When you’re ready to buy an investment property in Roseville, you likely have an idea of what you want to spend and how you want the deal to be structured.
Whether you’re an experienced investor or purchasing a property for the first time, you need to be prepared to negotiate. You want to feel like you’re getting the better deal, but your seller plans to feel the same way when they come to the table.
Having a great real estate agent on your side can help you negotiate the best possible deal. We have some additional tips that might help you strategize as you approach a competitive and sometimes unpredictable Roseville real estate market.
Get to Know the Roseville Real Estate Market
Before you make an offer or negotiate a deal, you have to know how the market is performing and what you can and cannot get away with when it comes to pricing and sales terms. You’ll begin negotiations from a stronger position when you have the data and the comparable sales figures to support what you’re hoping to get the property for.
Conduct some thorough market research. Saving even one thousand dollars on your final price can turn into some pretty impressive returns over the years, especially as earnings compound. Know your numbers before you even enter the market. What are homes selling for? How much higher or lower are those prices than the listing prices? Will you need to make an offer that’s above listing or can you offer something less than what the home is priced at?
These questions can only be answered if you know the Roseville market. Right now, it’s pretty hot.
Before you begin negotiating on a specific property, analyze comparative properties in the neighborhood. You need to know what they sold for over the last quarter or even the last year. How does the property you’re considering differ? This will impact the strength of your negotiations.
With the right data and market evidence, you can support an offer that’s less than asking. You can also negotiate terms like inspection requirements, credits, closing date, and even closing costs.
Know Your Own Numbers
You know the market numbers and you know what’s reasonable when it comes to an asking price and an offer. Next on your negotiating to-do list is understanding your own purchasing power and setting firm boundaries for what you can and cannot afford.
Check your finances before you move forward with a property purchase. You’ll need to know how you’re financing this deal before you begin making offers or considering counter-offers. Paying in cash, for example, will give you a bit more leverage with a seller. It promises a quick, uncomplicated sale, and a lot of sellers are willing to drop their price point in order to access that ease.
You should have a budget in place so you know how hard you can negotiate and how much wiggle room you have when the seller pushes back.
Your investment goals will also drive where you are financially, what you’re willing to spend, and how you’re planning to structure the deal. Think about whether immediate cash flow is more important than long term appreciation and equity.
A careful review of your finances and investment goals will tell you where you’re starting when you negotiate and how high you’ll be willing to go. Stick to those numbers because they determine your profitability.
Ask for Inclusions When Negotiating
When you negotiate, you aren’t just negotiating the purchase price. There’s so much more that’s on the table.
Use inclusions towards the end of the negotiation process. If you are leaning towards accepting the seller’s latest offer, ask for something in return. Maybe they’ll leave the washing machine and the dryer. Or, you can negotiate the repairs they’ll make before you close the deal. You can offer to waive the requirement that the water heater be replaced if they’re willing to come down a thousand dollars on the asking price.
Using inclusions can help you get closer to your target price when you’re negotiating an investment property purchase.
Never Let Yourself Look Desperate
You don’t want to approach the negotiation with an emotional energy that lets the seller know you’re really attached to the property and willing to do anything to acquire it. Desperation is always obvious, and it’s better to reflect an air of detachment. Let your seller think that you’re considering a number of different properties and you’re not even sure you’re completely sold on this one.
You want to show that you’re interested, but not worried. Your energy should demonstrate that you’d really like to work out a deal that works for all parties, but if you can’t, you’ll simply move along to another home you’ve identified as a great investment possibility.
This doesn’t mean you should be arrogant or boastful. The seller likely has other options, too. Instead, be complimentary about the property and express that it stands out to you despite having seen a lot of homes.
Be cool. It’s good for your negotiation.
Prepare to Compromise and be Flexible
You likely won’t get everything you want. But, if you’re willing to compromise and be flexible, you can likely come away with a deal that makes you happy. Give a little in the places that you can, but hold firm in the areas that really make a difference to you.
And, prepare to walk away if you have to. There’s no reason to try and force a deal into place if it’s just not happening.
It’s not always easy to say no when you’ve invested so much time and energy into negotiating what you think is a pretty good deal. If you’re not ready to walk away entirely, tell the seller that you need some time to think about what their final offer looks like. You can continue negotiating after all parties have cooled off and thought about their positions.
Or, you can go ahead and walk away. It’s difficult, but sometimes necessary.
Looking for some additional support as you seek a Roseville investment property? We can help you. Contact our team at Action Properties, and we’ll help you with every step of the process.
