You need to have a firm
foundation of information and strategy. Successful negotiations need to have a
firm foundation of information and strategy.
1. Convert meaningless offers into meaningful cash
discounts
In order to attract buyers in the currently
difficult market, several builders are resorting to offers and freebies. Some
of the recent examples of such offers include free 10-gram gold coin, waived
floor-rise charges, free stamp duty registration, free memberships to club houses
and amenities, free modular kitchens, international holidays, free cars, etc.
Negotiators who do not see value in such offers can and should negotiate for
better prices instead.
2. Enlist the help of an expert
Typically buyers seek to avoid brokers because
they wish to avoid brokerage fees. However, not all buyers are in a position to
strike a good deal with builders or landlords. They could risk paying more than
required, or winding up with an apartment in a bad locality and by a less than
reputable builder. Buyers should explore all channels of transacting – brokers,
online information sources as well as direct contact with owners, if possible.
This will help evaluate one’s on ground ability to strike a good deal. It may
emerge that a good broker is actually a better bet.
3. Express interest
This is probably the most misunderstood aspect
of a negotiation. It is a myth that expressing their interest in purchasing a
flat puts one at a disadvantage at the negotiation table. In fact, buyers
should clearly express their desire to purchase so that developer can seriously
consider offering them a better deal. Builders treat genuine buyers very
differently from idle information seekers. Buyers should approach the
negotiation table with their cheque-books, ready to pay a token amount and
every assurance of serious interest if a good deal is offered.
4. Don’t attempt to time the market
There have been far too many victims of this syndrome in the
past, both in the financial markets and in real estate. Builders are currently
willing to offer good deals to serious buyers. Armed with sufficient knowledge
about the current market situation and honed negotiating skills, buyers can
leverage the currant opportunities to purchase a house at good prices. While
prices will correct to some extent in certain cities, no one can precisely
predict the bottom.