Any real estate negotiation is a patience test for the seller, agent and the home-buyer. Home-buyer tries his utmost push and pulls strategy to get better discounts from the builder. Builder tries his best not to go beyond the marginal discount benchmark, whereas agent ends up with the lot of pressure & tries to convince both builder & buyer to get his deal done.
Negotiation is one of the difficult phases of the real estate deal. Conversion of any negotiation depends upon the "urgency factor" with respect to builder, agent & homebuyer. It depends upon who will initiate the urgency factor in the negotiation phase. If the builder is in urgent phase, he ends up giving more discounts. Normally, he does this to push up the sales to correlate with his completion time factor of the project, or due to less sale factor or due to the current market condition. However, some reputed builders in Metro cities come up with some flexible payment plans by not giving any discounts.
If the urgency factor lies with an agent, he ends up withdrawing some of his percentage commission to a builder in order to give further discounts to the homebuyer. Lastly, if the homebuyer is in the urgent need, he ends up getting a deal with lesser or no discount. However, this happens normally due to the demand for the project depending upon its location advantages and the builder brand equity.
In a nutshell, we can say that Negotiation depends upon the three major factors:
1. Demand for the project due to the location advantages.
2. Current market conditions.
3. Urgency factor with respect to builder, agent & the homebuyer.
Courtesy/By: Rakesh Gadigi
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27 Jan 2018
