressive.

Unless you are particularly nervous, it is better to negotiate face to face,
as this allows you to make the most of any non verbal clues that your ‘opponent’ uses.
Actually going into the office is particularly important when you are purchasing
a property and should be done wherever possible. By turning up in person and
putting your offer to the estate agent, you are putting them in a position
that requires them to phone the vendor in front of you for a response. By doing
this, you can gain a hugely advantageous position because you can hear exactly
what is being said by the agent. In fact, this offers such a tactical advantage
that you may find the agent is reluctant to have the conversation with the
vendor in front of you. Of course, you cannot insist on them phoning there
and then, but you can try and encourage this possibility.

The focus of the negotiaion

Remember that although the majority of negotiations will centre
on the price, there are actually other issues up for grabs such as timeframes,
fixtures and fittings and current position. As an investor, it is likely that
you will not have a property to sell and this can be used to your advantage
by offering a quick completion, or if they are looking to find another property,
flexibility in the actual moving date. These added considerations are extremely
powerful and any bonus that you can offer in this way should be used. Do not
use these issues as part of your first negotiations; use them as an ‘instead of’ a
further price rise. For example, if you offer £125,000 on a property
that is on the market at £135,000 and the vendor states that they want
a minimum of £130,000, you could then come back with £127,500 and
completion within 28 days, thus drawing the attention away from the cash and
onto the ‘added value’ that you can offer to the sale.

Above all, it is vital that you remain calm. If you feel that you are losing
your composure, take time to regroup. If you are on the phone you can say that
you will have to consider your position and you will phone back in X minutes
/ hours. Leave it slightly longer than you promised but never more than double
the time, while you gain your composure and also make the other party concerned
about losing their sale. If you are negotiating in person, then taking a breather
can be slightly harder, but using the excuse of needing to phone someone (even
if this is entirely fictitious) is a good way to give yourself time to consider
your situation.

Some people thrive on negotiations, other avoid it like the plague. Whichever
type of person you are, you will inevitably have to be aware of the tactics
used by the professionals when buying or selling property. Getting wise to
the ways of the negotiator could save you a lot of cash in the long run!

To get more information on negotiation tactics look at these sites:

www.findaproperty.com/story.aspx?storyid=8398
www.mortgagesorter.co.uk/ home_buying_making_an_offer.html
changingminds.org/disciplines/negotiation/tactics/tactics.htm

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