7 Ways to Negotiate Like a Champ

Whenever you are trying to buy or rent it often feels like the seller or landlord holds all the power. In reality, sometimes they do, and sometimes they don’t. You have a power move in your pocket, but it all depends on how you use it.

No matter what you want out of a deal, better upgrades for your rental, or a lower price for your home, if you play your cards right, you can end up getting the deal you want, and it becomes a win win for both parties.

Here are seven tips to learn how to bargain.

  1. Offer to sign a long-term lease

Have you finally found the right apartment, and are determined to move in, only to find out the rent is out of your reach? Don’t give up just yet.

One thing landlords are not fond of is vacancies. When they have no tenants, they have no cash flow. Renting in a super hot market does give them the upper hand, and they’ll pass you over if you don’t agree to their terms. However, if you offer to sign a two year lease vs. one year, you can re-negotiate the rent and probably get them to come down a bit.

  1. The quick close is your friend

 

Time is money in a bidding war. Not everyone has the cash to pay for a house, but if you can, have become that much more attractive. This is especially true if the seller has already bought a home and is moving soon. Make sure the bank can put your loan together in good time, and then offer a short closing period to sweeten your deal.

 

  1. Procrastinate

We’ve heard our whole lives not to procrastinate, but once in a blue moon procrastinating can be your friend.

Waiting until the last minute to talk about rent negotiations, you can likely save some money for both of you. If you do this six months into the lease, the landlord might get suspicious of you trying to break the lease. And this could cause major problems. Most landlords would happily avoid drawing up a new lease, listing the property, and making repairs for a showing. If they can avoid it all by lowering rent to a happy tenant, you bet they’ll do it first chance they get.

  1. Investigate the pending comps

 

Have all the recent sales in the neighborhood you’d like to live in been condo sales? If some of the properties under agreement similar to the one you want, now is when you want to ask your real estate agent to dig up some dirt.

 

Ask your agent to talk to the listing-agent for a little gossip. They may not find out every little detail, they will be able to find out how much less, or more, the seller got for the asking price, and how many offers they received. Having this offer will give you some insight on where you should place your offer.

  1. Pay now and save later

As much as you love your rental unit, it probably needs repairs. If you are handy in the least bit, this is your golden ticket. As you get closer to the end of your lease you should sit down with your landlord and offer to make some repairs for rent deductions. Yes it will cost you right now to give some care to the place, but that money will come back to you.

  1. Don’t sweat pennies

No one wants to hand over an extra $10,000 for an offer, but if you ask your mortgage broker to do the math, you will be surprised how little difference that will make in your monthly mortgage costs.

Draw up a few different scenarios of what you could be willing to spend, and once you find the right house for the right price, you’ll know what will be coming out of your wallet.

  1. It doesn’t hurt to ask

You can always ask for things. The worst they can say is no. Ask your agent to make a few gentle requests for the sellers and see how they react. In most cases, the seller won’t ditch the deal over asking for the back fence to be repainted.

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