I’ve written about getting more power in a negotiation. Now it’s time to wrap it all up by discussing the final steps to closing a deal.
Just remember… There are a few traps you can easily fall into if you’re not careful.
To avoid those traps, consider these tips:
- Make Your Offer the Right Way
I mentioned soft offers in an earlier post. This is when you let the agent know that you can’t go above a certain amount and ask if there’s any wiggle room in the asking price.
Sometimes the price will be negotiable, but other times it’s not. You can’t do much about it if it’s the latter.
This is why a soft offer is generally made over the phone. An agent would ideally give you a straight answer so that you know if you should keep pursuing or move on.
But if you’re making a more serious offer, this isn’t the right approach. You might want to do it over post instead.
This is because an agent might be too busy to give you all the information you need over the phone. This could cost you a great opportunity.
It’s much better to send an post saying that you want to buy a property at certain terms. The agent can review the terms and get back to you.
There are two possible outcomes here…
The vendor will accept your offer. Or they won’t. Let’s go over both situations.
- Be Solid
About 90% of the time, your initial offer will get rejected. It’s just a step that you have to go through in a negotiation.
When this happens, you must remain solid. Remember this is not about emotion… just numbers.
This means that you should tell the agent you’ll get back to them with a counteroffer. After that, don’t contact them until you’ve made the follow-up offer.
This might make the vendor apprehensive about losing you as a buyer. They might become a bit more flexible.
Of course, you should never state your upper limit in the initial offer. For instance, if you’re ready to go up to $400,000, you might start at $385,000 and work your way up.
As you’re reviewing the offer, engage your lawyer and broker for help. Figure out how you can make your offer appealing enough to get accepted the second time around. If you do it right, the vendor will likely loosen up a bit.
- Prepare for the Final Stages
You might think that everything will proceed smoothly once your offer is accepted.
Sadly, this may not be true. Things will slow down, and there’s work to be done before you can sign the deal.
This is where you need to engage your lawyer to go over the contract details. They need to look at all the features and give you the green light to proceed.
Also, get in touch with your bank or broker to see if things are all set on the financial side of things.
If you run into any issues, don’t hesitate to hold off on signing the deal until you’re 100% confident that everything is in place.
Remember that it’s not over until you put your name on the contract. Go through the final stages carefully to eliminate all possible issues.
With these steps, you should have no trouble striking a deal that meets all your needs.
To find out more about closing deals, sign up for my webinar.