Property negotiations

Negotiation with RFC Estates

Real estate negotiation and bargaining: the essence of the service is the advocacy by a third party of your personal financial interests in property transactions. In other words, we negotiate to reduce the price of the property you are purchasing.

Bargaining in favour of our buyer: our task and desire is to buy together with our buyers and bargain in their favour!

Communication

Information exchange process and understanding of interests! Without knowing the cause of events and intentions, it is impossible to evaluate them!

Negotiation

Negotiation is an option for a reasonable solution, an act of everyday life, a basic means of getting what you want by communicating and interacting between the negotiating parties to achieve goals, the ability to make decisions and formalise them with a contract!

Bargaining

Bargaining - negotiation to conclude a deal. The essence of the service is to defend your interests in transactions: we conduct negotiations aimed at reducing the price of the object you are buying. With a competent bargaining with the seller of the property you can save a few % of the price of the object.

“When negotiating on behalf of our buyer, our task and our desire is to buy with our clients and negotiate in their favor! Three basic negotiation scenarios and outcomes: Optimistic - Realistic - Pessimistic
But how do we do it? What degree of negotiation is possible when buying real estate, and how can we negotiate effectively with the owner to reduce the price? What arguments should we use?”

Analytics is the most important thing in life, in business and in buying property!

To begin with, it is necessary to define a list of important criteria for property selection: cost, location, infrastructure, transport, schools or something else that best suits the necessary criteria. Then it's a matter of finding the right property and bargaining power.
Each property has its own history of changing ownership and signing a contract of sale. All buyers were sellers and all sellers were buyers!
You have to respect the owner's opinion to get what they want. Sometimes buyers think they are the only ones and the seller will make all the concessions - this is not true and should be avoided. During bargaining it is easy to overdo it or say too much, you should not do that - it will lead to the fact that the seller will not agree to the concession and may even refuse to communicate and the deal.
The owner wants to get the best price for the property being sold, even though he is morally ready to bargain, but will try to avoid it delicately and the main task is to provide balanced arguments for bargaining.
You must pay attention to the property's defects as an argument for bargaining, it is not necessary to stoop to excessive criticism or ostentatious dissatisfaction, it is necessary to explain to the seller that in general the object is liked and for the shortcomings seen ask to reduce the value and offer a reasonable discount.
It is necessary to make it clear that this is one of several variants of similar offers, that you are ready to consider the purchase of this object, if the seller will make a discount.
An important argument of bargaining with the seller the possibility of an additional discount for the speed of the transaction and own funds for the purchase without credit.
The main factor influencing the deal is an adequate price. It is necessary to talk about the price, the dialogue is the most important, it is necessary to conduct it tactfully and reasonably.

To get the price right, you need to understand how the price was set and the purpose of the sale.

The listed price of the property is the asking price, the maximum price for which the property is willing to sell, not the final sale price. The fact that the seller wants a certain amount will not make the property go up in value and it is not a guarantee that it will sell for that price.
How long do the owners plan to sell? Perhaps their property will go up in value over time if property prices rise. But they are also planning to buy the property in return, which means it will also go up in value if prices rise! Is there any point in spending time on this?
Some landlords overprice properties and are hard on concessions, and this makes it difficult to bargain and deal. Overpricing reduces the market value of an asset over time.
In luxury property, sellers are in no hurry at all: they quietly test the market and wait for their buyer. There is no hard and fast rule. Some properties stay on the market for six or seven years with slow gradual price reductions, while others only stay for two years before receiving much more severe discounts.
It is difficult to isolate a single explanatory factor - it is more a combination of several, but it is more likely to be related to seller psychology and changes in family situations rather than actual changes in the economic environment.

LUXURY PROPERTIES
On a positive note, deals above €10/20m or more are back again!

In prestige property, whoever has compromised nothing has gained nothing.  but he who overestimates everything rarely sells anything! Prestige agencies, instead of defending independent valuations, are too inclined to accept the selling price offered by the seller.
For international clients, the first important step is always an opinion from market savvy experts who understand the local peculiarities and changes.
There is no such thing as a 'perfect' model, nor should large international firms be pitted against independent experts.
The real outcome is not the size of the organisation, but the quality, rigour, flexibility, access to data and real local expertise of the professional who actually does the deals, not the brand over their head.
We systematically invite parties to tune in to the real price and work from the very first exchange with buyers and sellers to make them aware of the reality of the market and effective collaboration.
Today's buyers are rational investors, not dreamers. A seller's overpricing of their asset means they are more susceptible to dilution of perceived value, maintenance costs and taxes, these assets are often subject to short term variable rate financing where time is not always in the seller's favour.
Sometimes advertised sale prices for luxury properties can be higher than reality in certain possible cases where owners are encouraged by inflated valuations from estate agents to get a mandate.
In luxury property, discrepancies between the advertised price, the first advertised price and with the last price displayed at the time of sale are still all too common.

Sellers often fall into fantasies and fuel mandates with the hope of a billionaire buyer disconnected from real and local values, but since the days of the new oligarchs this buyer no longer exists: buyers are now more from finance and new technologies, taking a much more rational and patrimonial approach to their acquisitions, they can afford it but are not willing to overpay for the asset, they are pragmatic investors.
The war of credentials in this market segment is fierce and it is suicidal for estate agents to bring sellers face to face with reality. However, should we systematically wait for the market to decide on a lack of offers and visits, even if it means devaluing the asset over time?

There are market realities and objective methods of analysis that should reduce uncertainty and bring the seller and the buyer to reality from the beginning, one should have the courage to adapt to reality and compensate for an unjustified price, rather than relying on marketing and storytelling when the property for sale becomes a money eater rather than a generator of liquidity in other projects!