3.3.2. Negotiation Strategy
Negotiating is an art and unless you are fluent in Spanish, buying from a English speaking seller or a skilled negotiator yourself, you will be well advised to use the services of a professional real estate agent.
It is important you have a good understanding of the negotiating strategy however, and stipulate clearly how much you are willing to pay.
Underplay your budget
Estate agencies tend to offer you properties for slightly above your budget, so it is often a wise move to underplay both how keen you are to buy the property and the amount you have to play with. Offer 5-10% lower than the asking price. It will ensure you have a little leeway on the negotiating table. A little poker face cool will go along way too.
Research the property market
The more research you do on the property, on the area and on the real estate market in Mallorca, the more likelihood you will get the deal you want. Keep an eye on the local property market and particularly on how quickly and how much similar properties are going for.
Useful questions
There are a number of questions you can ask your estate agent, to help you get a better picture of the property and put you in a stronger position to put in an offer on the house.
Why is the owner selling?
Find out why the owner is selling, what exactly is included in the price and how long the property has been on the market. If the seller is desperate to sell then you are in a stronger position to lower the asking price.
What is the sellers's bottom price?
Your real estate agent may know how low the seller is willing to go and this is very useful information indeed.
Did the owner ever live in the house?
It is also interesting to know if the owners ever lived in the house and how long for, and if the house has been passed on repeatedly between owners. You don't want to get any nasty surprises, neighbours from hell, something serious you have overlooked. If the property has changed hands too often you may want to know why.
What is included in the price?
Clarify land boundaries, and exactly what is included in the price. is there a well on the property and if so, who has access to the water?
Are there any other potential buyers?
Other potential buyers and interested parties are also a good indicator of how good a deal this property is. Your agent will most likely hint towards this yet not tell you exactly how much or how many. There is a strong incentive to get the house sold though, so try to find out what the general offer is and bid accordingly.
How soon will the owners move out?
If you do decide that this is infacr the property for you, stipulate how long the present owners will be able to remain in the property once it has been sold if at all, and establish a date for departure.
You are at an advantage if:
The property has been on the market for a long time, the seller is in a hurry to make a sale and if you are the only person interested in this property. If this is the case you are in a strong position to put in a lower offer. You are also at an advantage if the agent is competing with other agencies and wants a quick sale to secure their commission.
In order to prompt the seller further, suggest a completion date, show you can act quickly, offer a larger deposit and have all your finances in place.